FAC Explorer

Audit 296451

FY End
2023-06-30
Total Expended
$10.24M
Findings
6
Programs
6
Organization: Pennsylvania Institute of Technology and Subsidiaries (PA)
Year: 2023 Accepted: 2024-03-21
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
382873 2023-001 - - E
382874 2023-002 Significant Deficiency - N
382875 2023-002 Significant Deficiency - N
959315 2023-001 - - E
959316 2023-002 Significant Deficiency - N
959317 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.08M Yes 2
84.063 Federal Pell Grant Program $3.31M Yes 1
84.042 Trio_student Support Services $380,707 - 0
84.425 Education Stabilization Fund $322,823 - 0
84.007 Federal Supplemental Educational Opportunity Grants $90,000 Yes 0
84.033 Federal Work-Study Program $60,000 Yes 0

Contacts

Name Title Type
QT9HLLQ1T2Y1 Annamarie Cassidy Auditee
6108921010 Caroline Hipple Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pennsylvania Institute of Technology and Subsidiaries (the College). Under programs of the federal government for the year ended June 30, 2023. The information in the 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). Because this Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College. 2. Summary of Significant Accounting Policies 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 types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 3. Indirect Cost Rate The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pennsylvania Institute of Technology and Subsidiaries (the College). Under programs of the federal government for the year ended June 30, 2023. The information in the 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). Because this Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College.
Title: Summary of Significant Accounting Policies Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pennsylvania Institute of Technology and Subsidiaries (the College). Under programs of the federal government for the year ended June 30, 2023. The information in the 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). Because this Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College. 2. Summary of Significant Accounting Policies 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 types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 3. Indirect Cost Rate The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. 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 types of expenditures are not allowed or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: 1. Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Pennsylvania Institute of Technology and Subsidiaries (the College). Under programs of the federal government for the year ended June 30, 2023. The information in the 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). Because this Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College. 2. Summary of Significant Accounting Policies 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 types of expenditures are not allowed or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: 3. Indirect Cost Rate The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2023-001
Finding 2023-001: Eligibility for Subsidized Direct Loans ALN Number: 84.268 Federal Program: Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: A Direct Subsidized Loan borrower must demonstrate financial need in accordance with Title IV, Part F of the Act [34 CFR 685.200(a)(2)(i)]. Condition/Context: For 2 of the 40 students tested for eligibility, the students received subsidized direct loan disbursements when their financial need was $0 based on the student expected family contribution (EFC) being in excess of the cost of attendance. Review of the College's student population for the 2022-2023 academic year was completed and it determined there were no other students that received need based financial aid in excess of their financial need. Cause: Determination of student aid for their first term was completed with the EFC indicating $0 in the student aid packaging system in error along with the incorrect amount of weeks and months in academic year, resulting in the student receiving a subsidized loan disbursement. In the following student semester, the EFC, weeks, and months in academic year was corrected in the system and the student award for that term did not disburse a subsidized loan disbursement. Effect: Students received subsidized direct loans when not eligible based on student financial need. The students tested could have been awarded unsubsidized direct loans in accordance with the eligibility for unsubsidized direct loans. Questioned Costs: Questioned costs for the two students tested is $2,667 of subsidized direct loans. Sample was not statistically valid. Recommendation: The College should ensure that all EFC information from the ISIR is entered in to the student aid packaging system before the student aid award is calculated. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. In review of the student records, the student aid packaging system at the time of aid determination indicated an EFC of $0 and months and weeks in academic year being zero. However, the FASFA was completed and the ISIR EFC amount was known at the time of the packaging and loan issued due to the cost of attendance not calculating correctly at time of packaging. The student aid packaging system parameters ensure that if need amount is $0 the system will stop a subsidized direct loan from being awarded. The weeks and months in academic year information was corrected in their next term and a subsidized loan was not awarded. Error appears related to only their first loan issued.  The allowance of subsidized loans was due to user error because the months and weeks enrolled in academic year were showing as zero. The College has re-trained its staff on the sequence of processing and ensure that inputs for months and weeks in academic year are correct. The College also worked with their student information system to ensure the set up for academic year definitions for cost of attendance calculations are set to be automatic for proper calculations. The College made an internal report in order to review all student financial need for the 2022-2023 academic year in February 2024 and determined there were no additional students awarded need based aid in excess of their financial need. The College will continue to use this report every term to review need. For the 2 students that received subsidized loans in error, their loans were refunded in March 2024.
Finding 2023-002
Finding 2023-002: Enrollment Reporting - Significant Deficiency ALN Number: 84.063; 84.268 Federal Program: Federal Pell Grant Program; Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P063P220616; P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and certify 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. [Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309] Condition/Context: For 1 of the 25 students tested, the effective date of the change in status of the campus level reporting and program level reporting in the NSLDS did not agree with College's records. Cause: The date of determination of the change in student status was entered as the effective date of the change in status in error. Effect: The effective date of the change in student status to withdrawn was reported in error to the NSLDS. Questioned Costs: There are no questioned costs associated with this finding. Sample was not statistically valid. Recommendation: The College should have someone independent of the preparer review the NSLDS roster file to check the effective date of change in status is in agreement with the College's records. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. Academic Records Office personnel were re-trained. Also, a report has been written to be run after the Student Status Confirmation Report (SSCR) procedure is run in the student financial aid system, that flags when a "Last Date of Attendance (LDA)" and NSLDS Withdrawal Date differ. Those cases can be troubleshooted and fixed, the SSCR rerun, and that updated file uploaded.
Finding 2023-002
