Audit 307535

FY End
2023-08-31
Total Expended
$1.17M
Findings
14
Programs
3
Organization: Gratz College (PA)
Year: 2023 Accepted: 2024-05-30
Auditor: Kreischer Miller

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
398930 2023-001 - Yes L
398931 2023-002 Significant Deficiency Yes C
398932 2023-001 - Yes L
398933 2023-002 Significant Deficiency Yes C
398934 2023-003 - Yes C
398935 2023-001 - Yes L
398936 2023-002 Significant Deficiency Yes C
975372 2023-001 - Yes L
975373 2023-002 Significant Deficiency Yes C
975374 2023-001 - Yes L
975375 2023-002 Significant Deficiency Yes C
975376 2023-003 - Yes C
975377 2023-001 - Yes L
975378 2023-002 Significant Deficiency Yes C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.12M Yes 0
84.425 Education Stabilization Fund $37,516 Yes 2
84.063 Federal Pell Grant Program $1,479 Yes 0

Contacts

Name Title Type
PHA8ECZ7E2E3 Thomas R. Cipriano, Jr. Auditee
2156357300 Elizabeth Pilacik 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 are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: Gratz College has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the College under programs of the federal government for the year ended August 31, 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 College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.

Finding Details

Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-003 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system, and had a balance of unspent funds at August 31, 2023. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Identification of a Repeat Finding: 2022-006 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-003 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Condition: The College withdrew all funds remaining in the G5 grants system, and had a balance of unspent funds at August 31, 2023. Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Identification of a Repeat Finding: 2022-006 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.
Finding 2023-001 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425F, and 84.425N Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Reporting Type of Finding: Noncompliance Criteria: The College must publicly post quarterly forms on its website for the specific subprograms of the federal award. Condition: The College posted quarterly reports to its website. However, the College was unable to provide documentation to support the timely posting of these reports. Cause: The College failed to develop and implement procedures to perform the reporting requirements. Effect: The College is noncompliant with the ESF program requirements. Context: 1 out of 2 quarterly reports selected for testing Identification of a Repeat Finding: 2022-002. Recommendation: We recommend that the College develop procedures and related controls over the reporting requirements of the ESF program.
Finding 2023-002 Federal Assistance Listing Number: 84.425 Subprogram Number(s): 84.425E, 84.425N, and 84.425F Federal Agency: U.S. Department of Education Program Name: Education Stabilization Fund Type(s) of Compliance Requirements: Cash Management Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Entities must minimize the time elapsing between the transfer of funds from the federal awarding agency and the disbursement of funds by the entity. Disbursements of student awards under the Student Aid Portion of HEERF should be disbursed within 15 calendar days of the drawdown form Department of Education's G5 grants system. Disbursements of funds from the Fund for the Improvement of Postsecondary Education (FIPSE) Formula Grant should be disbursed within 3 calendar days of the drawdown from G5. Condition: The College withdrew the funds and did not disburse the funds until 537 days later (Institutional Aid Portion (CARES I & CARES II)), 609 days later (FIPSE – Student Aid), and 508 days later (Institutional Aid Portion (CARES III)). Cause: The College withdrew all funds remaining under each award as of December 21, 2021 with the understanding that the funds were expiring as of December 31, 2021. Effect: The College is noncompliant with the requirements under Cash Management. Context: 10 sample selections ($19,034) out of a sample of 10 items from a population of 34 items ($47,147) were tested. Identification of a Repeat Finding: 2022-005 Recommendation: We recommend that the College develop and implement procedures to ensure that federal funds are administered in accordance with program compliance requirements.