Audit 357971

FY End
2024-09-30
Total Expended
$304.74M
Findings
14
Programs
77
Year: 2024 Accepted: 2025-06-03

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
563661 2024-001 - - N
563662 2024-001 - - N
563663 2024-001 - - N
563664 2024-001 - - N
563665 2024-001 - - N
563666 2024-002 - - L
563667 2024-002 - - L
1140103 2024-001 - - N
1140104 2024-001 - - N
1140105 2024-001 - - N
1140106 2024-001 - - N
1140107 2024-001 - - N
1140108 2024-002 - - L
1140109 2024-002 - - L

Programs

ALN Program Spent Major Findings
93.859 Biomedical Research and Research Training $10.98M Yes 0
93.865 Child Health and Human Development Extramural Research $5.01M Yes 0
93.279 Drug Use and Addiction Research Programs $1.60M Yes 0
93.867 Vision Research $1.38M Yes 0
84.268 Federal Direct Student Loans $1.35M Yes 2
97.036 Covid-19 - Disaster Grants - Public Assistance (presidentially Declared Disasters) $1.23M - 0
84.063 Federal Pell Grant Program $1.07M Yes 2
93.121 Oral Diseases and Disorders Research $1.04M Yes 0
84.038 Federal Perkins Loan Program $826,139 Yes 1
43.003 Exploration $680,010 Yes 0
93.855 Allergy and Infectious Diseases Research $562,616 Yes 0
93.879 Medical Library Assistance $550,185 Yes 0
12.800 Air Force Defense Research Sciences Program $548,657 Yes 0
12.RD Not Available $512,713 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $421,725 Yes 1
93.394 Cancer Detection and Diagnosis Research $405,517 Yes 0
81.135 Advanced Research Projects Agency - Energy $353,624 Yes 0
15.229 Wild Horse and Burro Resource Management $337,963 Yes 0
12.910 Research and Technology Development $322,666 Yes 0
93.173 Research Related to Deafness and Communication Disorders $312,020 Yes 0
93.RD Not Available $286,309 Yes 0
93.172 Human Genome Research $273,230 Yes 0
97.RD Not Available $272,074 Yes 0
15.RD Not Available $269,075 Yes 0
47.RD Not Available $265,124 Yes 0
81.049 Office of Science Financial Assistance Program $262,808 Yes 0
84.033 Federal Work-Study Program $241,825 Yes 1
47.074 Biological Sciences $226,097 Yes 0
47.084 Nsf Technology, Innovation, and Partnerships $212,982 Yes 0
47.083 Integrative Activities $205,064 Yes 0
81.086 Conservation Research and Development $204,383 Yes 0
93.213 Research and Training in Complementary and Integrative Health $196,213 Yes 0
93.351 Research Infrastructure Programs $194,880 Yes 0
12.431 Basic Scientific Research $159,487 Yes 0
81.RD Not Available $151,679 Yes 0
93.837 Cardiovascular Diseases Research $149,161 Yes 0
47.070 Computer and Information Science and Engineering $144,493 Yes 0
93.396 Cancer Biology Research $142,716 Yes 0
12.351 Scientific Research - Combating Weapons of Mass Destruction $115,952 Yes 0
47.049 Mathematical and Physical Sciences $108,399 Yes 0
43.008 Office of Stem Engagement (ostem) $107,183 Yes 0
12.420 Military Medical Research and Development $104,858 Yes 0
47.078 Not Available $104,358 Yes 0
93.838 Lung Diseases Research $103,699 Yes 0
45.161 Promotion of the Humanities Research $100,931 Yes 0
93.310 Trans-Nih Research Support $91,811 Yes 0
81.112 Stewardship Science Grant Program $91,411 Yes 0
93.433 Acl National Institute on Disability, Independent Living, and Rehabilitation Research $88,433 Yes 0
16.575 Crime Victim Assistance $84,432 - 0
47.041 Engineering $79,253 Yes 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $72,868 Yes 0
47.084 Not Available $69,660 Yes 0
93.866 Aging Research $69,459 Yes 0
20.109 Air Transportation Centers of Excellence $69,037 Yes 0
47.075 Social, Behavioral, and Economic Sciences $53,694 Yes 0
43.012 Space Technology $46,998 Yes 0
47.078 Polar Programs $40,443 Yes 0
47.076 Stem Education (formerly Education and Human Resources) $40,179 Yes 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $39,536 Yes 0
93.398 Cancer Research Manpower $37,236 Yes 0
16.588 Violence Against Women Formula Grants $33,704 - 0
43.001 Science $31,015 Yes 0
15.807 Earthquake Hazards Program Assistance $27,864 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $25,375 Yes 0
93.497 Family Violence Prevention and Services/ Sexual Assault/rape Crisis Services and Supports $25,000 Yes 0
47.050 Geosciences $21,730 Yes 0
43.RD Not Available $21,416 Yes 0
15.808 U.s. Geological Survey Research and Data Collection $19,555 Yes 0
93.242 Mental Health Research Grants $18,176 Yes 0
93.103 Food and Drug Administration Research $11,815 Yes 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $5,528 Yes 0
11.431 Climate and Atmospheric Research $1,440 Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $1,106 Yes 0
93.395 Cancer Treatment Research $-4,789 Yes 0
12.300 Basic and Applied Scientific Research $-5,914 Yes 0
81.087 Renewable Energy Research and Development $-10,000 Yes 0
81.089 Fossil Energy Research and Development $-17,754 Yes 0

