Audit 352623

FY End
2024-06-30
Total Expended
$6.99M
Findings
2
Programs
6
Organization: Boston Architectural College (MA)
Year: 2024 Accepted: 2025-04-03
Auditor: Bonadio & CO LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
553967 2024-001 Significant Deficiency - N
1130409 2024-001 Significant Deficiency - N

Programs

Contacts

Name Title Type
JC27NEEZ7SK2 Maria Chapian Auditee
6175850263 Joseph Peplin Auditor
No contacts on file

Notes to SEFA

Title: BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the schedule) summarizes the expenditures of Boston Architectural College (the College) under programs of the federal government for the year ended June 30, 2024 and has been prepared in conformity with accounting principles generally accepted in the United States. 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, change in net assets, or cash flows of the College. For the purposes of the schedule, federal awards include all grants, contracts, and similar agreements entered into directly between the College and agencies and departments of the federal government, as well as federal awards passed through other agencies. Student financial assistance includes certain awards to provide financial assistance to students, primarily under the Federal Work-Study, Pell Grant and Supplemental Educational Opportunity Grant programs of the U.S. Department of Education. The College receives awards to make loans to eligible students under certain federal student loan programs and federally guaranteed loans are issued to students of the College by the federal government. These loans are considered for the purposes of determining whether student financial assistance is a major or nonmajor program.

Finding Details

U.S. Department of Education Assistance Listing Number 84.063 Pell Disbursement Process Condition - During the audit, it was identified that 3 out of 19 sampled students were not disbursed the correct PELL award. The sample was not statistically valid. Criteria - According to federal regulations, institutions are required to calculate and disburse PELL Grant award to eligible students based on their Expected Family Contribution (EFC) and enrollment status (i.e., number of credit hours registered). Cause - A system error resulted in the locking of student accounts, which prevented the automated update of disbursements when students' registration status changed. Effect - The College did not properly disburse PELL awards, resulting in either an under or over award to the affected students. Recommendation - We recommend that the College provide training for staff on identifying and resolving registration changes impacting PELL disbursements and enhance monitoring controls to ensure timely and accurate adjustments to students’ disbursements in compliance with federal requirements. Views of Responsible Officials - The College is dedicated to awarding and disbursing all federal awards timely and accurately. A system error resulted in the locking of Pell grant awards which prevented the automated updates of award amounts when students’ registered credits changed. The College has implemented training to all Financial Aid team who award students to not lock any federal aid awards with the system. When reviewing and disbursing there will also be a specific check for locked awards to prevent this going forward.
U.S. Department of Education Assistance Listing Number 84.063 Pell Disbursement Process Condition - During the audit, it was identified that 3 out of 19 sampled students were not disbursed the correct PELL award. The sample was not statistically valid. Criteria - According to federal regulations, institutions are required to calculate and disburse PELL Grant award to eligible students based on their Expected Family Contribution (EFC) and enrollment status (i.e., number of credit hours registered). Cause - A system error resulted in the locking of student accounts, which prevented the automated update of disbursements when students' registration status changed. Effect - The College did not properly disburse PELL awards, resulting in either an under or over award to the affected students. Recommendation - We recommend that the College provide training for staff on identifying and resolving registration changes impacting PELL disbursements and enhance monitoring controls to ensure timely and accurate adjustments to students’ disbursements in compliance with federal requirements. Views of Responsible Officials - The College is dedicated to awarding and disbursing all federal awards timely and accurately. A system error resulted in the locking of Pell grant awards which prevented the automated updates of award amounts when students’ registered credits changed. The College has implemented training to all Financial Aid team who award students to not lock any federal aid awards with the system. When reviewing and disbursing there will also be a specific check for locked awards to prevent this going forward.