Audit 290571

FY End
2023-05-31
Total Expended
$32.02M
Findings
2
Programs
7
Year: 2023 Accepted: 2024-02-15

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
369347 2023-001 Significant Deficiency - N
945789 2023-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $25.50M Yes 1
84.063 Federal Pell Grant Program $5.35M Yes 0
84.038 Federal Perkins Loan Program $586,389 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $323,965 Yes 0
84.033 Federal Work-Study Program $245,932 Yes 0
94.006 Americorps $15,387 - 0
84.408 Postsecondary Education Scholarships for Veteran's Dependents $6,502 Yes 0

Contacts

Name Title Type
NN1RNMLNV5R1 Maria Krupin Auditee
8454511385 Edward Miller Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of The Culinary Institute of America (the “College”) for the year ended May 31, 2023 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). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, change in net assets, or cash flows of the College. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of The Culinary Institute of America (the “College”) for the year ended May 31, 2023 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). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, change in net assets, or cash flows of the College. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements.
Title: NOTE 2 - ADMINISTRATIVE COSTS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of The Culinary Institute of America (the “College”) for the year ended May 31, 2023 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). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, change in net assets, or cash flows of the College. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. The College has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance.
Title: NOTE 3 - STUDENT LOAN PROGRAMS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal grant activity of The Culinary Institute of America (the “College”) for the year ended May 31, 2023 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). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, change in net assets, or cash flows of the College. Therefore, some amounts presented in this Schedule may differ from amounts presented in, or used in the preparation of, the basic consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance. (a) Federal Perkins Loan Program The College participates in the Federal Perkins Loan Program. No loans were disbursed during the year ended May 31, 2023. The outstanding balance of loans receivable under this program totaled $246,647 at May 31, 2023. (b) Federal Direct Student Loan Program During the year ended May 31, 2023, the College processed $25,496,301 of new loans under the Federal Direct Student Loan Program (which includes subsidized and unsubsidized Federal Direct Stafford Loans, Federal Direct Parents’ Loans for Undergraduate Students, and Graduate Plus Direct Loans). With respect to the Federal District Student Loan program, the College is only responsible for the performance of certain administrative duties; therefore, the College’s consolidated financial statements do not include any amounts relative to these loans. The cumulative amount of total loans guaranteed and outstanding at May 31, 2023 is impracticable to determine.

Finding Details

Criteria: Pursuant to Federal Register Volume 85, Number 134, an institution must submit Direct Loan disbursement records to the Common Origination and Disbursement (“COD”) system no later than 15 days after making the disbursement or becoming aware of the need to adjust a previously reported disbursement. As defined in 34 CFR 668.164(a), the disbursement date is the date that a school credits a student’s account at the school or pays a student or parent borrower directly with Title IV funds received from the U.S. Department of Education or with institutional funds in advance of receiving Title IV program funds. Condition and Context: From a selection of forty (40) Direct Loan disbursements tested, we identified seven (7) disbursements involving three (3) students, that were reported to the COD system more than 15 days after the respective disbursement dates. Cause: The College maintained list creation rules to create lists of students with federal grants. The College discovered that the rules failed to pull students registered for at least six (6) credits when creating the lists. Effect: Two hundred and five (205) Direct Loan disbursements were not identified and submitted in the September 15, 2022 submission. Once the error was uncovered, the students were reported on the October 6, 2022 submission. Accordingly, the students were not reported to the COD system within the 15 day timeframe stipulated in Federal Register Volume 85, Number 134. Questioned Costs: None noted. Identified as a Repeat Finding: A similar finding was not reported in 2022. Recommendation: The College should review the effectiveness of its procedures governing the timely submission of Direct Loan disbursements to the COD system to ensure such records are submitted within the appropriate timeframe.
Criteria: Pursuant to Federal Register Volume 85, Number 134, an institution must submit Direct Loan disbursement records to the Common Origination and Disbursement (“COD”) system no later than 15 days after making the disbursement or becoming aware of the need to adjust a previously reported disbursement. As defined in 34 CFR 668.164(a), the disbursement date is the date that a school credits a student’s account at the school or pays a student or parent borrower directly with Title IV funds received from the U.S. Department of Education or with institutional funds in advance of receiving Title IV program funds. Condition and Context: From a selection of forty (40) Direct Loan disbursements tested, we identified seven (7) disbursements involving three (3) students, that were reported to the COD system more than 15 days after the respective disbursement dates. Cause: The College maintained list creation rules to create lists of students with federal grants. The College discovered that the rules failed to pull students registered for at least six (6) credits when creating the lists. Effect: Two hundred and five (205) Direct Loan disbursements were not identified and submitted in the September 15, 2022 submission. Once the error was uncovered, the students were reported on the October 6, 2022 submission. Accordingly, the students were not reported to the COD system within the 15 day timeframe stipulated in Federal Register Volume 85, Number 134. Questioned Costs: None noted. Identified as a Repeat Finding: A similar finding was not reported in 2022. Recommendation: The College should review the effectiveness of its procedures governing the timely submission of Direct Loan disbursements to the COD system to ensure such records are submitted within the appropriate timeframe.