Contacts

Name Title Type
U2JMKHNS5TG4 Rochelle Athey Auditee
6263952585 Sarah Ramos Auditor
No contacts on file

Notes to SEFA

Title: FN1 - Summary of Significant Accounting Policies Accounting Policies: General The California Institute of Technology (the "Institute") is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute provides education and training services, primarily for students at the undergraduate, graduate, and postdoctoral levels. The Institute performs research, training, and other services under grants, contracts, and similar agreements with sponsoring organizations, primarily departments and agencies of the United States government. The awards set forth in the accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) do not include amounts related to the Jet Propulsion Laboratory ("JPL") which is a National Aeronautics and Space Administration ("NASA") Federally Funded Research and Development Center ("FFRDC") managed by the Institute. JPL has separate audited financial statements and an audit under the Uniform Guidance. Basis of Presentation The Schedule has been prepared on the cash basis of accounting and 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”). The Schedule summarizes the expenditures of the Institute under programs of the federal government for the year ended September 30, 2024, except those related to JPL. Because the Schedule presents only a selected portion of the operations of the Institute and is prepared on the cash basis of accounting, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenditures include a portion of costs associated with general institution activities (facilities and administrative costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates. The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. Negative balances reflected in the Schedule represent adjustments to expenditures under awards made in prior years. The Institute receives funding or reimbursement from Federal Government agencies primarily for research under government grants and contracts. Grants and contracts provide for reimbursement of indirect costs based on rates negotiated with the Department of Defense’s Office of Naval Research ("ONR"), the Institute’s cognizant federal agency. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Institute and agencies and departments of the federal government and all subawards to the Institute by nonfederal organizations pursuant to federal grants, contracts and similar agreements. De Minimis Rate Used: N Rate Explanation: The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. General The California Institute of Technology (the "Institute") is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute provides education and training services, primarily for students at the undergraduate, graduate, and postdoctoral levels. The Institute performs research, training, and other services under grants, contracts, and similar agreements with sponsoring organizations, primarily departments and agencies of the United States government. The awards set forth in the accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) do not include amounts related to the Jet Propulsion Laboratory ("JPL") which is a National Aeronautics and Space Administration ("NASA") Federally Funded Research and Development Center ("FFRDC") managed by the Institute. JPL has separate audited financial statements and an audit under the Uniform Guidance. Basis of Presentation The Schedule has been prepared on the cash basis of accounting and 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”). The Schedule summarizes the expenditures of the Institute under programs of the federal government for the year ended September 30, 2024, except those related to JPL. Because the Schedule presents only a selected portion of the operations of the Institute and is prepared on the cash basis of accounting, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenditures include a portion of costs associated with general institution activities (facilities and administrative costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates. The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. Negative balances reflected in the Schedule represent adjustments to expenditures under awards made in prior years. The Institute receives funding or reimbursement from Federal Government agencies primarily for research under government grants and contracts. Grants and contracts provide for reimbursement of indirect costs based on rates negotiated with the Department of Defense’s Office of Naval Research ("ONR"), the Institute’s cognizant federal agency. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Institute and agencies and departments of the federal government and all subawards to the Institute by nonfederal organizations pursuant to federal grants, contracts and similar agreements.
Title: FN2 - Loan Advances Accounting Policies: General The California Institute of Technology (the "Institute") is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute provides education and training services, primarily for students at the undergraduate, graduate, and postdoctoral levels. The Institute performs research, training, and other services under grants, contracts, and similar agreements with sponsoring organizations, primarily departments and agencies of the United States government. The awards set forth in the accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) do not include amounts related to the Jet Propulsion Laboratory ("JPL") which is a National Aeronautics and Space Administration ("NASA") Federally Funded Research and Development Center ("FFRDC") managed by the Institute. JPL has separate audited financial statements and an audit under the Uniform Guidance. Basis of Presentation The Schedule has been prepared on the cash basis of accounting and 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”). The Schedule summarizes the expenditures of the Institute under programs of the federal government for the year ended September 30, 2024, except those related to JPL. Because the Schedule presents only a selected portion of the operations of the Institute and is prepared on the cash basis of accounting, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenditures include a portion of costs associated with general institution activities (facilities and administrative costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates. The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. Negative balances reflected in the Schedule represent adjustments to expenditures under awards made in prior years. The Institute receives funding or reimbursement from Federal Government agencies primarily for research under government grants and contracts. Grants and contracts provide for reimbursement of indirect costs based on rates negotiated with the Department of Defense’s Office of Naval Research ("ONR"), the Institute’s cognizant federal agency. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Institute and agencies and departments of the federal government and all subawards to the Institute by nonfederal organizations pursuant to federal grants, contracts and similar agreements. De Minimis Rate Used: N Rate Explanation: The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. The Federal Perkins Loan Program is administered directly by the Institute. The outstanding balance of loans at September 30, 2024 was $555,462. Balances and transactions related to this program are included in the Institute’s financial statements. The Institute did not charge any administrative cost allowance to the Federal Perkins Loan Program for the year ended September 30, 2024.
