FAC Explorer

Audit 17990

FY End
2022-06-30
Total Expended
$64.75M
Findings
4
Programs
10
Organization: Pratt Institute (NY)
Year: 2022 Accepted: 2023-03-30
Auditor: Grant Thornton LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
25264 2022-001 Significant Deficiency - N
25265 2022-001 Significant Deficiency - N
601706 2022-001 Significant Deficiency - N
601707 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $45.76M Yes 1
84.038 Federal Perkins Loan Program $6.62M Yes 0
84.425 Education Stabilization Fund $3.74M Yes 0
84.063 Federal Pell Grant Program $3.37M Yes 1
84.033 Federal Work-Study Program $825,836 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $279,815 Yes 0
47.076 Education and Human Resources $134,189 - 0
45.149 Promotion of the Humanities_division of Preservation and Access $46,637 - 0
45.003 Exploration Grant $19,888 - 0
10.699 Partnership Agreements $10,319 - 0

Contacts

Name Title Type
LUE9B6MDL4N5 Cathleen Kenny Auditee
7186363784 Dennis Morrone Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL DIRECT STUDENT LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pratt Institute (the Institute) for the year ended June 30, 2022. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the Institutes financial statements. Because the Schedule presents only a select portion of the operations of the Institute, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Institute. De Minimis Rate Used: N Rate Explanation: Federal expenditures included in 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 to reimbursement. The Institute has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. In relation to the Federal Direct Student Loan Program, the Institute is responsible only for the performance of certain administrative duties; therefore, the programs balance of loans outstanding and related transactions are not included in the Institutes financial statements. It is not practicable to determine the balance of loans outstanding to students of the Institute under this program at June 30, 2022. The Schedule includes the amounts loaned to students during the year ended June 30, 2022.
Title: FEDERAL PERKINS LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pratt Institute (the Institute) for the year ended June 30, 2022. 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). Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the Institutes financial statements. Because the Schedule presents only a select portion of the operations of the Institute, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the Institute. De Minimis Rate Used: N Rate Explanation: Federal expenditures included in 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 to reimbursement. The Institute has not elected to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Institute administers and accounts for certain aspects of the Federal Perkins Loan Program. Therefore, the Institutes financial statements include the programs net assets and related transactions. Federal Perkins loans outstanding at June 30, 2022 totaled $2,608,493. The Federal Perkins Loan Programexpenditures reported on the Schedule consist of the balance of loans outstanding as of June 30, 2021 totaling $6,617,246 with no loans advanced or administrative cost allowance recorded during the year ended June 30, 2022. The following presents the Perkins loan balance as of June 30, 2022: $2,608,493. See the Notes to the Schedule of Expenditures of Federal Awards for a table with the Perkins loan rollforward from June 30, 2021 to June 30, 2022.

