Audit 300177

FY End
2023-06-30
Total Expended
$36.84M
Findings
4
Programs
3
Organization: Brooklyn Law School (NY)
Year: 2023 Accepted: 2024-03-28
Auditor: Rsm US LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
388460 2023-001 Significant Deficiency - N
388461 2023-002 Significant Deficiency - N
964902 2023-001 Significant Deficiency - N
964903 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $35.61M Yes 2
84.033 Federal Work-Study Program $456,885 Yes 0
84.425 Education Stabilization Fund $336,942 Yes 0

Contacts

Name Title Type
XHSCXMK1VCK8 Shoshanna Campbell Auditee
7187807501 Irmin Hutchinson Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on 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 allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Law School 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 the Law School under programs of the federal government for the year ended June 30, 2023. 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 Law School, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Law School.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on 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 allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Law School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. Expenditures reported on 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 allowable or limited as to reimbursement.
Title: Indirect Costs Accounting Policies: Expenditures reported on 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 allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Law School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. The Law School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Subrecipients Accounting Policies: Expenditures reported on 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 allowable or limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Law School has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance. There have been no expenditures made to subrecipients during the year ended June 30, 2023.

Finding Details

2023-001 Program Eligibility—Significant Deficiency United States Department of Education— ALN 84.268 Federal Direct Student Loans Program Criteria: Students who receive federal student aid are required to be enrolled in an eligible program. Eligible programs must be included in an institution’s accreditation and authorized by the State and the U.S. Department of Education. Condition: The Law School disbursed federal student aid to 63 students, totaling approximately $2,115,747, enrolled in an ineligible program, the Masters of Law (LL.M) program. Cause: The LL.M program was included in the Law School’s ECAR which is approved by the Department of Education. The Law School’s accreditation by the American Bar Association does not cover Programs outside of the Juris Doctorate program. As such, the LL.M program was not properly accredited and as such was not an eligible program. The ECAR was subsequently amended to remove this program. Effect: Federal student aid funds were inappropriately disbursed to students in ineligible programs which resulted in the Law School reimbursing and paying a fine to the U.S. Department of Education. Questioned Costs: $2,115,747 Context: The impact was to 63 students over a four-year period. Recommendation: We recommend the Law School review new or modified programs to ensure program eligibility requirements are met. View of Responsible Officials: The Law School agrees with the findings and disbursements have been discontinued. The Law School is working to obtain the appropriate accreditation.
2023-002 Enrollment Reporting – Significant Deficiency United States Department of Education— ALN 84.268 Federal Direct Student Loans Program Criteria: Per CFR §658.309, unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that: (i) a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address. Condition: For one out of 25 students sampled, the effective date reported in NSLDS was incorrect. For four out of 25 students sampled, the status change was not reported in NSLDS in the next enrollment report or within 30 days of the date of determination. Cause: The Law School does not have a formalized policy to address enrollment reporting for summer terms. Effect: Enrollment reporting was inaccurate. Federal loan servicers utilize this information to determine the appropriate status for repayment terms and as such, had incorrect information. Enrollment reporting was not submitted within the required time frame. Questioned Costs: None. Context: See condition above. Recommendation: We recommend the Law School enhance their procedures and formalize a written policy for all terms of enrollment reporting. View of Responsible Officials: The Law School agrees with the finding and will ensure that enrollment reporting is accurate and timely.
2023-001 Program Eligibility—Significant Deficiency United States Department of Education— ALN 84.268 Federal Direct Student Loans Program Criteria: Students who receive federal student aid are required to be enrolled in an eligible program. Eligible programs must be included in an institution’s accreditation and authorized by the State and the U.S. Department of Education. Condition: The Law School disbursed federal student aid to 63 students, totaling approximately $2,115,747, enrolled in an ineligible program, the Masters of Law (LL.M) program. Cause: The LL.M program was included in the Law School’s ECAR which is approved by the Department of Education. The Law School’s accreditation by the American Bar Association does not cover Programs outside of the Juris Doctorate program. As such, the LL.M program was not properly accredited and as such was not an eligible program. The ECAR was subsequently amended to remove this program. Effect: Federal student aid funds were inappropriately disbursed to students in ineligible programs which resulted in the Law School reimbursing and paying a fine to the U.S. Department of Education. Questioned Costs: $2,115,747 Context: The impact was to 63 students over a four-year period. Recommendation: We recommend the Law School review new or modified programs to ensure program eligibility requirements are met. View of Responsible Officials: The Law School agrees with the findings and disbursements have been discontinued. The Law School is working to obtain the appropriate accreditation.
2023-002 Enrollment Reporting – Significant Deficiency United States Department of Education— ALN 84.268 Federal Direct Student Loans Program Criteria: Per CFR §658.309, unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that: (i) a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address. Condition: For one out of 25 students sampled, the effective date reported in NSLDS was incorrect. For four out of 25 students sampled, the status change was not reported in NSLDS in the next enrollment report or within 30 days of the date of determination. Cause: The Law School does not have a formalized policy to address enrollment reporting for summer terms. Effect: Enrollment reporting was inaccurate. Federal loan servicers utilize this information to determine the appropriate status for repayment terms and as such, had incorrect information. Enrollment reporting was not submitted within the required time frame. Questioned Costs: None. Context: See condition above. Recommendation: We recommend the Law School enhance their procedures and formalize a written policy for all terms of enrollment reporting. View of Responsible Officials: The Law School agrees with the finding and will ensure that enrollment reporting is accurate and timely.