FAC Explorer

Audit 97700

FY End
2022-05-31
Total Expended
$9.24M
Findings
10
Programs
6
Organization: Brevard College (NC)
Year: 2022 Accepted: 2022-11-04
Auditor: Cherry Bekaert LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
103817 2022-001 - - N
103818 2022-001 - - N
103819 2022-001 - - N
103820 2022-001 - - N
103821 2022-001 - - N
680259 2022-001 - - N
680260 2022-001 - - N
680261 2022-001 - - N
680262 2022-001 - - N
680263 2022-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.92M Yes 1
84.063 Federal Pell Grant Program $1.51M Yes 1
84.425 Education Stabilization Fund $95,350 Yes 0
84.033 Federal Work-Study Program $70,318 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $66,174 Yes 1
84.038 Federal Perkins Loan Program $25,974 Yes 1

Contacts

Name Title Type
LTJAP519MKA6 Mitch Radford Auditee
8286410095 Patricia Pryor Auditor
No contacts on file

Notes to SEFA

Title: Note 3-Federal Perkins Loan Program Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state grant activity of Brevard College (the "College") and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate - The College has elected not to use the 10 percent de minimum indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the College. Balances and transactions relating to this program are included in the College's consolidated financial statements. The balance of loans outstanding under the Federal Perkins Loan Program was $-0-, net of allowance for doubtful accounts of $29,000 at May 31, 2022. In accordance with the Federal Perkins Loans closing guidelines, no new loans are allowed and no new loans were disbursed by the College for the year ended May 31, 2019 or thereafter. Cash on hand at May 31, 2022, under the Perkins Loan Program was $2,162.
Title: Note 4-Federal Direct Student Loans Program Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state grant activity of Brevard College (the "College") and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate - The College has elected not to use the 10 percent de minimum indirect cost rate as allowed under the Uniform Guidance. During the fiscal year ended May 31, 2022, the College processed $5,918,955 of new loans under the Federal Direct Student Loans Program (CFDA #84.268). The College is responsible only for the performance of certain administrative duties with respect to the Federal Direct Student Loans Program and, accordingly, these loans are not included on the College's consolidated financial statements; furthermore, it is not practical to determine the balance of loans outstanding to students and former students of the College under this program at May 31, 2022.
Title: Note 5-Higher Education Emergency Relief Fund Accounting Policies: The accompanying schedule of expenditures of federal and state awards (the "Schedule") includes the federal and state grant activity of Brevard College (the "College") and is presented on the accrual basis of accounting. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (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 the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College. De Minimis Rate Used: N Rate Explanation: Indirect Cost Rate - The College has elected not to use the 10 percent de minimum indirect cost rate as allowed under the Uniform Guidance. The Coronavirus Aid, Relief, and Economic Security Act created a Higher Education Emergency Relief Fund ("HEERF") to provide financial relief to students and institutions who were impacted by the COVID-19 pandemic. The Coronavirus Response and Relief Supplemental Appropriations Act (CRRSAA) and the American Rescue Plan (ARP) provided additional rounds of HEERF (II and III). The HEERF funds contained three components, an institutional award, a student aid award, and a strengthening institutions award. The following cumulative amounts have been awarded as HEERF as of May 31, 2022: See notes to SEFSA for Table or Chart. The College expended the following funds for the year ended May 31, 2022: See notes to SEFSA for table or chart.

Finding Details

Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.
Finding 2022-001
Finding 2022-001 - Student Financial Aid Cluster, CFDA# 84.007, 84.033, 84.038, 84.063, 84.268 Compliance Requirement: Special Test and Provisions - Enrollment Reporting Condition: The College sent 10 changes related to withdrawn students to the National Student Loan Data System (?NSLDS?) after 60 days and did not send status changes related to 11 withdrawn students to the NSLDS for the year ended May 31, 2022 of which 14 students received direct loans. Criteria: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The College had not reported changes of withdrawn students to the NSLDS as required under the Uniform Grant Guidance for the year ended May 31, 2022. The College had a system upgrade in the Fall of 2021 and did not realize there was a bug in the system that did not properly report withdrawn students on one of the standard reports produced by the system. The College did not have another monitoring mechanism in place that would have alerted them to this deficiency in the automated system reporting. Context: The College is required to send changes in attendance levels, graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Effect: The College did not report withdraw changes to the NSLDS timely. Recommendation: The College should put in place a process to timely capture withdrawn student changes so that they can be reported to the NSLDS. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.