Audit 328332

FY End
2024-06-30
Total Expended
$2.57M
Findings
2
Programs
3
Year: 2024 Accepted: 2024-11-14

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
507827 2024-001 Significant Deficiency Yes E
1084269 2024-001 Significant Deficiency Yes E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.04M Yes 0
84.063 Federal Pell Grant Program $509,819 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $20,683 Yes 0

Contacts

Name Title Type
D44KX37DNUS9 Barry Lease Auditee
4123628500 Michael Wherry Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Summary of Significant Accounting Policies Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award grant activity of Pittsburgh Institute of Mortuary Science, Inc. (Institute) under programs of the federal government for the year ended June 30, 2024. 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 Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award grant activity of Pittsburgh Institute of Mortuary Science, Inc. (Institute) under programs of the federal government for the year ended June 30, 2024. 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 Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance.
Title: Note 2 - Federal Student Loans Programs Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award grant activity of Pittsburgh Institute of Mortuary Science, Inc. (Institute) under programs of the federal government for the year ended June 30, 2024. 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 Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A NOTE 2 - FEDERAL STUDENT LOANS PROGRAM Federally guaranteed loans issued to students of the Institute by financial institutions under the Federal Direct Loan (FDL) program were $2,035,118 during the year ended June 30, 2024. The amount presented represents the value of new loans awarded during the year. The Institute is responsible only for the performance of certain administrative duties with respect to the FDL program and, accordingly, these loans are not included in its financial statements, and it is not practical to determine the balance of loans outstanding to students and former students of the Institute under these programs at June 30, 2024.
Title: Note 3 - Noncash and Federal Insurance Accounting Policies: Basis of Presentation The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award grant activity of Pittsburgh Institute of Mortuary Science, Inc. (Institute) under programs of the federal government for the year ended June 30, 2024. 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 Institute, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute. Basis of Accounting Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-21, Cost Principles for Educational Institutions or the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. The Institute has elected not to use the 10 percent de minimis indirect cost rate allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: N/A The Institute did not receive noncash assistance or have Federal insurance in effect during the fiscal year.

Finding Details

FINDING 2024-001: PELL GRANT AWARD Condition In eight of the thirty-six student files tested for compliance with Federal Pell Grant Program requirements, we determined the Institution miscalculated the student’s Pell award in one or more payment periods. The students involved were #’s 29, 33, 38, 41, 42, 46, 54 and 60. Criteria For the 2023/2024 award year, Pell Grant awards are based on a student’s Expected Family Contribution (EFC), the academic year structure of the student’s educational program, and the cost of attendance (COA) for a full-time student for a full academic year. The Scheduled Award amounts are specified on the Pell Grant payment schedules released by the U.S. Department of Education each year. For term-based programs, awards are also based on a student’s enrollment status. If the student does not begin attendance in all classes for a payment period, resulting in a change in the student’s enrollment status, a school must recalculate the student’s award for that payment period based on the lower enrollment status. Cause The students were enrolled in term-based programs offered in modules. They did not attend the same number of credits that they were originally scheduled to attend (and on which their Pell payments were based). The Institution neglected to recalculate the Pell awards and make adjustments to the student accounts. Effect and Questioned Costs As outlined below, the students were not paid the proper amount of Pell. Subsequent to our testing, the Institution returned all over awards to the Pell Grant program and offset the refunds with Institutional credits. It also provided Institutional credits (in lieu of Pell funds) to the students who were under-awarded. We verified that any resulting credit balances were sent to the students. Over (Under) Student # Disbursed Eligible Award Award Year 29 $ 2,773 $ 3,698 $ (925) 2023/2024 33 $ 392 $ 523 $ (131) 2023/2024 38 $ 2,773 $ 925 $ 1,848 2023/2024 41 $ 2,773 $ 1,849 $ 924 2023/2024 42 $ 2,454 $ 818 $ 1,636 2022/2023 46 $ 805 $ 536 $ 269 2023/2024 54 $ 1,849 $ 925 $ 924 2023/2024 60 $ 505 $ 0 $ 505 2023/2024 Total Questioned Costs: $7,162 The Institution made seventy-three separate disbursements of Pell to the students in our sample during the fiscal year, for a total of $156,034. The errors noted above represent 11% of the disbursements that were processed, but less than 5% of the dollars that were awarded during the fiscal year. FINDING 2024-001: PELL GRANT AWARD (CONTINUED) Recommendation The Institution should implement procedures to ensure that, in the future, Pell Grant awards are awarded in accordance with the federal regulations. Views of Responsible Officials The Institution concurs with this finding.
FINDING 2024-001: PELL GRANT AWARD Condition In eight of the thirty-six student files tested for compliance with Federal Pell Grant Program requirements, we determined the Institution miscalculated the student’s Pell award in one or more payment periods. The students involved were #’s 29, 33, 38, 41, 42, 46, 54 and 60. Criteria For the 2023/2024 award year, Pell Grant awards are based on a student’s Expected Family Contribution (EFC), the academic year structure of the student’s educational program, and the cost of attendance (COA) for a full-time student for a full academic year. The Scheduled Award amounts are specified on the Pell Grant payment schedules released by the U.S. Department of Education each year. For term-based programs, awards are also based on a student’s enrollment status. If the student does not begin attendance in all classes for a payment period, resulting in a change in the student’s enrollment status, a school must recalculate the student’s award for that payment period based on the lower enrollment status. Cause The students were enrolled in term-based programs offered in modules. They did not attend the same number of credits that they were originally scheduled to attend (and on which their Pell payments were based). The Institution neglected to recalculate the Pell awards and make adjustments to the student accounts. Effect and Questioned Costs As outlined below, the students were not paid the proper amount of Pell. Subsequent to our testing, the Institution returned all over awards to the Pell Grant program and offset the refunds with Institutional credits. It also provided Institutional credits (in lieu of Pell funds) to the students who were under-awarded. We verified that any resulting credit balances were sent to the students. Over (Under) Student # Disbursed Eligible Award Award Year 29 $ 2,773 $ 3,698 $ (925) 2023/2024 33 $ 392 $ 523 $ (131) 2023/2024 38 $ 2,773 $ 925 $ 1,848 2023/2024 41 $ 2,773 $ 1,849 $ 924 2023/2024 42 $ 2,454 $ 818 $ 1,636 2022/2023 46 $ 805 $ 536 $ 269 2023/2024 54 $ 1,849 $ 925 $ 924 2023/2024 60 $ 505 $ 0 $ 505 2023/2024 Total Questioned Costs: $7,162 The Institution made seventy-three separate disbursements of Pell to the students in our sample during the fiscal year, for a total of $156,034. The errors noted above represent 11% of the disbursements that were processed, but less than 5% of the dollars that were awarded during the fiscal year. FINDING 2024-001: PELL GRANT AWARD (CONTINUED) Recommendation The Institution should implement procedures to ensure that, in the future, Pell Grant awards are awarded in accordance with the federal regulations. Views of Responsible Officials The Institution concurs with this finding.