FAC Explorer

Audit 349581

FY End
2024-06-30
Total Expended
$4.51M
Findings
10
Programs
5
Organization: Pennsylvania College of Art & Design (PA)
Year: 2024 Accepted: 2025-03-28
Auditor: Tait Weller & Baker LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
538852 2024-002 Significant Deficiency Yes C
538853 2024-003 Significant Deficiency - L
538854 2024-003 Significant Deficiency - L
538855 2024-003 Significant Deficiency - L
538856 2024-003 Significant Deficiency - L
1115294 2024-002 Significant Deficiency Yes C
1115295 2024-003 Significant Deficiency - L
1115296 2024-003 Significant Deficiency - L
1115297 2024-003 Significant Deficiency - L
1115298 2024-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.67M Yes 2
84.063 Federal Pell Grant Program $906,733 Yes 1
17.258 Wioa Adult Program $883,424 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $26,636 Yes 1
84.033 Federal Work-Study Program $18,548 Yes 1

Contacts

Name Title Type
JY4FMRSWRNQ6 Todd Gettys Auditee
7173967833 Ken Badasarian Auditor
No contacts on file

Notes to SEFA

Title: GENERAL INFORMATION Accounting Policies: The accompanying schedules of expenditures of federal awards are presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards presents the activity of all federal award programs of Pennsylvania College of Art & Design (the “College”). All awards received directly from federal agencies as well as financial assistance passed through other governmental agencies or non-profit organizations are included on the schedule.
Title: SUBRECIPIENTS Accounting Policies: The accompanying schedules of expenditures of federal awards are presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The College did not pass any awards through to subrecipients.
Title: MATCHING CONTRIBUTIONS Accounting Policies: The accompanying schedules of expenditures of federal awards are presented on the accrual basis of accounting. The information in these schedules 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,” Therefore, some amounts presented in these schedules may differ from amounts presented in, or used in the preparation of the financial statements. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The amounts reported in the accompanying Schedule of Expenditures of Federal Awards do not include matching contributions made by the College. The College made matching contributions to the following federal awards: Federal Work-Study Program $6,195 Federal Supplemental Educational Opportunity Grants Program 8,879 $15,074

Finding Details

Finding 2024-002
Significant Deficiency – Federal Direct Loan Cash Management Program: Federal Direct Loan Program Assistance Listing Number: 84.268 Federal Award Identification Number: P268K244070 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Fall and Spring semesters, the College did not minimize the time between funds transferred and disbursement to students’ accounts for two of its five drawdowns. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The College did not follow its policy for requesting federal funds and disbursing them to student accounts for two of five drawdowns. Effect: The College did not disburse federal funds to the students’ accounts until approximately three and five weeks after each drawdown in question. Questioned costs: $1,885,374 Identification of Repeat Finding: This is a repeat finding. Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and will ensure staff with compliance responsibilities are appropriately trained and understand the requirements of the program.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-002
Significant Deficiency – Federal Direct Loan Cash Management Program: Federal Direct Loan Program Assistance Listing Number: 84.268 Federal Award Identification Number: P268K244070 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Condition: During the Fall and Spring semesters, the College did not minimize the time between funds transferred and disbursement to students’ accounts for two of its five drawdowns. Criteria: The Advance Payment Method requires that the College disburse the requested funds no later than three business days following receipt of funds from the Education Department. Context: A review of the entire population of drawdowns for the Student Financial Aid cluster for the entire year was performed and as such, the sample is statistically valid. Cause: The College did not follow its policy for requesting federal funds and disbursing them to student accounts for two of five drawdowns. Effect: The College did not disburse federal funds to the students’ accounts until approximately three and five weeks after each drawdown in question. Questioned costs: $1,885,374 Identification of Repeat Finding: This is a repeat finding. Recommendation: The College should review its procedures related to the request and disbursement of federal funds, including controls over compliance, to ensure they are following the advance payment method and establish controls to ensure it complies with the federal requirement. Views of Responsible Officials and Planned Corrective Actions: Management agrees with this finding and will ensure staff with compliance responsibilities are appropriately trained and understand the requirements of the program.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.
Finding 2024-003
Significant Deficiency – Special Reporting Program: Student Financial Aid Cluster Assistance Listing Number: 84.268, 84.063, 84.003, 84.007 Federal Agency: U.S. Department of Education Federal Award Year: June 30, 2024 Criteria: The College is required to submit the Fiscal Operations Report and Application to Participate (FISAP) annually to receive funds for the campus-based programs. Condition: The College incorrectly reported the authorized Federal Supplemental Educational Opportunity Grant and information on tuition and fees in the FISAP submitted to the Department of Education. Additionally, the College incorrectly reported total tuition and fees on the FISAP. Questioned Costs: None Cause: The FISAP was not reconciled to the College’s internal records prior to submission due to staffing turnovers and delays in producing the financial statements. Effect: The College did not operate in accordance with the special reporting compliance requirement. Identification of Repeat Finding: This is not a repeat finding Recommendation: The College should ensure that the year-end closing process is completed timely and require a sign-off from the CFO or controller of financial statement metrics reported on the FISAP prior to submission. Views of Responsible Officials: Management agrees with this finding.