FAC Explorer

Audit 394669

FY End
2025-06-30
Total Expended
$7.32M
Findings
3
Programs
5
Organization: New England Conservatory of Music (MA)
Year: 2025 Accepted: 2026-03-26
Auditor: RSM US LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1186893 2025-001 Material Weakness Yes N
1186894 2025-001 Material Weakness Yes N
1186895 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $6.11M Yes 1
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $533,836 Yes 0
84.063 FEDERAL PELL GRANT PROGRAM $287,140 Yes 1
84.033 FEDERAL WORK-STUDY PROGRAM $271,237 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $121,247 Yes 1

Contacts

Name Title Type
JNJGQ3UEW516 Kathleen Donahue Auditee
6175851725 Michele Divito Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of New England Conservatory of Music (the Conservatory) under programs of the federal government for the year ended June 30, 2025. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) 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 Conservatory, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the Conservatory.
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.
The Conservatory has not elected to use the de minimis indirect cost rate as allowed under the Uniform Guidance because, at this time, the Conservatory does not have any grants that require application of the overhead rate.
The amount of loans advanced during the year to students and parents under the Federal Direct Loan Program was $6,110,711. The Conservatory is responsible for the performance of certain administrative duties with respect to the Federal Direct Student Loan Program. These distributions and the related funding sources are not included in the Conservatory’s financial statements. The Federal Perkins Loan Program is administered directly by the Conservatory, and balances and transactions related to this program are included in the Conservatory’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Loans outstanding at June 30, 2025, under the revolving Federal Perkins Loan Program under Federal Assistance Listing number 84.038 totaled $452,821. There were no new loans awarded during the year ended June 30, 2025.

Finding Details

Finding 2025-001
Finding 2025 001 – Return of Title IV Funds Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.063, 84.268 Federal Agency: U.S. Department of Education Federal Awards Year 2024-2025 Criteria: Federal regulations require institutions to determine the amount of Title IV aid earned by a student who withdraws by calculating the percentage of the payment period or period of enrollment completed using calendar days completed divided by total calendar days in the period, in accordance with 34 CFR 668.22(e). An accurate calculation of days in the payment period is necessary to determine the correct amount of Title IV aid earned and unearned. Condition: Of the 2 students selected for testing of Title IV disbursements, the Conservatory improperly calculated the number of days used in the Return of Title IV Funds calculation for the Fall 2024 semester, resulting in an incorrect percentage of Title IV aid earned for both students. Consequently, the amount of Title IV aid refunded was not calculated in accordance with federal requirements. Cause: The Conservatory did not have sufficient controls in place to ensure the accurate calculation of calendar days in the payment period used for R2T4 calculations. Effect: As a result, the Conservatory did not properly calculate the amount of Title IV aid earned and unearned, resulting in additional funds returned to the Department. Questioned Costs: $1,108 Repeat Finding: No. Recommendation: The Conservatory should strengthen controls over R2T4 calculations to ensure that the number of calendar days used in determining earned Title IV aid is calculated accurately and in accordance with federal requirements. View of Responsible Officials: Management agrees with the finding. See corrective action plan.