FAC Explorer

Audit 299686

FY End
2023-06-30
Total Expended
$1.63M
Findings
10
Programs
6
Organization: Pennsylvania Academy of the Fine Arts (PA)
Year: 2023 Accepted: 2024-03-28
Auditor: Tait Weller

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
387568 2023-002 Significant Deficiency - C
387569 2023-003 Significant Deficiency Yes L
387570 2023-003 Significant Deficiency Yes L
387571 2023-003 Significant Deficiency Yes L
387572 2023-003 Significant Deficiency Yes L
964010 2023-002 Significant Deficiency - C
964011 2023-003 Significant Deficiency Yes L
964012 2023-003 Significant Deficiency Yes L
964013 2023-003 Significant Deficiency Yes L
964014 2023-003 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.29M Yes 2
84.063 Federal Pell Grant Program $198,806 Yes 1
45.024 Promotion of the Arts_grants to Organizations and Individuals $40,000 - 0
45.301 Museums for America $36,000 - 0
84.033 Federal Work-Study Program $24,113 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $16,199 Yes 1

Contacts

Name Title Type
RWXKJL2J4KL7 Roni Plousis Auditee
4842281412 Karen Vento Auditor
No contacts on file

Notes to SEFA

Title: GENERAL INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: PAFA has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards presents the activity of all federal award programs of Pennsylvania Academy of the Fine Arts (“PAFA”). All awards received directly from federal agencies as well as financial assistance passed through other governmental agencies or non-profit organizations are included on the schedule.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: PAFA has not elected to use the 10% de minimis indirect cost rate. PAFA did not pass any awards through to subrecipients.
Title: MATCHING CONTRIBUTIONS Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: PAFA has not elected to use the 10% de minimis indirect cost rate. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards do not include matching contributions made by the PAFA. PAFA made matching contributions to the following federal awards: Federal Work-Study Program $7,596 Promotion of the Arts grants to organizations and individuals 60,000 Federal Supplemental Educational Opportunity Grants 5,063 $72,659
Title: FEDERAL DIRECT STUDENT LOANS Accounting Policies: The accompanying schedule of expenditures of federal awards is presented using the accrual basis of accounting. 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). Therefore, some amounts presented in this schedule may differ from amounts presented in or used in the preparation of the general-purpose financial statements. De Minimis Rate Used: N Rate Explanation: PAFA has not elected to use the 10% de minimis indirect cost rate. The Federal Direct Student Loans (Federal CFDA Number 84.268) are comprised of the following types of loans: Plus Loans $305,287 Stafford Loans 203,543 Unsubsidized Stafford Loans 783,890 Total Federal Direct Student Loans $1,292,720

Finding Details

Finding 2023-002
Federal Award Findings and Questioned Costs Finding 2023-002: No SAS Reconciliations – Significant Deficiency Federal Program: Student Financial Aid Cluster – Federal Direct Loan Program Federal Agency: Department of Education CFDA Number: 84.268 Criteria: 34 CFR 668.162(b)(5) states that on a monthly basis the Academy must reconcile institutional records with direct loan fund records received from the Secretary and direct loan disbursement records submitted to and accepted by the Secretary. Condition: Documentation that the required monthly School Account Statement (SAS) reconciliations were completed was not available for fiscal year 2023. Questioned Costs: None Cause: The Academy did not perform the required SAS reconciliations monthly as required. Effect: Not performing the SAS reconciliation could result in variances between the Academy’s records and the U.S. Department of Education records, which could impact the student. Identification of Repeat Findings: This is not a repeat finding. Recommendation: The Academy should review and revise its controls over compliance to ensure that SAS reconciliations are performed monthly. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-002
Federal Award Findings and Questioned Costs Finding 2023-002: No SAS Reconciliations – Significant Deficiency Federal Program: Student Financial Aid Cluster – Federal Direct Loan Program Federal Agency: Department of Education CFDA Number: 84.268 Criteria: 34 CFR 668.162(b)(5) states that on a monthly basis the Academy must reconcile institutional records with direct loan fund records received from the Secretary and direct loan disbursement records submitted to and accepted by the Secretary. Condition: Documentation that the required monthly School Account Statement (SAS) reconciliations were completed was not available for fiscal year 2023. Questioned Costs: None Cause: The Academy did not perform the required SAS reconciliations monthly as required. Effect: Not performing the SAS reconciliation could result in variances between the Academy’s records and the U.S. Department of Education records, which could impact the student. Identification of Repeat Findings: This is not a repeat finding. Recommendation: The Academy should review and revise its controls over compliance to ensure that SAS reconciliations are performed monthly. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.
Finding 2023-003
Finding 2023-003: Special Reporting (Repeat Finding) Federal Program: Student Financial Aid Cluster – Significant Deficiency Federal Agency: Department of Education CFDA Number: 84.007, 84.063, 84.268, 84.033 Criteria: The Academy is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The Academy incorrectly reported the Federal Work Study awards and information on tuition and fees in the FISAP submitted to the Department of Education. Questioned Costs: None Cause: The FISAP was not reconciled and reviewed prior to filing. Effect: The Academy did not operate in accordance with the special reporting compliance requirement. Recommendation: The Academy should develop procedures to have the financial aid and financial accounting information systems reconciled on a monthly basis. These reconciliation will ensure accurate reporting during periods of turnover of key personnel. Views of Responsible Officials: Management agrees with this finding.