FAC Explorer

Audit 351950

FY End
2024-06-30
Total Expended
$1.77M
Findings
6
Programs
4
Organization: Visible Music College (TN)
Year: 2024 Accepted: 2025-03-31
Auditor: Dalcpa

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
548598 2024-001 - - N
548599 2024-001 - - N
548600 2024-001 - - N
1125040 2024-001 - - N
1125041 2024-001 - - N
1125042 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $1.31M Yes 1
84.063 Federal Pell Grant Program $434,190 Yes 1
84.033 Federal Work-Study Program $15,046 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $13,725 Yes 1

Contacts

Name Title Type
ZLR6RPGEG9M3 Ben Rawley Auditee
9013613939 David A Levy Auditor
No contacts on file

Notes to SEFA

Title: A. Reporting Entity Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The accompanying schedule includes all federal award programs for the fiscal year ended June 30, 2024. The reporting entity is defined in Notes to Financial Statements as of June 30, 2024.
Title: B. Basis of Presentation Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The information in the accompanying schedule of expenditures of federal awards is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulation 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 Visible Music College, it is not intended to and does not present the financial position, changes in net assets or cash flows of Visible Music College. 1. Pursuant to the Uniform Guidance, federal awards are defined as assistance provided by a federal agency, either directly or indirectly, in the form of grants, contracts, cooperative agreements, loans, loan guarantees, property, interest subsidies, insurance or direct appropriations. 2. Major Programs- The Uniform Guidance establishes the levels of expenditure or expenses to be used in defining major federal financial award programs. Major programs for the school have been identified in the attached Schedule of Findings and Questioned costs.
Title: C. Basis of Accounting Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements.
Title: D. Indirect Cost Rate Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. Indirect Cost Rate - The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance.
Title: E. Subrecipients Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. There were no funds passed through to subrecipients.
Title: F. Accounting Policies: The information presented in the schedule of expenditures of federal awards is presented on the accrual basis of accounting, which is consistent with the reporting in the Institution’s financial statements. De Minimis Rate Used: N Rate Explanation: The school has elected not to use the 10 percent de minimis indirect cost rate allowed under Uniform Guidance. The United States Department of Education performed a program review of the Institution from September 9, 2019 through September 13, 2019 and issued a report dated March 13, 2020 with 10 findings. On June 12, 2020 the Institution submitted an initial limited response (ILR) to the program review report challenging several of these findings. As of the date of this report, there has been no final resolution of the program review, and the Department of Education has not issued a Final Audit Determination Letter. On July 27, 2022 the Institution received a letter from the United States Department of Education notifying the Institution of that it had completed its review of the fiscal year ended June 30, 2021 audited financial statements and that the composite score was a 0.9. The letter stipulates that the Institution must either 1) post a letter of credit in the amount of 75% of Title IV funds received or 2) post a letter of credit in the amount of 25% of Title IV funds received and be provisionally certified for a period of up to three complete award years.

Finding Details

Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.
Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.
Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.
Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.
Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.
Finding 2024-001
FINDING 2024-001: Incorrect Title IV (R2T4) Calculation CRITERIA: In accordance with 34 CFR 668.22(1) when a recipient of Title IV grant or loan assistance withdraws from an Institution during a payment period or period of enrollment in which the recipient began attendance, the Institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student's withdrawal date. CONDITION: The Institution calculated the R2T4 incorrectly. CAUSE: The Institution did not follow its ordinary procedures to accurately and timely perform R2T4 calculations. EFFECT: The Institution over returned Title IV funds. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In two instances out of 50 files reviewed, of which 25 students withdrew, the Institution calculated the R2T4 incorrectly. Both instances resulted in over refunding Title IV funds that were earned by the Institution. This is not considered a material finding. No. of Students FPELL FDLP FSEOG Total Universe 128 434,190 1,308,216 13,725 1,756,131 Sample Size 50 170,171 408,716 6,600 585,487 Sample for this Attribute 25 84,494 193,091 3,500 281,085 Instances of Non Compliance 2 1,968 597 200 2,765 Level of Materiality Immaterial RECOMMENDATION: We recommend the Institution review all withdrawn students to ensure that all R2T4 calculations are completed, accurate, and the required funds are returned the USDOE. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has procedures in place as outlined in the Corrective Action Plan to ensure compliance with requirements.