FAC Explorer

Audit 6607

FY End
2023-08-31
Total Expended
$4.16M
Findings
8
Programs
7
Organization: Clarendon College (TX)
Year: 2023 Accepted: 2023-12-14
Auditor: Condley and Company LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4290 2023-001 Significant Deficiency - N
4291 2023-001 Significant Deficiency - N
4292 2023-001 Significant Deficiency - N
4293 2023-001 Significant Deficiency - N
580732 2023-001 Significant Deficiency - N
580733 2023-001 Significant Deficiency - N
580734 2023-001 Significant Deficiency - N
580735 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $1.75M Yes 1
84.268 Federal Direct Student Loans $1.12M Yes 1
10.855 Distance Learning and Telemedicine Loans and Grants $205,159 - 0
84.425 Education Stabilization Fund $97,913 Yes 0
84.048 Career and Technical Education -- Basic Grants to States $72,384 - 0
84.007 Federal Supplemental Educational Opportunity Grants $37,801 Yes 1
84.033 Federal Work-Study Program $31,633 Yes 1

Contacts

Name Title Type
J1BAGVKCQZZ7 Tex Buckhaults Auditee
8068744803 Jeff Graham Auditor
No contacts on file

Notes to SEFA

Title: Federal Assistance Reconciliation Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. See the Notes to the SEFA for chart.
Title: Significant accounting policies used in preparing the schedule Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414.
Title: Student Loans Processed and Administrative Recovery Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. See the Notes to the SEFA for chart.
Title: Pass through amounts are identified in the schedule Accounting Policies: The expenditures included in the schedule are reported for the College's fiscal year. Expenditure reports to funding agencies are prepared on the award period basis. The expenditures reported above represent funds which have been expended by the College for the purposes of the award. The expenditures reported above may not have been reimbursed by the funding agencies as of the end of the fiscal year. Some amounts reported in the schedule may differ from amounts used in the preparation of the general purpose financial statements. Separate accounts are maintained for the different awards to aid in the observance of limitations and restrictions imposed by the funding agencies. The College has followed all applicable guidelines issued by various entities in the preparation of the schedule. De Minimis Rate Used: N Rate Explanation: Since the College has an agency-approved Indirect Recovery Rate it has elected to not use the 10% de minimis cost rate as permitted in the UG, section 200.414. All pass through amounts are identified in the schedule.

Finding Details

Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.
Finding 2023-001
Criteria: In accordance with CFR section 685.200(a)(2)(i), "A Direct Subsidized Loan borrower must demonstrate financial need in accordance with title IV, part F of the Act". 20 U.S. Code 1087kk, "Except as otherwise provided therein, the amount of need of any student for financial assistance under this subchapter (except subparts [1] 1 or 2 of part A of this subchapter) is equal to: the cost of attendance of such student, minus the expected family contribution for such student, minus estimated financial assistance not received under this subchapter (as defined in section 1087vv(j) of this title)." Condition: We reviewed a sample of 40 students who received financial aid during the fiscal year. Out of the 40 students tested, 1 student was awarded aid in excess of the calculated financial need for the semester. Effect: The student being granted federal aid in an amount higher than the calculated need can result in unintended financial burden on the student, resulting in increased debt obligations upon graduation. On a systematic level, this condition may result in the College over-rewarding students who do not have a need for aid. Cause: The process for calculating financial need is the responsibility of the College. The Financial Aid Office is responsible for determining student financial need and making adjustments to federal loan amounts when scholarships and grants are received by the students, as well as if the enrollment status changes between full time and part time. This student dropped from full time to part time during the semester, and the adjustment to the subsidized loan amount was not made or transferred to the unsubsidized loan. Recommendation: We recommend the College evaluate and enhance the college's financial aid awarding procedures to prevent future instances of over-awarding. We recommend the College establish a system for ongoing monitoring of financial aid awards to identify and address discrepancies in a timely manner. Regularly review and update policies and procedures to adapt to changes in regulations and best practices. Views of responsible official and planned corrective actions: Management agrees with the finding as noted above and the financial aid office will review and update policies and procedures in the Clarendon College Financial Aid Handbook to establish system for ongoing monitoring of financial aid awards in order to identity and address discrepancies and potential overawards in a timely manner. The system will include monitoring Cost Of Attendance, enrollment status, and unmet need. The policy/procedure will be reviewed and submitted for adoption by the CC Board of Regents for the Clarendon College Financial Aid Handbook by February 2024.