FAC Explorer

Audit 315742

FY End
2023-06-30
Total Expended
$202.78M
Findings
2
Programs
4
Organization: Lake Erie College of Osteopathic Medicine (PA)
Year: 2023 Accepted: 2024-07-23
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
479212 2023-001 Material Weakness - N
1055654 2023-001 Material Weakness - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $194.41M Yes 1
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $5.80M Yes 0
93.732 Mental and Behavioral Health Education and Training Grants $1.63M Yes 0
93.969 Pphf Geriatric Education Centers $941,677 - 0

Contacts

Name Title Type
EFW7E1WGUFW1 Steve Inman Auditee
8148688258 James Raley Auditor
No contacts on file

Notes to SEFA

Title: 1. 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Lake Erie College of Osteopathic Medicine's (A Wholly Owned Subsidiary of Millcreek Health System, Inc. d/b/a LECOM Health) (the College) 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 College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College.
Title: 3. Student Loan Program 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate. The total loans granted under the Federal Direct Student Loan Program, which were not made by the College, but were received by its students, were approximately $194,400,000 for the year ended June 30, 2023.
Title: 5. Restatement of Previously Issued Schedule of Expenditures of Federal Awards 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. Pass-through entity identifying numbers are presented where available. De Minimis Rate Used: Y Rate Explanation: The College has elected to use the 10% de minimis indirect cost rate. Subsequent to the issuance of the Report on Federal Awards for the year ended June 30, 2023, the College identified an omission of one federal grant from the schedule of expenditures of federal awards. The difference between this report and the report previously issued includes addition of $5,804,472 in funding received from the U.S. Department of Health and Human Services under Assistance Listing Number (ALN) 93.323 – Epidemiology and Laboratory Capacity for Infectious Diseases. In addition, ALN 93.323 was tested as a major program and a material weakness, finding 2023-002, was reported in the Financial Statement Findings Required to be Reported in Accordance With Government Auditing Standards section of the schedule of findings and questioned costs.

Finding Details

Finding 2023-001
Finding 2023-001: Material Weakness in Internal Control Over Compliance Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Compliance Requirement: Special Tests and Provisions Assistance Listing Number: 84.268 Federal Award Year: June 30, 2023 Criteria: Title IV regulations (34 CFR Section 685.309(b)) require that upon receipt of an enrollment from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution 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 institution, 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 institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The College did not notify the National Student Loan Data System (NSLDS) in a timely manner for 24 students with status changes in our sample of 25 students. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The College’s procedures for reporting all students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify the students enrollment status, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the College review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the College. Management Response: Management concurs with the finding.
Finding 2023-001
Finding 2023-001: Material Weakness in Internal Control Over Compliance Federal Program: Student Financial Assistance Cluster, Federal Direct Student Loans Federal Agency: U.S. Department of Education Compliance Requirement: Special Tests and Provisions Assistance Listing Number: 84.268 Federal Award Year: June 30, 2023 Criteria: Title IV regulations (34 CFR Section 685.309(b)) require that upon receipt of an enrollment from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution 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 institution, 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 institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: The College did not notify the National Student Loan Data System (NSLDS) in a timely manner for 24 students with status changes in our sample of 25 students. The sample was not a statistically valid sample. Questioned Costs: There are no questioned costs associated with this finding. Cause: The College’s procedures for reporting all students were not designed appropriately in order to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify the students enrollment status, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: We recommend that the College review its procedures for student status changes and NSLDS notifications to ensure there are follow-up and review procedures being performed for all students with status changes at the College. Management Response: Management concurs with the finding.