Audit 20958

FY End
2022-06-30
Total Expended
$6.25M
Findings
6
Programs
6
Organization: Beacon College, Inc. (FL)
Year: 2022 Accepted: 2022-12-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
24843 2022-001 Significant Deficiency Yes E
24844 2022-001 Significant Deficiency Yes E
24845 2022-002 Significant Deficiency - L
601285 2022-001 Significant Deficiency Yes E
601286 2022-001 Significant Deficiency Yes E
601287 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $4.55M Yes 1
84.063 Federal Pell Grant Program $662,432 Yes 1
84.425F Emergency Relief for Institution $624,018 Yes 0
84.425E Emergency Relief for Students $288,756 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $87,590 Yes 0
84.033 Federal Work-Study Program $36,013 Yes 0

Contacts

Name Title Type
N5Q6CUSFQ744 Sandi Rysell Auditee
3526389756 Aaron Crall, CPA Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOANS DISBURSED Accounting Policies: The accompanying schedule of expenditures of federal awards and state financial assistance (the Schedule) includes the federal and state award activity of Beacon College, Inc. and is presented on the accrual basis of accounting. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance); and Chapter 10.650, Rules of the Auditor General, therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. There were no noncash awards in the current year nor any sub-recipients of federal awards and state financial assistance in the current year. The College has not elected 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 College participates in the Federal Direct Loan Program, including Federal Stafford Loans (Stafford) and Federal PLUS Loans (PLUS). The dollar amounts are listed in the schedule of federal awards although the College is not the recipient of the funds. Such programs are considered a component of the student financial assistance cluster. Loans processed by the College under this loan program were the following for the year ended June 30, 2022: Stafford Subsidized $682,795, Stafford Unsubsidized $689,869, PLUS $3,176,664, Total Direct Loans $4,549,328

