FAC Explorer

Audit 351233

FY End
2024-06-30
Total Expended
$1.12M
Findings
2
Programs
4
Organization: Antioch College Corporation (OH)
Year: 2024 Accepted: 2025-03-31
Auditor: Brady Ware & Schoenfeld

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
544739 2024-001 Material Weakness Yes B
1121181 2024-001 Material Weakness Yes B

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $569,914 Yes 1
84.063 Federal Pell Grant Program $479,739 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $40,980 Yes 0
84.033 Federal Work-Study Program $29,084 Yes 0

Contacts

Name Title Type
VKVMJTP3G4H4 Alina Olson Auditee
9497359982 Melessa Behymer Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of the College 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 College, it is not intended to, and does not, present the financial position, changes in net assets, or cash flows of the College.
Title: Note 3 - Subrecipients Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The College provided no federal awards to Subrecipients.
Title: Note 4 - Processed Loans Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Direct Student Loans Program consists of subsidized, unsubsidized, and graduate plus federal Stafford Loans. Federal statute requires that proceeds from Stafford Loans be disbursed to the College to be directly applied to students' accounts. New loans processed for students during the year ended June 30, 2024 were as follows: Program Title Federal Assistance Listing Number Amount Provided Federal Direct Student Loans Stafford Subsidized 84.268 $ 338,985 Graduate Plus 84.268 56,864 Unsubsidized 84.268 174,065 $ 569,914

Finding Details

Finding 2024-001
"an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which an endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinary prudent person in a like position would exercise under similar circumstances." Condition: The College has borrowed from its endowment funds for campus renovations and to cover certain operating expenses of the College prior to and immediately following its accreditation and approval to participate in federal student financial aid programs. As such, the fair value of assets associated with the donor-restricted endowment funds has fallen below the level that the donor or UPMIFA requires the College to retain as a fund of perpetual duration. Cause: When the purchase of the College happened in 2009, the buildings were in such despair that they were not able to be used. The College deemed it prudent to borrow from endowment to repair the buildings to be able to meet accreditation standards. Effect or potential effect: The judgment of the Board of Trustees is that the endowment exists for the sole purpose of benefiting the College and that the continuing operation of the College could not be assured without borrowing of funds from the endowment. Potential effect is that donor would not agree with "prudence" of the borrowing of the endowment funds. Recommendation: The College should continue to work long-term plans for maintaining and sustaining financial stability and full restoration of the endowment. Repeat finding: Yes. Prior year finding number 2023-002. The College was not in financial position to repay loans from endowments. Views of responsible officials: See attached.
Finding 2024-001
"an institution may appropriate for expenditure or accumulate so much of an endowment fund as the institution determines is prudent for the uses, benefits, purposes, and duration for which an endowment fund is established. Unless stated otherwise in the gift instrument, the assets in an endowment fund are donor-restricted assets until appropriated for expenditure by the institution. In making a determination to appropriate or accumulate, the institution shall act in good faith, with the care that an ordinary prudent person in a like position would exercise under similar circumstances." Condition: The College has borrowed from its endowment funds for campus renovations and to cover certain operating expenses of the College prior to and immediately following its accreditation and approval to participate in federal student financial aid programs. As such, the fair value of assets associated with the donor-restricted endowment funds has fallen below the level that the donor or UPMIFA requires the College to retain as a fund of perpetual duration. Cause: When the purchase of the College happened in 2009, the buildings were in such despair that they were not able to be used. The College deemed it prudent to borrow from endowment to repair the buildings to be able to meet accreditation standards. Effect or potential effect: The judgment of the Board of Trustees is that the endowment exists for the sole purpose of benefiting the College and that the continuing operation of the College could not be assured without borrowing of funds from the endowment. Potential effect is that donor would not agree with "prudence" of the borrowing of the endowment funds. Recommendation: The College should continue to work long-term plans for maintaining and sustaining financial stability and full restoration of the endowment. Repeat finding: Yes. Prior year finding number 2023-002. The College was not in financial position to repay loans from endowments. Views of responsible officials: See attached.