FAC Explorer

Audit 22748

FY End
2022-06-30
Total Expended
$6.64M
Findings
2
Programs
10
Organization: Erikson Institute (IL)
Year: 2022 Accepted: 2023-03-19
Auditor: Rsm US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
22682 2022-001 Significant Deficiency - N
599124 2022-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.45M Yes 1
93.434 Every Student Succeeds Act/preschool Development Grants $319,445 - 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $273,833 - 0
93.870 Maternal, Infant and Early Childhood Home Visiting Grant $134,655 - 0
93.600 Head Start $91,568 - 0
84.033 Federal Work-Study Program $69,000 Yes 0
47.076 Education and Human Resources $62,673 - 0
84.305 Education Research, Development and Dissemination $49,962 - 0
93.505 Affordable Care Act (aca) Maternal, Infant, and Early Childhood Home Visiting Program $13,127 - 0
84.425 Education Stabilization Fund $5,091 - 0

Contacts

Name Title Type
LMGWHNUKM2C5 Christine Frankhauser Auditee
3128937121 Craig Wories Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entityidentifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Institute has federally-approved indirect cost rates of 40.60% for on-campus and 20% for off-campuscosts. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal awardactivity of Erikson Institute (the Institute) under programs of the federal government for the year endedJune 30, 2022. The information in this schedule is presented in accordance with the requirements ofTitle 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, CostPrinciples, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedulepresents only a selected portion of the operations of the Institute, it is not intended to and does notpresent the financial position, changes in net assets, or cash flows of the Institute. There were no federalawards expended for non-cash assistance or insurance for the year.
Title: Federal Direct Student Loan Program Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures are recognized following the cost principles contained in the Uniform Guidance, whereincertain types of expenditures are not allowable or are limited as to reimbursement. Pass-through entityidentifying numbers are presented where available. De Minimis Rate Used: N Rate Explanation: The Institute has federally-approved indirect cost rates of 40.60% for on-campus and 20% for off-campuscosts. During the fiscal year ended June 30, 2022, the Institute issued new loans to students under the FederalDirect Student Loan Program (FDLP). The value of loans issued for the FDLP is based on disbursedamounts. The loan amounts issued during the year are disclosed on the Schedule. The Institute isresponsible only for the performance of certain administrative duties with respect to the federallyguaranteed student loan programs and, accordingly, balances and transactions relating to these loanprograms are not included in the Institutes basic financial statements. Therefore, it is not practicable todetermine the balance of loans outstanding made to students and former students of the Institute atJune 30, 2022.

Finding Details

Finding 2022-001
Finding 2022-001: Timely Enrollment Reporting Major Federal Program Title: United States Department of Education, Student Financial Assistance Cluster, Direct Student Loans (AL 84.268) Criteria: 2 CFR Part 200.303(a) state that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statues, regulations, and terms and conditions of the federal award. Specific criteria for enrollment reporting are established by the U.S. Department of Education within the 2021-2022 Federal Student Aid Handbook, Chapter 3, Sharing Information with NSLDS, Federal Loan Servicers, and Guarantors, including: (1) Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the NSLDS. (2) Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. (3) Institutions must report any enrollment status changes for students within 30 days; however, if a roster file is used, then the Institute may use the roster file to provide the update within 60 days. Condition: The Institute failed to notify the National Student Loan Data System for three selected students' withdrawals within the required 60 days. However, it was properly determined for the students to have earned 100% of the Title IV funds. Context: Three of 14 students tested from a population of 43 students with enrollment status changes were not reported in the required timeframe.Cause: These had occurred during the Registration and Records Department transitions with the Senior Director of Enrollment management leaving in July. Going forward it is practice for the Institute to notify NSLDS at the time of withdrawal determination to ensure timely submission. Effect: Noncompliance with federal regulations could result in the loss of future federal financial aid funding. In addition, not reporting enrollment status change within the required timeframe can impact an individual student?s loan deferment and repayment schedule. Questioned Costs: None Repeat finding: No Recommendation: We recommend that management consider the use of the ad hoc reporting option in NSLDS to prevent inadvertent late enrollment status updates for Return to Title IV Funds. Views of Responsible Official: Management agrees with this finding. Please see corrective action plan attached.
Finding 2022-001
Finding 2022-001: Timely Enrollment Reporting Major Federal Program Title: United States Department of Education, Student Financial Assistance Cluster, Direct Student Loans (AL 84.268) Criteria: 2 CFR Part 200.303(a) state that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statues, regulations, and terms and conditions of the federal award. Specific criteria for enrollment reporting are established by the U.S. Department of Education within the 2021-2022 Federal Student Aid Handbook, Chapter 3, Sharing Information with NSLDS, Federal Loan Servicers, and Guarantors, including: (1) Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the NSLDS. (2) Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. (3) Institutions must report any enrollment status changes for students within 30 days; however, if a roster file is used, then the Institute may use the roster file to provide the update within 60 days. Condition: The Institute failed to notify the National Student Loan Data System for three selected students' withdrawals within the required 60 days. However, it was properly determined for the students to have earned 100% of the Title IV funds. Context: Three of 14 students tested from a population of 43 students with enrollment status changes were not reported in the required timeframe.Cause: These had occurred during the Registration and Records Department transitions with the Senior Director of Enrollment management leaving in July. Going forward it is practice for the Institute to notify NSLDS at the time of withdrawal determination to ensure timely submission. Effect: Noncompliance with federal regulations could result in the loss of future federal financial aid funding. In addition, not reporting enrollment status change within the required timeframe can impact an individual student?s loan deferment and repayment schedule. Questioned Costs: None Repeat finding: No Recommendation: We recommend that management consider the use of the ad hoc reporting option in NSLDS to prevent inadvertent late enrollment status updates for Return to Title IV Funds. Views of Responsible Official: Management agrees with this finding. Please see corrective action plan attached.