Audit 351763

FY End
2024-06-30
Total Expended
$13.29M
Findings
6
Programs
16
Organization: Saint Michael's College (VT)
Year: 2024 Accepted: 2025-03-31
Auditor: Kpmg LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
547602 2024-001 Significant Deficiency - N
547603 2024-001 Significant Deficiency - N
547604 2024-002 Significant Deficiency - L
1124044 2024-001 Significant Deficiency - N
1124045 2024-001 Significant Deficiency - N
1124046 2024-002 Significant Deficiency - L

Contacts

Name Title Type
UX4CNQ22L1A4 Catherine Palopoli Auditee
8026541910 Renee Bourget-Place Auditor
No contacts on file

Notes to SEFA

Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saint Michael’s College (the College) and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College uses an indirect cost rate of 65%, where applicable/allowable, in accordance with our rate agreement dated 12/27/2021 and effective from 7/1/2021 through 6/30/2026. The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saint Michael’s College (the College) and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements.
Title: Loan Advances and Balances Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saint Michael’s College (the College) and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College uses an indirect cost rate of 65%, where applicable/allowable, in accordance with our rate agreement dated 12/27/2021 and effective from 7/1/2021 through 6/30/2026. Loans advanced during the year to students under the Federal Direct Loan (FDL) Programs are as follows for the year ended June 30, 2024: With respect to the FDL Programs, the College is responsible only for the performance of certain administrative duties and, accordingly, these loan balances are not included in the College’s financial statements. It is not practical to determine the balances of loans outstanding from students of the College under these programs at June 30, 2024. Congress did not renew the Federal Perkins Loan Program after September 2017 and the transition period permitting disbursements ended June 30, 2018. Therefore, no new loans have been awarded after September 2017 and the College continues to service outstanding loans throughout the repayment period. For the year ended June 30, 2024, the College did not recover an administrative allowance under the Federal Perkins Loan Program. The loan receivable balance from students under the Federal Perkins Loan Program was $743,049 and $1,155,218 at June 30, 2024 and 2023.
Title: Indirect Cost Rate Accounting Policies: The accompanying supplementary schedule of expenditures of federal awards (the Schedule) includes the federal grant activity of Saint Michael’s College (the College) and is presented on the accrual basis of accounting. 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, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the consolidated financial statements. De Minimis Rate Used: N Rate Explanation: The College uses an indirect cost rate of 65%, where applicable/allowable, in accordance with our rate agreement dated 12/27/2021 and effective from 7/1/2021 through 6/30/2026. The College has not elected to utilize the 10% deminimus indirect cost rate in Part 200.514 of the Uniform Guidance.

