Northpoint Bible CollegeHigher Education

Criteria: Nonfederal entities in receipt of federal funds must comply with the requirements of 2 CFR 200.303(a), which require an entity to establish and maintain effective internal control over the federal award to ensure compliance with federal statutes, regulations, and the terms and conditions of the federal award. This includes properly identifying all federal awards subject to the Uniform Guidance and fairly presenting the required information in the schedule of expenditures of federal awards (SEFA). Condition: It was noted that there was an omission of a federal grants with expenditures totaling $66,363 from the original schedule of expenditures of federal awards. Questioned Costs: None noted. Context: The College did not include $66,363 in federal grants on the original schedule of expenditures of federal awards. Effect: The Schedule of Expenditures of Federal Awards of was understated by $66,363, which resulted in an untimely audit of compliance with the types of compliance requirements described in the OMB Compliance Supplement in accordance with the Uniform Guidance. Cause: The College lacked proper internal controls to properly identify the grant funding as federal. Recommendation: The College should develop formally documented internal control procedures to outline a process to review the schedule of expenditures of federal awards for completeness. View of Responsible Officials and Planned Corrective Actions: The College agrees with the above recommendation and is committed to developing and implementing these new procedures.

Material Weakness 2022-001 General Ledger Maintenance Criteria: Several material audit adjustments were required to present the financial statements in accordance with accounting principles generally accepted in the United States of America. Condition: An effective system of internal control allows management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. Effect: Significant adjustments that were material in the aggregate in relation to the financial statements were not detected and recorded on a timely basis. Cause: Material adjustments were required to be made to the College's financial statement accounts. Recommendation: We recommend the College review its policies and procedures to ensure that all account balances and transactions are periodically reviewed for proper treatment in accordance with accounting principles generally accepted in the United States. View of Responsible Officials and Planned Corrective Actions: See management?s attached corrective action plan.

Student Financial Aid Cluster: 84.007 Federal Supplemental Education Opportunity Grant; 84.033 Federal Work Study Program; 84.063 Federal Pell Grant Program; 84.268 Federal Direct Student Loans Education Stabilization Fund: 84.425E Higher Education Emergency Relief Fund (HEERF) Student Aid Portion; 84.425F HEERF institutional Portion Material Weakness 2022-002 Reporting Criteria: Formally documented internal control procedures ensure schedules are ready for a Single Audit audit on a timely basis. This ensures submission of the Single Audit report as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Condition: The College failed to submit the Single Audit report to the Federal Audit Clearinghouse by the required deadline. Questioned Costs: None noted. Context: The College was required to submit the April 30, 2022 Single Audit report to the Federal Audit Clearinghouse within nine months of the College?s year-end. The College did not submit this report in the required period. Effect: The lack of formal process to provide timely audit support could result in the late submission of the Single Audit report. Cause: The College did not identify the audit requirement prior to the required deadline. Recommendation: The College should develop formally documented internal control procedures to outline a process to review grant agreements for audit requirements. Additionally, the College should develop formally documented internal control procedures that allow sufficient time to properly conduct a Single Audit. View of Responsible Officials and Planned Corrective Actions: See accompanying Corrective Action Plan as prepared by management.

