FAC Explorer

Audit 365871

FY End
2024-12-31
Total Expended
$3.32M
Findings
2
Programs
2
Organization: Hazelden Betty Ford Foundation and Subsidiaries (MN)
Year: 2024 Accepted: 2025-09-09
Auditor: Baker Tilly US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
575951 2024-001 Significant Deficiency - N
1152393 2024-001 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.01M Yes 1
93.279 Drug Use and Addiction Research Programs $17,568 - 0

Contacts

Name Title Type
E3LAM9FF3KW8 Vickie Kelley Auditee
6512134864 Krista Pankop 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Foundation has not elected to use the de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Hazelden Betty Ford Foundation and Subsidiaries (the Foundation) under programs of the federal government for the year ended December 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 Foundation, it is not intended to and does not present the financial position, changes in net position or cash flows of the Foundation.
Title: Summary of Significant Accounting Policies 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Foundation has not elected to use the de minimis indirect cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate 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 Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The Foundation has not elected to use the de minimis indirect cost rate. The Foundation has not elected to use the de minimis indirect cost rate.

Finding Details

Finding 2024-001
Finding 2024-001: Significant Deficiency – Noncompliance with Special Tests and Provisions: Disbursements Federal Program - Student Financial Assistance Cluster Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number - 84.268 Federal Award Number - P268K255904 Federal Award Year - December 31, 2024 Criteria: Title IV regulations (34 CFR 685.301(b)(6)) require that the date of loan origination is the date a school creates the electronic loan origination record. Title IV regulations specifies that a school must submit disbursement records no later than 15 days after making the disbursement or becoming aware of the need to adjust a student's previously reported disbursement. Institutions submit Direct Loan origination records and disbursement records to the Common Origination and Disbursement (COD) system. The disbursement record reports the actual disbursement date and the amount of the disbursement. The US Department of Education processes origination and/or disbursement records and returns acknowledgments to the institution. Condition: For 3 of 25 students selected for testing, the disbursement dates did not agree between the student's institutional account and the data reported to COD. Each student had disbursements that were later partially or fully refunded. The sample was not a statistically valid sample. Cause: The Foundation failed to follow its procedures for reporting student disbursement dates correctly and/or within the required timeframe. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the disbursement information reported by institutions. If an institution does not review, update, and verify disbursement dates, then the Title IV student loan records will be inaccurate. Questioned costs: $30,426 of Federal Direct Unsubsidized Loans. Recommendation: It is recommended that policies, procedures and effective controls are put in place to verify that the disbursement dates for federal funds are matching between the student account detail and the COD system. Management Response: The Foundation will ensure that policies, procedures and effective controls are in place to verify the matching of the disbursement dates for federal funds between the student account detail and the COD system.
Finding 2024-001
Finding 2024-001: Significant Deficiency – Noncompliance with Special Tests and Provisions: Disbursements Federal Program - Student Financial Assistance Cluster Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number - 84.268 Federal Award Number - P268K255904 Federal Award Year - December 31, 2024 Criteria: Title IV regulations (34 CFR 685.301(b)(6)) require that the date of loan origination is the date a school creates the electronic loan origination record. Title IV regulations specifies that a school must submit disbursement records no later than 15 days after making the disbursement or becoming aware of the need to adjust a student's previously reported disbursement. Institutions submit Direct Loan origination records and disbursement records to the Common Origination and Disbursement (COD) system. The disbursement record reports the actual disbursement date and the amount of the disbursement. The US Department of Education processes origination and/or disbursement records and returns acknowledgments to the institution. Condition: For 3 of 25 students selected for testing, the disbursement dates did not agree between the student's institutional account and the data reported to COD. Each student had disbursements that were later partially or fully refunded. The sample was not a statistically valid sample. Cause: The Foundation failed to follow its procedures for reporting student disbursement dates correctly and/or within the required timeframe. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the disbursement information reported by institutions. If an institution does not review, update, and verify disbursement dates, then the Title IV student loan records will be inaccurate. Questioned costs: $30,426 of Federal Direct Unsubsidized Loans. Recommendation: It is recommended that policies, procedures and effective controls are put in place to verify that the disbursement dates for federal funds are matching between the student account detail and the COD system. Management Response: The Foundation will ensure that policies, procedures and effective controls are in place to verify the matching of the disbursement dates for federal funds between the student account detail and the COD system.