Title: FN3 - Commingled Assistance Accounting Policies: General The California Institute of Technology (the "Institute") is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute provides education and training services, primarily for students at the undergraduate, graduate, and postdoctoral levels. The Institute performs research, training, and other services under grants, contracts, and similar agreements with sponsoring organizations, primarily departments and agencies of the United States government. The awards set forth in the accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) do not include amounts related to the Jet Propulsion Laboratory ("JPL") which is a National Aeronautics and Space Administration ("NASA") Federally Funded Research and Development Center ("FFRDC") managed by the Institute. JPL has separate audited financial statements and an audit under the Uniform Guidance. Basis of Presentation The Schedule has been prepared on the cash basis of accounting and 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”). The Schedule summarizes the expenditures of the Institute under programs of the federal government for the year ended September 30, 2024, except those related to JPL. Because the Schedule presents only a selected portion of the operations of the Institute and is prepared on the cash basis of accounting, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenditures include a portion of costs associated with general institution activities (facilities and administrative costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates. The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. Negative balances reflected in the Schedule represent adjustments to expenditures under awards made in prior years. The Institute receives funding or reimbursement from Federal Government agencies primarily for research under government grants and contracts. Grants and contracts provide for reimbursement of indirect costs based on rates negotiated with the Department of Defense’s Office of Naval Research ("ONR"), the Institute’s cognizant federal agency. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Institute and agencies and departments of the federal government and all subawards to the Institute by nonfederal organizations pursuant to federal grants, contracts and similar agreements. De Minimis Rate Used: N Rate Explanation: The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. California Student Aid Commission (CSAC) administers the State Cal Grant A and B Programs, selects the student recipients of these grant awards, and provides funds to participating institutions for disbursement. Federal Temporary Assistance for Needy Families (TANF) funds, Assistance Listing Number 93.558, from the United States Department of Health and Human Services may comprise up to approximately 25% of the total funding for these Cal Grant awards. In fiscal year 2024, the Institute received Cal Grant A funds in the amount of $283,859 and Cal Grant B funds in the amount of $1,648; however, CSAC is unable to determine the exact amount of TANF funds, if any, represented in those awards. Therefore, the Schedule does not include State Cal Grant A or B awards.
Title: FN4 - Federal Emergency Management Agency Accounting Policies: General The California Institute of Technology (the "Institute") is a private, not-for-profit institution of higher education based in Pasadena, California. The Institute provides education and training services, primarily for students at the undergraduate, graduate, and postdoctoral levels. The Institute performs research, training, and other services under grants, contracts, and similar agreements with sponsoring organizations, primarily departments and agencies of the United States government. The awards set forth in the accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) do not include amounts related to the Jet Propulsion Laboratory ("JPL") which is a National Aeronautics and Space Administration ("NASA") Federally Funded Research and Development Center ("FFRDC") managed by the Institute. JPL has separate audited financial statements and an audit under the Uniform Guidance. Basis of Presentation The Schedule has been prepared on the cash basis of accounting and 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”). The Schedule summarizes the expenditures of the Institute under programs of the federal government for the year ended September 30, 2024, except those related to JPL. Because the Schedule presents only a selected portion of the operations of the Institute and is prepared on the cash basis of accounting, it is not intended to and does not present the financial position, changes in net assets or cash flows of the Institute in accordance with accounting principles generally accepted in the United States of America. Expenditures for direct costs are recognized as incurred using the cash basis of accounting and the cost accounting principles contained in the Uniform Guidance. Under those cost principles, certain types of expenditures are not allowable or are limited as to reimbursement. Moreover, expenditures include a portion of costs associated with general institution activities (facilities and administrative costs) which are allocated to awards under negotiated formulas commonly referred to as indirect cost rates. The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. Negative balances reflected in the Schedule represent adjustments to expenditures under awards made in prior years. The Institute receives funding or reimbursement from Federal Government agencies primarily for research under government grants and contracts. Grants and contracts provide for reimbursement of indirect costs based on rates negotiated with the Department of Defense’s Office of Naval Research ("ONR"), the Institute’s cognizant federal agency. For purposes of the Schedule, federal awards include all grants, contracts and similar agreements entered into directly between the Institute and agencies and departments of the federal government and all subawards to the Institute by nonfederal organizations pursuant to federal grants, contracts and similar agreements. De Minimis Rate Used: N Rate Explanation: The Institute has elected to use its own negotiated indirect cost rates rather than the 10% de minimis rate allowed by Uniform Guidance. The Institute applied for reimbursement of certain expenses related to the COVID-19 pandemic under Assistance Listing #97.036, FEMA Public Assistance through the California Governor’s Office of Emergency Services. Expenditures are reflected in the Schedule in the year in which a project application is obligated and expenses have been incurred. The Schedule therefore includes federal assistance totaling $1,233,486 related to projects obligated in 2024 that included expenditures incurred in fiscal years 2023, 2022, and 2021. Those expenses represent a reconciling item between the federal expenses in the Institute’s financial statements and the amount included on the Schedule.

