FAC Explorer

Audit 390762

FY End
2025-06-30
Total Expended
$6.56M
Findings
1
Programs
11
Organization: Benjamin Franklin Cummings Institute of Technology (MA)
Year: 2025 Accepted: 2026-03-09
Auditor: WITHUMSMITH+BROWN PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1176904 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.063 FEDERAL PELL GRANT PROGRAM $2.28M Yes 1
84.268 FEDERAL DIRECT STUDENT LOANS $1.78M Yes 0
11.307 ECONOMIC ADJUSTMENT ASSISTANCE $1.13M Yes 0
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $523,799 Yes 0
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $284,639 Yes 0
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $73,841 Yes 0
16.812 SECOND CHANCE ACT REENTRY INITIATIVE $69,123 Yes 0
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $50,519 Yes 0
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $48,581 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $35,054 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $15,803 Yes 0

Contacts

Name Title Type
LHCCMEWHTKK7 Alan Blair Auditee
6175881363 Brian Page Auditor
No contacts on file

Notes to SEFA

The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Benjamin Franklin Cummings Institute of Technology and Affiliate (“Franklin Cummings Tech”) under programs of the Federal Government for the year ended June 30, 2025. The information on the Schedule is prepared 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 Franklin Cummings Tech, it is not intended to and does not present the financial position, changes in net assets or cash flows of Franklin Cummings Tech.
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.
Franklin Cummings Tech has elected not to use the 10-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
Direct Student Loan Program Franklin Cummings Tech disbursed $1,779,746 of loans under the Federal Direct Student Loans program, which include Stafford Subsidized and Unsubsidized Loans and Parent Plus Loans. It is not practical to determine the balances of the loans outstanding to students of the Franklin Cummings Tech under the program as of June 30, 2025. Franklin Cummings Tech is only responsible for the performance of certain administrative duties and, accordingly, there are no significant continuing compliance requirements, and these loans are not included in Franklin Cummings Tech’s financial statements.

Finding Details

Finding 2025-001
Finding number: 2025-001 Federal agency: U.S. Department of Education Programs: Student Financial Assistance Cluster Assistance Listing #: 84.063 Award year: 2025 Criteria According to 34 CFR 668.22(e): (1) General. The amount of title IV grant or loan assistance that is earned by the student is calculated by— (i) Determining the percentage of title IV grant or loan assistance that has been earned by the student, as described in paragraph (e)(2) of this section; and (ii) Applying this percentage to the total amount of title IV grant or loan assistance that was disbursed (and that could have been disbursed, as defined in paragraph (l)(1) of this section) to the student, or on the student's behalf, for the payment period or period of enrollment as of the student's withdrawal date. (4) Total amount of unearned title IV assistance to be returned. The unearned amount of title IV assistance to be returned is calculated by subtracting the amount of title IV assistance earned by the student as calculated under paragraph (e)(1) of this section from the amount of title IV aid that was disbursed to the student as of the date of the institution's determination that the student withdrew. Condition The Financial Aid Department is responsible for completing the Return of Title IV calculation to determine how much Title IV funds the student earned and how much must be returned to the Department of Education. Once the Return of Title IV calculation is completed, Franklin Cummings Tech is responsible for adjusting the student’s billing statement and returning unearned Title IV funds through the U.S. Department of Education’s Grant Management System (“G5”). During our testing, we noted 1 student, out of a sample of 32, who was awarded Pell after the student’s withdrawal date, which the student had not earned. Cause Franklin Cummings Tech did not consistently follow the procedures in place to monitor student withdrawals and return unearned Title IV funds to the Department of Education. Effect Franklin Cummings Tech granted Pell funds in excess of the amount earned by the student. Questioned Costs $3,697 Perspective Our sample was not, and was not intended to be, statistically valid. Of the 32 students selected for testing, 1 student, or 3.1% of our sample, had unearned Title IV funds that were not returned to the Department of Education. Identification as a Repeat Finding, if applicable Not applicable Recommendation Franklin Cummings Tech should strengthen its internal controls over the Return of Title IV (R2T4) process, including monitoring student withdrawals and reviewing calculations, to ensure earned funds are calculated correctly and unearned portions are returned to the Department of Education. View of Responsible Officials Franklin Cummings Tech agrees with the finding.