FAC Explorer

Audit 309770

FY End
2023-09-30
Total Expended
$2.24M
Findings
2
Programs
3
Organization: American Academy McAllister Institute of Funeral Service, Inc. (NY)
Year: 2023 Accepted: 2024-06-25
Auditor: Cohnreznick LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401872 2023-001 Significant Deficiency Yes N
978314 2023-001 Significant Deficiency Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans (direct Loans) $1.58M Yes 1
84.063 Federal Pell Grant Program (pell) $621,358 Yes 0
84.245 Higher Education Emergency Relief Funds - Student Portion $38,758 - 0

Contacts

Name Title Type
L7GDRSYKXMA1 Donald Cymbor Auditee
2127571190 Joseph Arnone Auditor
No contacts on file

Notes to SEFA

Title: LOANS OUTSTANDING Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the American Academy McAllister Institute of Funeral Service, Inc. (the "Institute") under programs of the federal government for the year ended September 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 of Federal Awards ("Uniform Guidance"). Because the Schedule presents only a selected portion of the operations of the Institute, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Institute. De Minimis Rate Used: N Rate Explanation: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Unform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The Institute elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The Institute is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the Institute's basic financial statements. It is not practical to determine the balance of loans outstanding to students and former students of the Institute under these programs as of September 30, 2023.

Finding Details

Finding 2023-001
Item 2023-001 Federal Direct Loan Program Student Notification (Significant Deficiency) U.S. Department of Education Federal Direct Student Loans (Assistance Listing Number # 84.268) Compliance requirement: Special Tests and Provisions Criteria According to the Federal Register (34 CFR 668.165 (a)(3)), an institution must provide notice to a participating student no earlier than 30 days before, and no later than seven days after, crediting the student's account with Federal Direct Loan Program proceeds at the institution, if the institution does not receive affirmative confirmation from the student. Condition We noted that the Institute did not send out the required notifications regarding Federal Direct Loan Program proceeds that had been credited to participating students' accounts within prescribed timeframes in accordance with U.S. Department of Education regulations. Cause These findings appear to be due to a deficiency in internal controls. Effect or Potential Effect The effect of these findings is noncompliance with U.S. Department of Education regulations regarding special tests and provisions. Questioned Costs - None Context A total of 37 students who were credited with Federal Direct Loan Program proceeds during the year were included in the randomly selected sample of 40 participating students. Our testing noted that in the Fall and Spring semesters none of the students with Federal Direct Loan Program proceeds credited to their account were provided with the required notifications. Identification as a Repeat Finding - Yes, repeating finding of 2022-005 Recommendation We recommended in the prior year for the Institute to review and revise its procedures and to put controls in place to ensure required notifications regarding Federal Direct Loan Program proceeds are provided to participating students timely. Views of Responsible Officials and Planned Corrective Actions We agree with both the finding and the recommendation. In the Summer 2023 semester, a system was implemented to send out the required notifications regarding Federal Direct Loan Program proceeds that have been applied to a participating student's account.
Finding 2023-001
Item 2023-001 Federal Direct Loan Program Student Notification (Significant Deficiency) U.S. Department of Education Federal Direct Student Loans (Assistance Listing Number # 84.268) Compliance requirement: Special Tests and Provisions Criteria According to the Federal Register (34 CFR 668.165 (a)(3)), an institution must provide notice to a participating student no earlier than 30 days before, and no later than seven days after, crediting the student's account with Federal Direct Loan Program proceeds at the institution, if the institution does not receive affirmative confirmation from the student. Condition We noted that the Institute did not send out the required notifications regarding Federal Direct Loan Program proceeds that had been credited to participating students' accounts within prescribed timeframes in accordance with U.S. Department of Education regulations. Cause These findings appear to be due to a deficiency in internal controls. Effect or Potential Effect The effect of these findings is noncompliance with U.S. Department of Education regulations regarding special tests and provisions. Questioned Costs - None Context A total of 37 students who were credited with Federal Direct Loan Program proceeds during the year were included in the randomly selected sample of 40 participating students. Our testing noted that in the Fall and Spring semesters none of the students with Federal Direct Loan Program proceeds credited to their account were provided with the required notifications. Identification as a Repeat Finding - Yes, repeating finding of 2022-005 Recommendation We recommended in the prior year for the Institute to review and revise its procedures and to put controls in place to ensure required notifications regarding Federal Direct Loan Program proceeds are provided to participating students timely. Views of Responsible Officials and Planned Corrective Actions We agree with both the finding and the recommendation. In the Summer 2023 semester, a system was implemented to send out the required notifications regarding Federal Direct Loan Program proceeds that have been applied to a participating student's account.