Finding 2021-001Criteria: Reporting requirements under Uniform Guidance require accounting records support all internal reporting and the Schedule of Expenditures of Federal Awards.Condition: Over the past few years, there have been multiple instances where the College?s internal records are not being reconciled regularly. During our audit as of and for the year ended April 30, 2021, this trend has continued and included the following:? The operating cash account was not reconciled as of April 30, 2021. There was a $50,000 variance between the reconciliation and the general ledger.? The accounts receivable subsidiary ledger was not regularly reconciled to the general ledger. In addition, no formal allowance for doubtful account analysis was performed.? Accounts payable included approximately $48,000 of expenses recorded in the incorrect period.? Other assets and liabilities, including prepaid expenses and accrued liabilities were not regularly reconciled to the general ledger.? Approximately $300,000 of contributions restricted for scholarships were improperly posted as deferred revenue.It is our opinion that failure to monitor and reconcile the College?s internal records, on a regular basis, prevents the College from meeting the noted requirements under Uniform Guidance.Cause: Over the past few years, the College has experienced a period of ongoing transition of individuals within the College?s finance department. This has resulted in a lack of proper financial oversight by the College?s high-level management and Board of Trustees.Effect or potential effect: This failure to regularly reconcile the College?s internal financial records resulted in a series of material misstatements requiring adjustments during the audit process.Know questioned costs: There are no known questioned costs related to the College?s participation in the Student Financial Assistance Cluster or the Education Stabilization Fund.Recommendations: Timely analysis and adjustment of accounts is a necessary component of internal control and will help to ensure the accuracy of the College?s financial information. This analysis and adjustment should be performed monthly.

Over the past few years, we have noted a period of ongoing transition of certain individuals within the College?s finance department. This period has resulted in a lack of proper financial oversight by the College?s high-level management and Board of Trustees. Further, this transition appears to have resulted in multiple instances where the College?s internal records are not being reconciled regularly. During our audit as of and for the year ended April 30, 2020, we noted this trend has continued and included the following: ? Net assets per the College?s internal records did not properly roll into the year ended April 30, 2020. This was attributed to a transition in the College?s general ledger software which was not reconciled when the original transition occurred. ? The accounts receivable subsidiary ledger was not regularly reconciled to the general ledger. In addition, a lack of regular monitoring of student fees receivable resulted in a write-off of approximately $321,000. ? The accounts payable subsidiary ledger was not regularly reconciled to the general ledger, including the reversal of adjustments posted during the 2019 audit. Further, audit adjustments were posted to include unrecorded liabilities at April 30, 2020. ? Other assets and liabilities, including prepaid expenses and accrued liabilities were not regularly reconciled to the general ledger. This failure to regularly reconcile the College?s internal financial records resulted in a series of material misstatements requiring adjustments during the audit process. Timely analysis and adjustment of accounts is a necessary component of internal control and will help to ensure the accuracy of the College?s financial information. In addition, reporting requirements under Uniform Guidance require accounting records support all internal reporting and the Schedule of Expenditures of Federal Awards. It is our opinion that failure to monitor and reconcile the College?s internal records, on a regular basis, prevents the College from meeting this requirement.

Over the past few years, we have noted a period of ongoing transition of certain individuals within the College?s finance department. This period has resulted in a lack of proper oversight by the College?s high-level management and Board of Trustees. Further, this transition appears to have resulted in multiple instances where the College?s internal records are not being reconciled regularly. During our audit as of and for the year ended April 30, 2019, we noted this trend has continued and included the following: ? Net assets per the College?s internal records did not properly roll into the year ended April 30, 2019. This was attributed to a transition in the College?s general ledger software which was not reconciled when the original transition occurred. ? The accounts receivable subsidiary ledger was not regularly reconciled to the general ledger. In addition, a lack of regular monitoring of student fees receivable resulted in an increase in the allowance for doubtful accounts of approximately $463,000. ? The accounts payable subsidiary ledger was not regularly reconciled to the general ledger, including the reversal of adjustments posted during the 2018 audit and adjustments to include unrecorded liabilities at April 30, 2019. ? Other assets and liabilities, including prepaid expenses and accrued liabilities were not regularly reconciled to the general ledger. This failure to regularly reconcile the College?s internal financial records resulted in a series of material misstatements requiring adjustments during the audit process. Timely analysis and adjustment of accounts is a necessary component of internal control and will help to ensure the accuracy of the College?s financial information. In addition, reporting requirements under Uniform Guidance require accounting records support all internal reporting and the Schedule of Expenditures of Federal Awards. It is our opinion that failure to reconcile the College?s internal records, on a regular basis, prevents the College from meeting this requirement.

GSA_MIGRATION

GSA_MIGRATION