FAC Explorer

Audit 385408

FY End
2025-06-30
Total Expended
$1.01M
Findings
1
Programs
4
Organization: Visible Music College (TN)
Year: 2025 Accepted: 2026-02-04
Auditor: DAVID A LEVY CPA

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1172358 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $702,008 Yes 1
84.063 FEDERAL PELL GRANT PROGRAM $285,798 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $14,045 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $11,551 Yes 0

Contacts

Name Title Type
ZLR6RPGEG9M3 Dr. Ken Steorts Auditee
9012015363 David A Levy Auditor
No contacts on file

Notes to SEFA

The accompanying schedule includes all federal award programs for the fiscal year ended June 30, 2025. The reporting entity is defined in Notes to Financial Statements as of June 30, 2025.
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.
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.
Indirect Cost Rate - 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.
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 2025-001
FINDING 2025-001: NSLDS Status Reporting Error CRITERIA: In accordance with 34 CFR 682.610 (c), Institutions are to report the enrollment statusof students who received Title IV aid to NSLDS. This enrollment information is updated inNSLDS and, as appropriate, is reported to guarantors, lenders, and servicers of federal student loans. A student’s enrollment status determines eligibility for in-school status, deferment andgrace periods as well as for the Department’s payment of interest subsidies to loan holders.SSCR/Enrollment Reporting is not only critical for effective administration of the Title IV student loan programs, but is also required so that the Department can engage in budgetary and policyanalysis. CONDITION: Some student statuses were not reported to NSLDS on time. CAUSE: The Institution did not follow its ordinary procedures to ensure that NSLDS enrollmentreporting was submitted in a timely manner. EFFECT: The USDOE does not have timely information pertaining to student's enrollment statuseswhich can affect loan deferments among other things. NATURE, EXTENT OF ISSUE, AND QUESTIONED COSTS: In 14 instances out of 35 files reviewed,of which NSLDS data for 24 students were reviewed, the students’ enrollment status changes werenot reported to NSLDS in a timely manner. No. of Students FPELL FDLP FSEOG Total Universe 74 286,427 710,426 14,045 1,010,898 Sample Size 35 110,482 358,073 5,000 473,555 Sample for this Attribute 35 110,482 358,073 5,000 473,555 Instances of Non Compliance 14 25,625 171,953 1,000 198,578 Level of Materiality Material RECOMMENDATION: We also recommend that the Institution enact stronger controls to ensure thatall future enrollment reporting is submitted both correctly and timely. VIEWS OF RESPONSIBLE OFFICIAL: The Institution concurs with this finding and has proceduresin place as outlined in the Corrective Action Plan to ensure compliance with requirements.