Rockhurst University Single Audit Reports June 30, 2010
Rockhurst University June 30, 2010
Contents Schedule of Expenditures of Federal Awards ..................................................................... 1 Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards ...................................................................................... 2 Independent Accountants’ Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133..................................................... 4 Schedule of Findings and Questioned Costs...................................................................... 6 Summary Schedule of Prior Audit Findings ...................................................................... 10
Rockhurst University Schedule of Expenditures of Federal Awards Year Ended June 30, 2010
Cluster/Program Student Financial Aid Cluster Federal Supplemental Educational Opportunity Grants Federal Family Education Loans Federal Work-Study Program ARRA-Federal Work-Study Program Federal Perkins Loan Program Federal Pell Grant Program Federal Direct Loans Academic Competitiveness Grants National Science and Mathematics Access to Retain Talent (SMART) Grants Teacher Education Assistance for College and Higher Education (TEACH) Grants Total student financial aid cluster Improving Teacher Quality State Grants
AmeriCorps
Federal Agency/ Pass-Through Entity
CFDA Number
Amount
U.S. Department of Education U.S. Department of Education U.S. Department of Education U.S. Department of Education U.S. Department of Education U.S. Department of Education U.S. Department of Education U.S. Department of Education
84.007 84.032 84.033 84.033 84.038 84.063 84.268 84.375
$
165,658 19,806,527 478,330 43,661 2,507,340 1,341,743 285,000 63,025
U.S. Department of Education
84.376
50,000
U.S. Department of Education
84.379
27,500 24,768,784
U.S. Department of Education/Missouri Department of Higher Education Corporation for National and Community Service
Total federal awards
84.367
27,657
94.006
21,610 $ 24,818,051
Notes to Schedule 1. This schedule includes the federal awards activity of Rockhurst University and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Universities. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 2. The University provided no federal awards to subrecipients.
1
1201 Walnut Street, Suite 1700 Kansas City, MO 64106-2246 816.221.6300 Fax 816.221.6380 www.bkd.com
Independent Accountants’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing Standards
Board of Trustees Rockhurst University Kansas City, Missouri
We have audited the financial statements of Rockhurst University as of and for the year ended June 30, 2010, and have issued our report thereon dated October 15, 2010, which contains an explanatory paragraph regarding the University’s change in its method of recognition of classifications of net assets comprising donor-restricted endowment funds. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Internal Control Over Financial Reporting In planning and performing our audit, we considered the University’s internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the University’s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the University’s financial statements will not be prevented or detected and corrected on a timely basis. Our consideration of internal control over financial reporting was for the limited purpose described in the first paragraph of this section and would not necessarily identify all deficiencies in internal control that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses as defined above. Compliance and Other Matters As part of obtaining reasonable assurance about whether the University’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
2
1201 Walnut Street, Suite 1700 Kansas City, MO 64106-2246 816.221.6300 Fax 816.221.6380 www.bkd.com
Independent Accountants’ Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 Board of Trustees Rockhurst University Kansas City, Missouri
Compliance We have audited the compliance of Rockhurst University with the types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133 Compliance Supplement that are applicable to each of its major federal programs for the year ended June 30, 2010. The University’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Compliance with the requirements of laws, regulations, contracts and grants applicable to each of its major federal programs is the responsibility of the University’s management. Our responsibility is to express an opinion on the compliance of Rockhurst University based on our audit. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments and Non-Profit Universities. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the University’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the University’s compliance with those requirements. In our opinion, Rockhurst University complied, in all material respects, with the requirements referred to above that are applicable to each of its major federal programs for the year ended June 30, 2010. However, the results of our auditing procedures disclosed an instance of noncompliance with those requirements that are required to be reported in accordance with OMB Circular A-133 and is described in the accompanying schedule of findings and questioned costs as item 10-1. Internal Control Over Compliance The management of Rockhurst University is responsible for establishing and maintaining effective internal control over compliance with the requirements of laws, regulations, contracts and grants applicable to federal programs. In planning and performing our audit, we considered the University’s internal control over compliance with the requirements that could have a direct and material effect on a major federal program in order to determine our auditing procedures for the purpose of expressing our opinion on compliance and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the University’s internal control over compliance.
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Rockhurst University Schedule of Findings and Questioned Costs Year Ended June 30, 2010
Summary of Auditor’s Results 1.
The opinion(s) expressed in the independent accountants’ report was (were): Unqualified
2.
3.
4.
5.
Adverse
Disclaimed
The independent accountants’ report on internal control over financial reporting described: Significant deficiency(ies) noted considered material weakness(es)?
Yes
No
Significant deficiency(ies) noted that are not considered to be a material weakness?
Yes
No
Yes
No
Noncompliance considered material to the financial statements was disclosed by the audit?
The independent accountants’ report on internal control over compliance with requirements applicable to major federal awards programs described: Significant deficiency(ies) noted considered material weakness(es)?
Yes
No
Significant deficiency(ies) noted that are not considered to be a material weakness?
Yes
No
The opinion(s) expressed in the independent accountants’ report on compliance with requirements applicable to major federal awards was (were): Unqualified
6.
Qualified
Qualified
Adverse
The audit disclosed findings required to be reported by OMB Circular A-133?
Disclaimed
Yes
No
6
Rockhurst University Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2010
7.
The University’s major programs were: Cluster/Program Student Financial Aid Cluster Federal Supplemental Educational Opportunity Grants Federal Family Education Loans Federal Work-Study Program ARRA – Federal Work-Study Program Federal Perkins Loan Program Federal Pell Grant Program Federal Direct Loans Academic Competitiveness Grants National Science and Mathematics Access to Retain Talent (SMART) Grants Teacher Education Assistance for College and Higher Education (TEACH) Grants
CFDA Number 84.007 84.032 84.033 84.033 84.038 84.063 84.268 84.375 84.376 84.379
8.
The threshold used to distinguish between Type A and Type B programs as those terms are defined in OMB Circular A-133 was $300,000.
9.
The University qualified as a low-risk auditee as that term is defined in OMB Circular A-133?
Yes
No
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Rockhurst University Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2010
Findings Required to be Reported by Government Auditing Standards Reference Number
Finding
Questioned Costs
No matters are reportable.
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Rockhurst University Schedule of Findings and Questioned Costs (Continued) Year Ended June 30, 2010
Findings Required to be Reported by OMB Circular A-133 Reference Number 10-1
Finding U.S. Department of Education – Student Financial Aid Federal Family Education Loan Program (FFEL) CFDA 84.032 Program year 2009-2010
Questioned Costs $
66
Criteria or Specific Requirement – Special tests and provisions related to the refunding of federal student financial aid. Condition – The University did not perform refund procedures within accordance with the federal regulations. Context – Out of a population of 38 students who received federal aid totaling $366,873 and withdrew, dropped out or were dismissed during the year ended June 30, 2010, eight student files were tested, who received $59,665 in federal aid. During our testing, we noted two instances in which the University did not correctly calculate the refunds. The calculations were based on the gross amount of aid the student received. Effect – Total under refund of $66 occurred. Cause – For two instances, the Banner system calculated the refund using the lender loan fees as part of the aid that could have been awarded. Recommendation – The University’s Financial Aid Office should implement procedures to ensure federal refund calculations are calculated correctly. Planned Corrective Actions – The Financial Aid Office will use the Federal web-based Return to Title IV calculation tool to do all returns. The Assistant Director will also be trained on Title IV refunds and will review all refunds completed by the Director to ensure accuracy.
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Rockhurst University Summary Schedule of Prior Audit Findings Year Ended June 30, 2010
Reference Number
Summary of Finding
Status
No matters are reportable.
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