Audit 75144

FY End
2022-06-30
Total Expended
$18.89M
Findings
12
Programs
15
Organization: Northwest Nazarene University (ID)
Year: 2022 Accepted: 2023-03-27

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
64497 2022-002 Significant Deficiency - N
64498 2022-002 Significant Deficiency - N
64499 2022-002 Significant Deficiency - N
64500 2022-002 Significant Deficiency - N
64501 2022-002 Significant Deficiency - N
64502 2022-001 Significant Deficiency Yes I
640939 2022-002 Significant Deficiency - N
640940 2022-002 Significant Deficiency - N
640941 2022-002 Significant Deficiency - N
640942 2022-002 Significant Deficiency - N
640943 2022-002 Significant Deficiency - N
640944 2022-001 Significant Deficiency Yes I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $12.65M Yes 1
84.425E Higher Education Emergency Relief Funds $2.18M Yes 0
84.425F Higher Education Emergency Relief Funds $1.77M Yes 1
84.063 Federal Pell Grant $1.76M Yes 1
84.007 Federal Supplemental Education Opportunity Grants $180,812 Yes 1
84.033 Federal Work-Study Program $139,032 Yes 1
93.859 Inbre Grant $91,501 - 0
93.859 Inbre Grant - Pilot $48,093 - 0
43.008 Rocksat-X Program $25,421 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants $24,521 Yes 1
10.170 2020 Specialty Crop Block Grant $14,482 - 0
93.859 Inbre Grant - Rain $7,238 - 0
10.170 2018 Specialty Crop Block Grant $4,004 - 0
47.083 Epscor Rii Track-1 $760 - 0
10.170 2021 Specialty Crop Block Grant $633 - 0

Contacts

Name Title Type
ELJHAMA4CQW5 John Greentree Auditee
2084678523 Brenda Scherer Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Northwest Nazarene University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northwest Nazarene University under programs of the federal government for the year ended June 30, 2022. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Northwest Nazarene University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Northwest Nazarene University.
Title: PERKINS LOAN PROGRAM Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Northwest Nazarene University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Federal Perkins Loan Program (84.038) was closed out during the year ended June 30,2022. All loans were received, cancelled, or assigned as of June 30, 2022. The funds of$117,330 were returned to the Department of Education during the year ended June 30,2022.
Title: RELATED PARTY TRANSACTIONS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as toreimbursement. Northwest Nazarene University has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University received donations of $55,161 from board members.

Finding Details

2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-001: Suspension and Debarment Federal Agency: U.S. Department of Education Federal Program Title: Higher Education Emergency Relief Funds Assistance Listing Number: 84.425F Award Period: July 01, 2021 - June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The CRF subsections 200.317 through 200.326 address procurement standards within the Uniform Guidance. These standards include elements that should be included in a written procurement policy. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215?. Condition: During testing, it was noted there was no documentation to ensure the vendors were not suspended or debarred. In addition, there was no documentation of a second review to ensure the vendors were not suspended or debarred. Questioned Costs: None Context: During testing, it was noted there was no documentation to ensure certain vendors were not suspended or debarred. Cause: The University?s control system to document the prevention of contracting with a suspended and barred vendor was not in place. Effect: The University could have paid a vendor who was suspended or barred at the time of payment. Repeat Finding: Yes, see 2021-001 Recommendation: We recommend documenting the vendor was checked on the SAM.gov website prior to payment. In addition, We also recommend a supervisor review the documentation prior to payment as a second review. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-002: Outstanding Checks Federal Agency: U.S. Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: Various Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Condition: During our testing, we noted two outstanding checks which related to federal funding which were not returned to the Department of Education within the 240 days. Criteria or Specific Requirement: The Department of Education requires an institution must return to ED (notwithstanding any state law, such as a law that allows funds to escheat to the state) any Title IV funds, except FWS program funds, that it attempts to disburse directly to a student or parent but they do not receive. If a check is returned, or an EFT is rejected, the institution may make additional attempts to disburse the funds, provided that the attempts are made no later than 45 days after the funds were returned or rejected. If the institution does not make an additional attempt to disburse the funds, the funds must be returned before the end of the 45day period and no later than 240 days from the date of the initial attempt to disburse the funds (34 CFR 668.164(l)). Questioned Costs: None Context: During our testing, it was noted the University failed to return the funds in a timely manner. Cause: The University?s current process in place was not sufficient to ensure proper maintenance of outstanding checks. Possible Asserted Effect: The University was not in compliance with FSA regulations. Repeat Finding: No Recommendation: We recommend the University reviews outstanding checks regularly to ensure funds are returned to the Department of Education before 240 days of the original disbursement attempt. Views of Responsible Officials: Management agrees with finding.
2022-001: Suspension and Debarment Federal Agency: U.S. Department of Education Federal Program Title: Higher Education Emergency Relief Funds Assistance Listing Number: 84.425F Award Period: July 01, 2021 - June 30, 2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The CRF subsections 200.317 through 200.326 address procurement standards within the Uniform Guidance. These standards include elements that should be included in a written procurement policy. Additionally, non-federal entities are prohibited from contracting with or making subawards under covered transactions to parties that are suspended or debarred. ?Covered transactions? include contracts for goods and services awarded under a nonprocurement transaction (e.g., grant or cooperative agreement) that are expected to equal or exceed $25,000 or meet other criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a pass-through entity (i.e., subawards to subrecipients), irrespective of award amount, are considered covered transactions, unless they are exempt as provided in 2 CFR section 180.215?. Condition: During testing, it was noted there was no documentation to ensure the vendors were not suspended or debarred. In addition, there was no documentation of a second review to ensure the vendors were not suspended or debarred. Questioned Costs: None Context: During testing, it was noted there was no documentation to ensure certain vendors were not suspended or debarred. Cause: The University?s control system to document the prevention of contracting with a suspended and barred vendor was not in place. Effect: The University could have paid a vendor who was suspended or barred at the time of payment. Repeat Finding: Yes, see 2021-001 Recommendation: We recommend documenting the vendor was checked on the SAM.gov website prior to payment. In addition, We also recommend a supervisor review the documentation prior to payment as a second review. Views of Responsible Officials: Management agrees with finding.