Finding Details

Finding 2022-001
Special Tests and Provisions - Enrollment Reporting Compliance and Internal Control (Significant Deficiency) U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Student Loans (Federal Assistance Listing #84.268) Federal Award Number: P268K211875 Federal Pell Grant Program (Federal Assistance Listing #84.063) Federal Award Number: P063P211875 Federal Award Year: 2021-2022 Criteria: Under the Pell grant and U.S. Department of Education (?ED?) direct loan programs, institutions are required to report enrollment information via the National Student Loan Data System (?NSLDS?) (OMB No.1845-0035) (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution?s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; ?Campus Level? and ?Program Level,? both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record: OPEID, CIP Code, CIP Year, Credential Level, Published Program Length Measurement, Published Program Length, Program Begin Date, Program Enrollment Status, and Program Enrollment Effective Date. Condition, Context, and Sample Method: Due to an inconsistency between the Institute?s and NSLDS?s approach to calculating program lengths, from a sample selection of forty (40) students, we identified forty (40) students whose Published Program Length Measurement and Published Program Length were inaccurately reported. The auditor made the initial selection of forty (40) students using a nonstatistical approach that obtained a representative sample from across the population. Cause: The NSLDS Enrollment Reporting Guide provides a caution that institutions should report associate and bachelor degree programs in years and not months. When program length is reported in months or weeks, NSLDS uses this value along with the Weeks in Title IV Academic Year value to calculate a length in years. This resulted in program lengths that are too long. For thirty (30) of the students selected in our sample enrolled in the Institute for a bachelor?s degree program the Institute reported to the NSLDS a Reported Program Length of forty-eight (48) Months instead of four (4) years. This resulted in the Institute providing the NSLDS the information, along with a Weeks in Title IV Academic Year of thirty (30), to calculate and display a Published Program Length in Years of 6.857 years (48 multiplied by 30 divided by 30 multiplied by 7) instead of the correct period, four (4) years. Effect: The accuracy of the Published Program Length Measurement and Published Program Length in Years were inaccurately reported to the NSLDS for the forty (40) students selected for testing. Questioned Costs: None identified. Identified as a Repeat Finding: No. Recommendation: The Institute should ensure that student Published Program Length Measurement is listed in years and that reported Program Length is calculated in years as recommended by the NSLDS Enrollment Reporting Guide so that the Published Program Length calculation is accurate to the true length of the program.
Finding 2022-001
Special Tests and Provisions - Enrollment Reporting Compliance and Internal Control (Significant Deficiency) U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Student Loans (Federal Assistance Listing #84.268) Federal Award Number: P268K211875 Federal Pell Grant Program (Federal Assistance Listing #84.063) Federal Award Number: P063P211875 Federal Award Year: 2021-2022 Criteria: Under the Pell grant and U.S. Department of Education (?ED?) direct loan programs, institutions are required to report enrollment information via the National Student Loan Data System (?NSLDS?) (OMB No.1845-0035) (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution?s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; ?Campus Level? and ?Program Level,? both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record: OPEID, CIP Code, CIP Year, Credential Level, Published Program Length Measurement, Published Program Length, Program Begin Date, Program Enrollment Status, and Program Enrollment Effective Date. Condition, Context, and Sample Method: Due to an inconsistency between the Institute?s and NSLDS?s approach to calculating program lengths, from a sample selection of forty (40) students, we identified forty (40) students whose Published Program Length Measurement and Published Program Length were inaccurately reported. The auditor made the initial selection of forty (40) students using a nonstatistical approach that obtained a representative sample from across the population. Cause: The NSLDS Enrollment Reporting Guide provides a caution that institutions should report associate and bachelor degree programs in years and not months. When program length is reported in months or weeks, NSLDS uses this value along with the Weeks in Title IV Academic Year value to calculate a length in years. This resulted in program lengths that are too long. For thirty (30) of the students selected in our sample enrolled in the Institute for a bachelor?s degree program the Institute reported to the NSLDS a Reported Program Length of forty-eight (48) Months instead of four (4) years. This resulted in the Institute providing the NSLDS the information, along with a Weeks in Title IV Academic Year of thirty (30), to calculate and display a Published Program Length in Years of 6.857 years (48 multiplied by 30 divided by 30 multiplied by 7) instead of the correct period, four (4) years. Effect: The accuracy of the Published Program Length Measurement and Published Program Length in Years were inaccurately reported to the NSLDS for the forty (40) students selected for testing. Questioned Costs: None identified. Identified as a Repeat Finding: No. Recommendation: The Institute should ensure that student Published Program Length Measurement is listed in years and that reported Program Length is calculated in years as recommended by the NSLDS Enrollment Reporting Guide so that the Published Program Length calculation is accurate to the true length of the program.
Finding 2022-001