Finding 2023-002: Enrollment Reporting - Significant Deficiency ALN Number: 84.063; 84.268 Federal Program: Federal Pell Grant Program; Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P063P220616; P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and certify 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. [Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309] Condition/Context: For 1 of the 25 students tested, the effective date of the change in status of the campus level reporting and program level reporting in the NSLDS did not agree with College's records. Cause: The date of determination of the change in student status was entered as the effective date of the change in status in error. Effect: The effective date of the change in student status to withdrawn was reported in error to the NSLDS. Questioned Costs: There are no questioned costs associated with this finding. Sample was not statistically valid. Recommendation: The College should have someone independent of the preparer review the NSLDS roster file to check the effective date of change in status is in agreement with the College's records. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. Academic Records Office personnel were re-trained. Also, a report has been written to be run after the Student Status Confirmation Report (SSCR) procedure is run in the student financial aid system, that flags when a "Last Date of Attendance (LDA)" and NSLDS Withdrawal Date differ. Those cases can be troubleshooted and fixed, the SSCR rerun, and that updated file uploaded.
Finding 2023-001
Finding 2023-001: Eligibility for Subsidized Direct Loans ALN Number: 84.268 Federal Program: Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: A Direct Subsidized Loan borrower must demonstrate financial need in accordance with Title IV, Part F of the Act [34 CFR 685.200(a)(2)(i)]. Condition/Context: For 2 of the 40 students tested for eligibility, the students received subsidized direct loan disbursements when their financial need was $0 based on the student expected family contribution (EFC) being in excess of the cost of attendance. Review of the College's student population for the 2022-2023 academic year was completed and it determined there were no other students that received need based financial aid in excess of their financial need. Cause: Determination of student aid for their first term was completed with the EFC indicating $0 in the student aid packaging system in error along with the incorrect amount of weeks and months in academic year, resulting in the student receiving a subsidized loan disbursement. In the following student semester, the EFC, weeks, and months in academic year was corrected in the system and the student award for that term did not disburse a subsidized loan disbursement. Effect: Students received subsidized direct loans when not eligible based on student financial need. The students tested could have been awarded unsubsidized direct loans in accordance with the eligibility for unsubsidized direct loans. Questioned Costs: Questioned costs for the two students tested is $2,667 of subsidized direct loans. Sample was not statistically valid. Recommendation: The College should ensure that all EFC information from the ISIR is entered in to the student aid packaging system before the student aid award is calculated. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. In review of the student records, the student aid packaging system at the time of aid determination indicated an EFC of $0 and months and weeks in academic year being zero. However, the FASFA was completed and the ISIR EFC amount was known at the time of the packaging and loan issued due to the cost of attendance not calculating correctly at time of packaging. The student aid packaging system parameters ensure that if need amount is $0 the system will stop a subsidized direct loan from being awarded. The weeks and months in academic year information was corrected in their next term and a subsidized loan was not awarded. Error appears related to only their first loan issued.  The allowance of subsidized loans was due to user error because the months and weeks enrolled in academic year were showing as zero. The College has re-trained its staff on the sequence of processing and ensure that inputs for months and weeks in academic year are correct. The College also worked with their student information system to ensure the set up for academic year definitions for cost of attendance calculations are set to be automatic for proper calculations. The College made an internal report in order to review all student financial need for the 2022-2023 academic year in February 2024 and determined there were no additional students awarded need based aid in excess of their financial need. The College will continue to use this report every term to review need. For the 2 students that received subsidized loans in error, their loans were refunded in March 2024.
Finding 2023-002
Finding 2023-002: Enrollment Reporting - Significant Deficiency ALN Number: 84.063; 84.268 Federal Program: Federal Pell Grant Program; Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P063P220616; P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and certify 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. [Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309] Condition/Context: For 1 of the 25 students tested, the effective date of the change in status of the campus level reporting and program level reporting in the NSLDS did not agree with College's records. Cause: The date of determination of the change in student status was entered as the effective date of the change in status in error. Effect: The effective date of the change in student status to withdrawn was reported in error to the NSLDS. Questioned Costs: There are no questioned costs associated with this finding. Sample was not statistically valid. Recommendation: The College should have someone independent of the preparer review the NSLDS roster file to check the effective date of change in status is in agreement with the College's records. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. Academic Records Office personnel were re-trained. Also, a report has been written to be run after the Student Status Confirmation Report (SSCR) procedure is run in the student financial aid system, that flags when a "Last Date of Attendance (LDA)" and NSLDS Withdrawal Date differ. Those cases can be troubleshooted and fixed, the SSCR rerun, and that updated file uploaded.
Finding 2023-002
Finding 2023-002: Enrollment Reporting - Significant Deficiency ALN Number: 84.063; 84.268 Federal Program: Federal Pell Grant Program; Federal Direct Student Loans Federal Agency: U.S. Department of Education Federal Award Number: P063P220616; P268K230616 Federal Award Year: July 1, 2022 - June 30, 2023 Pass-Through Entity: Not applicable Repeat Finding: Not applicable Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and certify 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. [Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309] Condition/Context: For 1 of the 25 students tested, the effective date of the change in status of the campus level reporting and program level reporting in the NSLDS did not agree with College's records. Cause: The date of determination of the change in student status was entered as the effective date of the change in status in error. Effect: The effective date of the change in student status to withdrawn was reported in error to the NSLDS. Questioned Costs: There are no questioned costs associated with this finding. Sample was not statistically valid. Recommendation: The College should have someone independent of the preparer review the NSLDS roster file to check the effective date of change in status is in agreement with the College's records. Views of Responsible Officials and Planned Corrective Actions: The College agrees with this finding. Academic Records Office personnel were re-trained. Also, a report has been written to be run after the Student Status Confirmation Report (SSCR) procedure is run in the student financial aid system, that flags when a "Last Date of Attendance (LDA)" and NSLDS Withdrawal Date differ. Those cases can be troubleshooted and fixed, the SSCR rerun, and that updated file uploaded.