Finding Details

2022 ? 001 Awarding of Direct Loans and Pell Grants Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Loan Program, 84.063 Pell Grant Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a), outlines the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 34 CFR 690.63 outlines the methodology for calculating the Pell grant award for eligible students. Condition: During our testing, we noted two instances out of 35 students tested where the loans awarded to the student were less than the maximum amount each student was eligible to receive. In addition, we noted one instance out of 29 students tested where the Pell grant award that was less than the amount the student was eligible to receive. Questioned costs: $3,000 under award for subsidized loans, $1,000 under award for unsubsidized loans, and $1,363 under award for Pell grants. Total known questioned costs amounted to $5,363. Context: 2 instances out of 35 students tested for loans and 1 instance out of 29 students tested for Pell grant awards. Cause: For the loan under awards, College did not account for certain transfer credits that made the students eligible for additional funding. For the Pell under award, the College did not adjust federal awards for the impact of changes that occurred after the initial packaging. Effect: The awards for these three students were not in the proper amounts. Repeat finding: Yes. 2021-001 Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes after the initial packaging to ensure that federal awards are revised as needed. Views of responsible officials and planned corrective actions: See Corrective Action Plan prepared by the College.
2022 ? 001 Awarding of Direct Loans and Pell Grants Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Loan Program, 84.063 Pell Grant Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a), outlines the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 34 CFR 690.63 outlines the methodology for calculating the Pell grant award for eligible students. Condition: During our testing, we noted two instances out of 35 students tested where the loans awarded to the student were less than the maximum amount each student was eligible to receive. In addition, we noted one instance out of 29 students tested where the Pell grant award that was less than the amount the student was eligible to receive. Questioned costs: $3,000 under award for subsidized loans, $1,000 under award for unsubsidized loans, and $1,363 under award for Pell grants. Total known questioned costs amounted to $5,363. Context: 2 instances out of 35 students tested for loans and 1 instance out of 29 students tested for Pell grant awards. Cause: For the loan under awards, College did not account for certain transfer credits that made the students eligible for additional funding. For the Pell under award, the College did not adjust federal awards for the impact of changes that occurred after the initial packaging. Effect: The awards for these three students were not in the proper amounts. Repeat finding: Yes. 2021-001 Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes after the initial packaging to ensure that federal awards are revised as needed. Views of responsible officials and planned corrective actions: See Corrective Action Plan prepared by the College.
2022?002 Higher Education Emergency Relief Fund (HEERF) Reporting Federal Agency: Department of Education Federal Program: Higher Education Emergency Relief Fund CFDA Numbers: 84.425 Higher Education Emergency Relief Fund Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Other Matter Criteria or specific requirement: The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. There are three components to reporting for HEERF: 1) public reporting on the (a)(1) student aid portion; 2) public reporting on the (a)(1) institutional portion (a)(2) and (a)(3) subprograms (quarterly reporting form), as applicable; and 3) the annual report. Condition: The College?s report of grants to students for the quarter ended September 30, 2021 was not submitted within the required 10 days. In addition, that same report did not report the correct amount of funding disbursed. Questioned costs: None Context: The College?s report of grants to students for the quarter ended September 20, 2021 was submitted three days after the due date. In addition, the amount of student grants reported for the quarter ended September 30, 2021 was overstated by $223,995. Cause: The College?s supporting documentation showed the correct amount disbursed. However, there was a data entry error in preparing the report. Effect: Inaccurate reporting of certain information as noted in the Context above. Repeat finding: No. Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate and timely reporting. Views of responsible officials and planned corrective actions: See Corrective Action Pan prepared by the College.
2022 ? 001 Awarding of Direct Loans and Pell Grants Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Loan Program, 84.063 Pell Grant Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a), outlines the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 34 CFR 690.63 outlines the methodology for calculating the Pell grant award for eligible students. Condition: During our testing, we noted two instances out of 35 students tested where the loans awarded to the student were less than the maximum amount each student was eligible to receive. In addition, we noted one instance out of 29 students tested where the Pell grant award that was less than the amount the student was eligible to receive. Questioned costs: $3,000 under award for subsidized loans, $1,000 under award for unsubsidized loans, and $1,363 under award for Pell grants. Total known questioned costs amounted to $5,363. Context: 2 instances out of 35 students tested for loans and 1 instance out of 29 students tested for Pell grant awards. Cause: For the loan under awards, College did not account for certain transfer credits that made the students eligible for additional funding. For the Pell under award, the College did not adjust federal awards for the impact of changes that occurred after the initial packaging. Effect: The awards for these three students were not in the proper amounts. Repeat finding: Yes. 2021-001 Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes after the initial packaging to ensure that federal awards are revised as needed. Views of responsible officials and planned corrective actions: See Corrective Action Plan prepared by the College.
2022 ? 001 Awarding of Direct Loans and Pell Grants Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.268 ? Federal Direct Loan Program, 84.063 Pell Grant Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matter Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a), outlines the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. In addition, 34 CFR 690.63 outlines the methodology for calculating the Pell grant award for eligible students. Condition: During our testing, we noted two instances out of 35 students tested where the loans awarded to the student were less than the maximum amount each student was eligible to receive. In addition, we noted one instance out of 29 students tested where the Pell grant award that was less than the amount the student was eligible to receive. Questioned costs: $3,000 under award for subsidized loans, $1,000 under award for unsubsidized loans, and $1,363 under award for Pell grants. Total known questioned costs amounted to $5,363. Context: 2 instances out of 35 students tested for loans and 1 instance out of 29 students tested for Pell grant awards. Cause: For the loan under awards, College did not account for certain transfer credits that made the students eligible for additional funding. For the Pell under award, the College did not adjust federal awards for the impact of changes that occurred after the initial packaging. Effect: The awards for these three students were not in the proper amounts. Repeat finding: Yes. 2021-001 Recommendation: We recommend the College evaluate its policies and procedures for identifying transfer credits and other changes after the initial packaging to ensure that federal awards are revised as needed. Views of responsible officials and planned corrective actions: See Corrective Action Plan prepared by the College.
2022?002 Higher Education Emergency Relief Fund (HEERF) Reporting Federal Agency: Department of Education Federal Program: Higher Education Emergency Relief Fund CFDA Numbers: 84.425 Higher Education Emergency Relief Fund Award Period: July 1, 2021 to June 30, 2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance Other Matter Criteria or specific requirement: The Code of Federal Regulations, 2 CFR 200.303, non-Federal entities receiving Federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. There are three components to reporting for HEERF: 1) public reporting on the (a)(1) student aid portion; 2) public reporting on the (a)(1) institutional portion (a)(2) and (a)(3) subprograms (quarterly reporting form), as applicable; and 3) the annual report. Condition: The College?s report of grants to students for the quarter ended September 30, 2021 was not submitted within the required 10 days. In addition, that same report did not report the correct amount of funding disbursed. Questioned costs: None Context: The College?s report of grants to students for the quarter ended September 20, 2021 was submitted three days after the due date. In addition, the amount of student grants reported for the quarter ended September 30, 2021 was overstated by $223,995. Cause: The College?s supporting documentation showed the correct amount disbursed. However, there was a data entry error in preparing the report. Effect: Inaccurate reporting of certain information as noted in the Context above. Repeat finding: No. Recommendation: We recommend that the College review their reporting policies and procedures to ensure accurate and timely reporting. Views of responsible officials and planned corrective actions: See Corrective Action Pan prepared by the College.