Audit 355082

FY End
2024-07-31
Total Expended
$6.01M
Findings
12
Programs
3
Year: 2024 Accepted: 2025-04-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
558174 2024-001 Significant Deficiency - N
558175 2024-001 Significant Deficiency - N
558176 2024-001 Significant Deficiency - N
558177 2024-002 Significant Deficiency - P
558178 2024-002 Significant Deficiency - P
558179 2024-002 Significant Deficiency - P
1134616 2024-001 Significant Deficiency - N
1134617 2024-001 Significant Deficiency - N
1134618 2024-001 Significant Deficiency - N
1134619 2024-002 Significant Deficiency - P
1134620 2024-002 Significant Deficiency - P
1134621 2024-002 Significant Deficiency - P

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $5.52M Yes 2
84.063 Federal Pell Grant Program $432,693 Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $57,750 Yes 2

Contacts

Name Title Type
JXJAEJP6YRJ8 Marcus Friberg Auditee
6179925652 Michelle J. Amaral, Cpa, Cfe Auditor
No contacts on file

Notes to SEFA

Title: SUBRECIPIENTS Accounting Policies: BASIS OF PRESENTATION:The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Hult International Business School, Inc. (the "School") under programs of the federal government for the year ended July 31, 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 School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 1)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. 2) Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The School has not used the 10% or 15% de minimus indirect cost rate allowed in the Uniform Guidance, as it does not apply to their federal programs. The School did not provide any federal awards to subrecipients.
Title: REVENUE RECOGNITION Accounting Policies: BASIS OF PRESENTATION:The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal award activity of Hult International Business School, Inc. (the "School") under programs of the federal government for the year ended July 31, 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 School, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the School. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: 1)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. 2) Pass-through entity identifying numbers are presented when available. De Minimis Rate Used: N Rate Explanation: The School has not used the 10% or 15% de minimus indirect cost rate allowed in the Uniform Guidance, as it does not apply to their federal programs. The School is approved as a Title IV institution by the U.S. Department of Education and as such, processes financial aid applications for U.S. citizens and permanent residents attending the School. Title IV awards relate to students attending Hult institutions in Cambridge, MA, San Francisco, London and Dubai. The School's revenue is primarily generated by tuition and fees from students enrolled and attending the School's academic programs.

Finding Details

Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.
Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must return Title IV funds to the Department of Education ("DOE") that have not been disbursed to a student's account no later than 45 days after the date the School determines that a refund is necessary. Condition: The School did not return certain Title IV funds to the DOE within 45 days. Cause: The School did not reconcile the student accounts in a timely manner to ensure the return of certain Title IV funds to the DOE within the 45 day requirement. Effect: Three instances occurred where Title IV funds were not disbursed to the students account, ranging from approximately $1,800 to $18,500. Further, these funds were not returned to the DOE within 45 days. Perspective Information: This issue was noted in three out of forty-nine students selected for testing. Recommendations: We recommend that the School ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Views of Responsible Officials and Planned Corrective Actions: The School has implemented a comprehensive set of corrective actions to strengthen internal controls and ensure any Title IV funds that are not disbursed to a student's account are returned to the DOE within 45 days. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.
Criteria: The School must design, implement, and maintain effective internal controls over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements applicable to the School's federal program. Condition: The School did not request disbursements of certain Title IV funds, the majority of which were Federal Supplemental Educational Opportunity Grant ("FSEOG") disbursements, in a timely manner. Cause: The School did not follow the procedures that are in place to ensure that certain Title IV funds that were applied to student accounts were requested and ultimately disbursed from the DOE in a timely manner. Effect: Twenty instances occurred in which student account statements and disbursement notifications indicated that Title IV funds were applied to the students account, however the Title IV funds were not drawn down from the DOE within the same fiscal year. Perspective Information: This issue was noted in twenty out of forty students selected for testing. Recommendations: We recommend that the School ensure policies and procedures are implemented and adhered to related to ensuring timely requests to the DOE for Title IV funds are made. Views of Responsible Officials and Planned Corrective Actions: The School has implemented policies and procedures to ensure timely requests to the DOE for Title IV funds are made. Please see attached corrective action plan.