FAC Explorer

Audit 26828

FY End
2022-06-30
Total Expended
$22.23M
Findings
2
Programs
14
Organization: Rhode Island School of Design (RI)
Year: 2022 Accepted: 2023-03-30
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
30709 2022-001 Significant Deficiency - L
607151 2022-001 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $13.35M Yes 0
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $2.21M Yes 0
84.425 Education Stabilization Fund $1.87M Yes 1
84.063 Federal Pell Grant Program $1.67M Yes 0
84.033 Federal Work-Study Program $463,450 Yes 0
84.038 Federal Perkins Loan Program $245,875 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $207,426 Yes 0
47.081 Office of Experimental Program to Stimulate Competitive Research $138,341 - 0
45.301 Museums for America $122,050 - 0
43.008 Education $39,242 - 0
66.129 Southeast New England Coastal Watershed Restoration Program $19,876 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $18,300 - 0
11.417 Sea Grant Support $8,742 - 0
45.149 Promotion of the Humanities_division of Preservation and Access $4,837 - 0

Contacts

Name Title Type
TXXKJMJ4TLC1 Thomas Mattos Auditee
4014546649 Andrea Caladie Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes federal award activity of Rhode Island School of Design (the School) under programs of the federal government 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 Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the School, it is not intended to and does not present the financial position, changes in net assets or cash flows of the School. Expenditures reported 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 expenditures are not allowable or limited as to reimbursement. The School recorded $2,205,217 in federal expenditures from the Federal Emergency Management Agency(FEMA) related to the Disaster grants - public assistance (presidentially declared disasters) program. Of these expenditures, $565,531 were related to eligible expenditures in fiscal year 2021 which FEMA approved in fiscal year 2022. De Minimis Rate Used: N Rate Explanation: The School applies its predetermined approved facilities and administrative rate when chargingindirect costs to federal awards rather than the 10% de minimus indirect cost rate allowed underthe Uniform Guidance. The federal student loan program listed below is administered directly by the School, and balances and transactions relating to this program is included in the student loans receivable balance of the School's consolidated financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2022 consists of: Outstanding Balance at June 30, 2022 Federal Perkins Loan Program $ 223,028

Finding Details

Finding 2022-001
Finding 2022-001 - Higher Education Emergency Relief Funds (HEERF) Reporting ALN No.: 84.425E Education Stabilization Fund - Student Aid Portion and 84.425F Education Stabilization Fund - Institutional Portion Award Year: July 1, 2021 - June 30, 2022 Federal Agency: U.S. Department of Education Pass Through Entity: Not applicable Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that specifies the information to be reported and also that the deadline to submit all quarterly reports, student and institutional, is within 10 days of the end of the calendar quarter. The guidance also required these reports to be publicly posted on the institution's website within 30 days after the publication of the notice or 30 days after the date the Department first obligated the funds under HEERF I, II, or III to the institution for Emergency Financial Aid Grants to Students, whichever comes later. Condition: For three of the four quarters during the year, institutional reports were not completed and submitted and therefore, also not publicly posted to the School's website. For all four quarters of the year, student quarterly reports were not completed and publicly posted to the School's website. The annual report was completed, but not publicly posted to the School's website. Cause: The School noted there was a misunderstanding of the HEERF reporting requirements, as only one draw down occurred for each of the student and institutional expenditures during the year. The drawdowns occurred in the last month of the fiscal year. Effect: The School is out of compliance with the Department's reporting requirements. Questioned Costs: None. Recommendation: The School should ensure it keeps up to date on the Department?s HEERF guidance and ensure that reporting is done accurately and timely. Management Response: Management agrees with the recommendation and plans to post all reports and put in place procedures to remain in compliance with reporting timeliness.
Finding 2022-001
Finding 2022-001 - Higher Education Emergency Relief Funds (HEERF) Reporting ALN No.: 84.425E Education Stabilization Fund - Student Aid Portion and 84.425F Education Stabilization Fund - Institutional Portion Award Year: July 1, 2021 - June 30, 2022 Federal Agency: U.S. Department of Education Pass Through Entity: Not applicable Criteria: The U.S. Department of Education (the Department) has issued guidance for the Education Stabilization Funds (ESF) HEERF for quarterly reporting for all sections (a)(1), (a)(2), (a)(3) and (a)(4) that specifies the information to be reported and also that the deadline to submit all quarterly reports, student and institutional, is within 10 days of the end of the calendar quarter. The guidance also required these reports to be publicly posted on the institution's website within 30 days after the publication of the notice or 30 days after the date the Department first obligated the funds under HEERF I, II, or III to the institution for Emergency Financial Aid Grants to Students, whichever comes later. Condition: For three of the four quarters during the year, institutional reports were not completed and submitted and therefore, also not publicly posted to the School's website. For all four quarters of the year, student quarterly reports were not completed and publicly posted to the School's website. The annual report was completed, but not publicly posted to the School's website. Cause: The School noted there was a misunderstanding of the HEERF reporting requirements, as only one draw down occurred for each of the student and institutional expenditures during the year. The drawdowns occurred in the last month of the fiscal year. Effect: The School is out of compliance with the Department's reporting requirements. Questioned Costs: None. Recommendation: The School should ensure it keeps up to date on the Department?s HEERF guidance and ensure that reporting is done accurately and timely. Management Response: Management agrees with the recommendation and plans to post all reports and put in place procedures to remain in compliance with reporting timeliness.