Finding Details

Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-002: Common Origination and Disbursement (COD) Reporting Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Pell Grant Program, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Pell Grant Program, Federal Direct Student Loans Assistance Listing Number: 84.063, 84.268 Pass-Through Entities: Not applicable Criteria Student disbursements are required to be reported in the COD system within 15 days of disbursing the federal funds to the student. Condition Through our testing of 25 selections, we noted that 1 of the 25 selections was not reported to the COD within 15 calendar days of the disbursement to the student. The noted disbursement was reported 5 calendar days late. Cause Management performs a reconciliation between the COD system and the internal financial aid system on a monthly basis. The selected student was identified by management as part of this reconciliation and subsequently reported within the COD system. However, due to the timing of the monthly reconciliation, the reporting was not completed within the 15-day requirement. Through discussions with the Institute, we understand there were additional instances of late reporting as a result of this issue. Effect Late reporting to the COD could lead to not identifying an error in a disbursement, reconciliations not being able to be completed efficiently, and other federal compliance issues. Questioned Costs None noted. Recommendation We recommend the Institute establish a process, such as a checklist to report disbursements on a prescribed basis to the COD, to ensure timely transmission and error identification within the disbursement reporting. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-002: Common Origination and Disbursement (COD) Reporting Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Pell Grant Program, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Pell Grant Program, Federal Direct Student Loans Assistance Listing Number: 84.063, 84.268 Pass-Through Entities: Not applicable Criteria Student disbursements are required to be reported in the COD system within 15 days of disbursing the federal funds to the student. Condition Through our testing of 25 selections, we noted that 1 of the 25 selections was not reported to the COD within 15 calendar days of the disbursement to the student. The noted disbursement was reported 5 calendar days late. Cause Management performs a reconciliation between the COD system and the internal financial aid system on a monthly basis. The selected student was identified by management as part of this reconciliation and subsequently reported within the COD system. However, due to the timing of the monthly reconciliation, the reporting was not completed within the 15-day requirement. Through discussions with the Institute, we understand there were additional instances of late reporting as a result of this issue. Effect Late reporting to the COD could lead to not identifying an error in a disbursement, reconciliations not being able to be completed efficiently, and other federal compliance issues. Questioned Costs None noted. Recommendation We recommend the Institute establish a process, such as a checklist to report disbursements on a prescribed basis to the COD, to ensure timely transmission and error identification within the disbursement reporting. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-001: E-Sign Act Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Supplemental Educational Opportunity Grant, Federal Work Study Program, Federal Pell Grant Program, Federal Perkins Loan, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Supplemental Educational Opportunity Grants, Federal Work-Study Program, Federal Pell Grant Program, Federal Perkins Loan Program, Federal Direct Student Loans Assistance Listing Number: 84.007, 84.033, 84.063, 84.038, 84.268 Pass-Through Entities: Not applicable Criteria The Electronic Signatures in Global and National Commerce Act (“E-Sign Act”) states that a school must obtain a student’s voluntary consent to participate in electronic transactions. Condition In examining 25 student records, we noted annually each student signs off on certain terms and conditions before they accept federal student assistance, however, a statement prompting the student to voluntarily consent to participate in electronic transactions was not included in the