Finding Details

Criteria Requirement: According to 34 CFR Section 685.309, under the Federal Direct loan program, institutions must complete and return the Enrollment Reporting roster file via National Student Loan Data System (NSLDS) within 15 days of receipt. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days to ensure attendance changes for students are reported within 60 days of the change. An institution must notify the Secretary of Education if it discovers that 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 school, 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. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non_x0002_Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: During our audit we found three (3) of forty (40) students selected for testing whose change in enrollment status from full time to withdrawn was not transmitted to NSLDS timely. The College reported the withdrawn status changes for these three students 61-65 days after they became aware of the status change. In addition, of these three students, the effective dates for two of the students were reported as 12/15/2023, however the effective date per supporting documentation was 12/16/2023. Cause and Effect: The condition resulted from the College’s internal controls not being designed at a level of precision to ensure all enrollment status changes are accurately and timely transmitted to NSLDS. Inaccurate and delayed submission of student enrollment status information affects the determinations that lenders and servicers of student loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government's payment of interest subsidies. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review its processes to ensure that all enrollment changes are reported as intended within the required 60-day time frame. The College should work with NSC as needed to ensure proper protocols of transmission to NSLDS occur. Additionally, a review of the submitted enrollment changes to the NSLDS should be performed to ensure current student status is properly reflected.
Criteria Requirement: According to 34 CFR Section 685.309, under the Federal Direct loan program, institutions must complete and return the Enrollment Reporting roster file via National Student Loan Data System (NSLDS) within 15 days of receipt. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days to ensure attendance changes for students are reported within 60 days of the change. An institution must notify the Secretary of Education if it discovers that 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 school, 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. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non_x0002_Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: During our audit we found three (3) of forty (40) students selected for testing whose change in enrollment status from full time to withdrawn was not transmitted to NSLDS timely. The College reported the withdrawn status changes for these three students 61-65 days after they became aware of the status change. In addition, of these three students, the effective dates for two of the students were reported as 12/15/2023, however the effective date per supporting documentation was 12/16/2023. Cause and Effect: The condition resulted from the College’s internal controls not being designed at a level of precision to ensure all enrollment status changes are accurately and timely transmitted to NSLDS. Inaccurate and delayed submission of student enrollment status information affects the determinations that lenders and servicers of student loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government's payment of interest subsidies. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review its processes to ensure that all enrollment changes are reported as intended within the required 60-day time frame. The College should work with NSC as needed to ensure proper protocols of transmission to NSLDS occur. Additionally, a review of the submitted enrollment changes to the NSLDS should be performed to ensure current student status is properly reflected.
Criteria Requirement: Institutions must submit Direct Loan and Pell origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than 7 calendars days prior to the disbursement date under the Advance Payment method. The disbursement record reports the actual disbursement records and returns acknowledgements to the institution. The acknowledgements identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement; or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: The College disbursed Pell grant funds for students who had a C-flag on their account related to citizenship issue on the FAFSA, which were then rejected by COD due to this citizenship issue on FAFSA. During our audit we found one (1) of seventy-nine (79) Pell disbursements selected for testing, was not reported to the COD website within the 15-day timeframe as required by Federal regulations. The submission date was 27 days after the Pell grant was disbursed. Based on the College’s analysis, there were seven (7) other students whose Pell grant disbursements were not reported to the COD website within the required 15-day timeframe. Cause and Effect: The cause of the condition found was deficient internal controls over the timely submission of data submitted to COD. Specifically, the students identified all had C-flags on their ISIR related to citizenship issues on the FAFSA, which were not resolved prior to disbursement and as such were rejected by COD during the reporting period until the C-flag was resolved. The effect of the condition found is that data submitted to COD is not done timely. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review the policies and procedures in place for disbursing Pell grant funds, where students have C-flags and submission of data to COD to ensure timely information is reported to COD, as required under Federal regulations
Criteria Requirement: According to 34 CFR Section 685.309, under the Federal Direct loan program, institutions must complete and return the Enrollment Reporting roster file via National Student Loan Data System (NSLDS) within 15 days of receipt. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days to ensure attendance changes for students are reported within 60 days of the change. An institution must notify the Secretary of Education if it discovers that 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 school, 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. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non_x0002_Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: During our audit we found three (3) of forty (40) students selected for testing whose change in enrollment status from full time to withdrawn was not transmitted to NSLDS timely. The College reported the withdrawn status changes for these three students 61-65 days after they became aware of the status change. In addition, of these three students, the effective dates for two of the students were reported as 12/15/2023, however the effective date per supporting documentation was 12/16/2023. Cause and Effect: The condition resulted from the College’s internal controls not being designed at a level of precision to ensure all enrollment status changes are accurately and timely transmitted to NSLDS. Inaccurate and delayed submission of student enrollment status information affects the determinations that lenders and servicers of student loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government's payment of interest subsidies. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review its processes to ensure that all enrollment changes are reported as intended within the required 60-day time frame. The College should work with NSC as needed to ensure proper protocols of transmission to NSLDS occur. Additionally, a review of the submitted enrollment changes to the NSLDS should be performed to ensure current student status is properly reflected.
Criteria Requirement: According to 34 CFR Section 685.309, under the Federal Direct loan program, institutions must complete and return the Enrollment Reporting roster file via National Student Loan Data System (NSLDS) within 15 days of receipt. An institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days to ensure attendance changes for students are reported within 60 days of the change. An institution must notify the Secretary of Education if it discovers that 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 school, 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. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non_x0002_Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: During our audit we found three (3) of forty (40) students selected for testing whose change in enrollment status from full time to withdrawn was not transmitted to NSLDS timely. The College reported the withdrawn status changes for these three students 61-65 days after they became aware of the status change. In addition, of these three students, the effective dates for two of the students were reported as 12/15/2023, however the effective date per supporting documentation was 12/16/2023. Cause and Effect: The condition resulted from the College’s internal controls not being designed at a level of precision to ensure all enrollment status changes are accurately and timely transmitted to NSLDS. Inaccurate and delayed submission of student enrollment status information affects the determinations that lenders and servicers of student loans make related to in-school status, deferments, grace periods, and repayment schedules, as well as the federal government's payment of interest subsidies. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review its processes to ensure that all enrollment changes are reported as intended within the required 60-day time frame. The College should work with NSC as needed to ensure proper protocols of transmission to NSLDS occur. Additionally, a review of the submitted enrollment changes to the NSLDS should be performed to ensure current student status is properly reflected.
Criteria Requirement: Institutions must submit Direct Loan and Pell origination records and disbursement records to the Common Origination and Disbursement (COD) system. Origination records can be sent well in advance of any disbursements, as early as the institution chooses to submit them for any student the institution reasonably believes will be eligible for a payment. An institution follows up with a disbursement record for that student no earlier than 7 calendars days prior to the disbursement date under the Advance Payment method. The disbursement record reports the actual disbursement records and returns acknowledgements to the institution. The acknowledgements identify the processing status of each record: Rejected, Accepted with Corrections, or Accepted. Institutions must report student disbursement data within 15 calendar days after the institution makes a disbursement; or becomes aware of the need to make an adjustment to previously reported student disbursement data or expected student disbursement data. Institutions may do this by reporting once every 15 calendar days, bi-weekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Further, in accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Condition and Context: The College disbursed Pell grant funds for students who had a C-flag on their account related to citizenship issue on the FAFSA, which were then rejected by COD due to this citizenship issue on FAFSA. During our audit we found one (1) of seventy-nine (79) Pell disbursements selected for testing, was not reported to the COD website within the 15-day timeframe as required by Federal regulations. The submission date was 27 days after the Pell grant was disbursed. Based on the College’s analysis, there were seven (7) other students whose Pell grant disbursements were not reported to the COD website within the required 15-day timeframe. Cause and Effect: The cause of the condition found was deficient internal controls over the timely submission of data submitted to COD. Specifically, the students identified all had C-flags on their ISIR related to citizenship issues on the FAFSA, which were not resolved prior to disbursement and as such were rejected by COD during the reporting period until the C-flag was resolved. The effect of the condition found is that data submitted to COD is not done timely. Identification of Questioned Costs: None. Whether the Sampling was a Statistically Valid Sample: The sample was not intended to be, and was not, a statistically valid sample. Identification of Whether the Audit Finding was a Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College review the policies and procedures in place for disbursing Pell grant funds, where students have C-flags and submission of data to COD to ensure timely information is reported to COD, as required under Federal regulations