FAC Explorer

Audit 312821

FY End
2022-08-31
Total Expended
$845,580
Findings
2
Programs
2
Organization: Institute of Taoist Education and Acupuncture, INC (CO)
Year: 2022 Accepted: 2023-05-16
Auditor: Hinkle & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
446803 2022-001 Significant Deficiency - P
1023245 2022-001 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $825,446 Yes 1
84.425 Education Stabilization Fund $20,134 - 0

Contacts

Name Title Type
W9CWPV4QMAK6 Kathy Knaus Auditee
7208908922 Jim Hinkle Auditor
No contacts on file

Notes to SEFA

Title: GSA_MIGRATION Accounting Policies: The Schedule of Expenditures of Federal Awards (Schedule) is prepared on the accrual basis ofaccounting and includes the federal loan activity of the Institute of Taoist Education andAcupuncture, Inc. (ITEA). The information in this schedule is presented in accordance with therequirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform AdministrativeRequirements, Cost Principles, and Audit Requirements for Federal Awards (UniformGuidance). Some amounts presented in this schedule may differ from amounts presented in, orused in the preparation of, the financial statements.Expenditures reported on the Schedule are reported on the accrual basis of accounting. Suchexpenditures 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: The auditee did not use the de minimis cost rate. ITEA currently participates in the Federal Direct Student Loan Program (Direct Loan Program). The U.S. Department of Education makes loans to enable a student or parent to pay the costs of the students attendance at a postsecondary school. The Direct Loan Program enables an eligible student or parent to obtain a loan to pay for the students cost of attendance directly from the U.S. Department of Education rather than through private lenders. ITEA administers the origination and disbursement of loans to eligible students or parents. ITEA is not responsible for the collection of these loans.

Finding Details

Finding 2022-001
CORRECTIVE ACTION PLANAudit Period: September 1, 2021, to August 31, 2022Finding 2022-001: Student Financial Assistance Cluster- Calculating Return of Title IV FundsThe Institution relied on their previous 3rd party servicer who processed their R2T4 forms. The Institution was not satisfied with their services and terminated that company and subsequently hired a new 3rd party service provider. It was discovered during the transition of service providers, that 2 of the R2T4 forms in our sample were not correctly calculated by their previous third-party servicer.Recommendation:We recommend the institution to update the incorrect R2T4 worksheets and follow up accordingly as required and to work with their new 3rd party service provider to determine effective dates at which 60% completion is achieved during each enrollment session.Management Response:Management agrees with the finding and will implement the recommendations immediately.Action Taken or Planned:Management has met with their current 3rd party service provider and have corrected the incorrect R2T4 worksheets and will follow up as required. Management has also met with their 3rd party service provider to determine effective dates at which 60% completion is achieved during each enrollment session.
Finding 2022-001
CORRECTIVE ACTION PLANAudit Period: September 1, 2021, to August 31, 2022Finding 2022-001: Student Financial Assistance Cluster- Calculating Return of Title IV FundsThe Institution relied on their previous 3rd party servicer who processed their R2T4 forms. The Institution was not satisfied with their services and terminated that company and subsequently hired a new 3rd party service provider. It was discovered during the transition of service providers, that 2 of the R2T4 forms in our sample were not correctly calculated by their previous third-party servicer.Recommendation:We recommend the institution to update the incorrect R2T4 worksheets and follow up accordingly as required and to work with their new 3rd party service provider to determine effective dates at which 60% completion is achieved during each enrollment session.Management Response:Management agrees with the finding and will implement the recommendations immediately.Action Taken or Planned:Management has met with their current 3rd party service provider and have corrected the incorrect R2T4 worksheets and will follow up as required. Management has also met with their 3rd party service provider to determine effective dates at which 60% completion is achieved during each enrollment session.