list of terms and conditions. Cause The Institute was not aware of the requirements of the E-Sign Act and, therefore, did not include proper voluntarily consent to participate in electronic transactions within terms and conditions that are reviewed and signed off by students. Effect A lack of student consent to participate in electronic transactions may result in transactions being denied legal effect, validity, or enforceability solely because it is in election form or because an electronic signature or electronic record was used in its formation. Questioned Costs None noted. Recommendation We recommend the Institute establish a process that prompts students to voluntarily consent to participate in electronic transactions prior to students receiving federal student financial assistance. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-002: Common Origination and Disbursement (COD) Reporting Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Pell Grant Program, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Pell Grant Program, Federal Direct Student Loans Assistance Listing Number: 84.063, 84.268 Pass-Through Entities: Not applicable Criteria Student disbursements are required to be reported in the COD system within 15 days of disbursing the federal funds to the student. Condition Through our testing of 25 selections, we noted that 1 of the 25 selections was not reported to the COD within 15 calendar days of the disbursement to the student. The noted disbursement was reported 5 calendar days late. Cause Management performs a reconciliation between the COD system and the internal financial aid system on a monthly basis. The selected student was identified by management as part of this reconciliation and subsequently reported within the COD system. However, due to the timing of the monthly reconciliation, the reporting was not completed within the 15-day requirement. Through discussions with the Institute, we understand there were additional instances of late reporting as a result of this issue. Effect Late reporting to the COD could lead to not identifying an error in a disbursement, reconciliations not being able to be completed efficiently, and other federal compliance issues. Questioned Costs None noted. Recommendation We recommend the Institute establish a process, such as a checklist to report disbursements on a prescribed basis to the COD, to ensure timely transmission and error identification within the disbursement reporting. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.
Finding 2024-002: Common Origination and Disbursement (COD) Reporting Cluster Name: Student Financial Assistance Federal Awarding Agency: Department of Education Award Name: Federal Pell Grant Program, Federal Direct Loans Award Number: Various Award Year: 10/1/2023-9/30/2024 Assistance Listing Title: Federal Pell Grant Program, Federal Direct Student Loans Assistance Listing Number: 84.063, 84.268 Pass-Through Entities: Not applicable Criteria Student disbursements are required to be reported in the COD system within 15 days of disbursing the federal funds to the student. Condition Through our testing of 25 selections, we noted that 1 of the 25 selections was not reported to the COD within 15 calendar days of the disbursement to the student. The noted disbursement was reported 5 calendar days late. Cause Management performs a reconciliation between the COD system and the internal financial aid system on a monthly basis. The selected student was identified by management as part of this reconciliation and subsequently reported within the COD system. However, due to the timing of the monthly reconciliation, the reporting was not completed within the 15-day requirement. Through discussions with the Institute, we understand there were additional instances of late reporting as a result of this issue. Effect Late reporting to the COD could lead to not identifying an error in a disbursement, reconciliations not being able to be completed efficiently, and other federal compliance issues. Questioned Costs None noted. Recommendation We recommend the Institute establish a process, such as a checklist to report disbursements on a prescribed basis to the COD, to ensure timely transmission and error identification within the disbursement reporting. Management’s Views and Corrective Action Plan Management’s views and corrective action plan are included at the end of this report.