Special Tests and Provisions - Enrollment Reporting Compliance and Internal Control (Significant Deficiency) U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Student Loans (Federal Assistance Listing #84.268) Federal Award Number: P268K211875 Federal Pell Grant Program (Federal Assistance Listing #84.063) Federal Award Number: P063P211875 Federal Award Year: 2021-2022 Criteria: Under the Pell grant and U.S. Department of Education (?ED?) direct loan programs, institutions are required to report enrollment information via the National Student Loan Data System (?NSLDS?) (OMB No.1845-0035) (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution?s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; ?Campus Level? and ?Program Level,? both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record: OPEID, CIP Code, CIP Year, Credential Level, Published Program Length Measurement, Published Program Length, Program Begin Date, Program Enrollment Status, and Program Enrollment Effective Date. Condition, Context, and Sample Method: Due to an inconsistency between the Institute?s and NSLDS?s approach to calculating program lengths, from a sample selection of forty (40) students, we identified forty (40) students whose Published Program Length Measurement and Published Program Length were inaccurately reported. The auditor made the initial selection of forty (40) students using a nonstatistical approach that obtained a representative sample from across the population. Cause: The NSLDS Enrollment Reporting Guide provides a caution that institutions should report associate and bachelor degree programs in years and not months. When program length is reported in months or weeks, NSLDS uses this value along with the Weeks in Title IV Academic Year value to calculate a length in years. This resulted in program lengths that are too long. For thirty (30) of the students selected in our sample enrolled in the Institute for a bachelor?s degree program the Institute reported to the NSLDS a Reported Program Length of forty-eight (48) Months instead of four (4) years. This resulted in the Institute providing the NSLDS the information, along with a Weeks in Title IV Academic Year of thirty (30), to calculate and display a Published Program Length in Years of 6.857 years (48 multiplied by 30 divided by 30 multiplied by 7) instead of the correct period, four (4) years. Effect: The accuracy of the Published Program Length Measurement and Published Program Length in Years were inaccurately reported to the NSLDS for the forty (40) students selected for testing. Questioned Costs: None identified. Identified as a Repeat Finding: No. Recommendation: The Institute should ensure that student Published Program Length Measurement is listed in years and that reported Program Length is calculated in years as recommended by the NSLDS Enrollment Reporting Guide so that the Published Program Length calculation is accurate to the true length of the program.
Finding 2022-001
Special Tests and Provisions - Enrollment Reporting Compliance and Internal Control (Significant Deficiency) U.S. Department of Education - Student Financial Assistance Cluster Federal Direct Student Loans (Federal Assistance Listing #84.268) Federal Award Number: P268K211875 Federal Pell Grant Program (Federal Assistance Listing #84.063) Federal Award Number: P063P211875 Federal Award Year: 2021-2022 Criteria: Under the Pell grant and U.S. Department of Education (?ED?) direct loan programs, institutions are required to report enrollment information via the National Student Loan Data System (?NSLDS?) (OMB No.1845-0035) (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution?s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information; ?Campus Level? and ?Program Level,? both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record: OPEID, CIP Code, CIP Year, Credential Level, Published Program Length Measurement, Published Program Length, Program Begin Date, Program Enrollment Status, and Program Enrollment Effective Date. Condition, Context, and Sample Method: Due to an inconsistency between the Institute?s and NSLDS?s approach to calculating program lengths, from a sample selection of forty (40) students, we identified forty (40) students whose Published Program Length Measurement and Published Program Length were inaccurately reported. The auditor made the initial selection of forty (40) students using a nonstatistical approach that obtained a representative sample from across the population. Cause: The NSLDS Enrollment Reporting Guide provides a caution that institutions should report associate and bachelor degree programs in years and not months. When program length is reported in months or weeks, NSLDS uses this value along with the Weeks in Title IV Academic Year value to calculate a length in years. This resulted in program lengths that are too long. For thirty (30) of the students selected in our sample enrolled in the Institute for a bachelor?s degree program the Institute reported to the NSLDS a Reported Program Length of forty-eight (48) Months instead of four (4) years. This resulted in the Institute providing the NSLDS the information, along with a Weeks in Title IV Academic Year of thirty (30), to calculate and display a Published Program Length in Years of 6.857 years (48 multiplied by 30 divided by 30 multiplied by 7) instead of the correct period, four (4) years. Effect: The accuracy of the Published Program Length Measurement and Published Program Length in Years were inaccurately reported to the NSLDS for the forty (40) students selected for testing. Questioned Costs: None identified. Identified as a Repeat Finding: No. Recommendation: The Institute should ensure that student Published Program Length Measurement is listed in years and that reported Program Length is calculated in years as recommended by the NSLDS Enrollment Reporting Guide so that the Published Program Length calculation is accurate to the true length of the program.