FAC Explorer

Audit 298459

FY End
2023-06-30
Total Expended
$1.51M
Findings
2
Programs
5
Organization: Delaware College of Art and Design (DE)
Year: 2023 Accepted: 2024-03-27
Auditor: Belfint Lyons & Shuman P A

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
386090 2023-002 Significant Deficiency - N
962532 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.13M Yes 0
84.063 Federal Pell Grant Program $247,477 Yes 0
84.425 Education Stabilization Fund $90,164 - 0
84.007 Federal Supplemental Educational Opportunity Grants $20,179 Yes 1
84.033 Federal Work-Study Program $17,789 Yes 0

Contacts

Name Title Type
YKJYE1SFHSR7 Rich Savona Auditee
3026228000 Jonathan Moll Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Delaware College of Art and Design 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 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 Delaware College of Art and Design, it is not intended to, and does not, present the financial position, change in net assets or cash flows of the Delaware College of Art and Design. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Finding 2023-002
United States Department of Education Federal Program: Student Financial Assistance Cluster Reference Number: 2023-002 Federal Award Identifiers: P007A229034; P033A229034; P063P226291; P268K236291 Type of Finding: Non-Compliance and Significant Deficiency in Internal Control Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds Condition: One of three student withdrawals selected for testing required a return of unearned Title IV funds. This student’s unearned Title IV Funds were not returned. Context: The College correctly calculated the unearned Title IV Funds upon the student’s withdrawal. The College did not process the return of funds in Common Origination and Disbursements. Fifteen students that received Title IV funds withdrew during the year ended June 30, 2023. Criteria: 34 CFR 668.22(a)(1) through (a)(5) requires the College to calculate and return unearned Title IV Funds. 34 CFR 668.173(b) requires the College to return the unearned Title IV Funds no later than 45 days after the date the College determines that the student withdrew. Questioned Costs: $3,359 of unearned Title IV Funds for one student were not reported or returned. Cause: A shortage of staff resulted in the control deficiency. Effect: The College did not timely report return of unearned Title IV Fund resulting in an overstatement of the students’ federal loan balances. Recommendation: We recommend management implement procedures to ensure returns of Title IV Funds are timely calculated and processed upon student withdrawal.
Finding 2023-002
United States Department of Education Federal Program: Student Financial Assistance Cluster Reference Number: 2023-002 Federal Award Identifiers: P007A229034; P033A229034; P063P226291; P268K236291 Type of Finding: Non-Compliance and Significant Deficiency in Internal Control Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds Condition: One of three student withdrawals selected for testing required a return of unearned Title IV funds. This student’s unearned Title IV Funds were not returned. Context: The College correctly calculated the unearned Title IV Funds upon the student’s withdrawal. The College did not process the return of funds in Common Origination and Disbursements. Fifteen students that received Title IV funds withdrew during the year ended June 30, 2023. Criteria: 34 CFR 668.22(a)(1) through (a)(5) requires the College to calculate and return unearned Title IV Funds. 34 CFR 668.173(b) requires the College to return the unearned Title IV Funds no later than 45 days after the date the College determines that the student withdrew. Questioned Costs: $3,359 of unearned Title IV Funds for one student were not reported or returned. Cause: A shortage of staff resulted in the control deficiency. Effect: The College did not timely report return of unearned Title IV Fund resulting in an overstatement of the students’ federal loan balances. Recommendation: We recommend management implement procedures to ensure returns of Title IV Funds are timely calculated and processed upon student withdrawal.