FAC Explorer

Audit 400663

FY End
2025-05-31
Total Expended
$9.07M
Findings
10
Programs
7
Organization: Hiram College (OH)
Year: 2025 Accepted: 2026-05-05
Auditor: MALONEY AND NOVOTNY LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1213747 2025-003 Material Weakness Yes N
1213748 2025-003 Material Weakness Yes N
1213749 2025-003 Material Weakness Yes N
1213750 2025-003 Material Weakness Yes N
1213751 2025-003 Material Weakness Yes N
1213752 2025-002 Material Weakness Yes L
1213753 2025-002 Material Weakness Yes L
1213754 2025-002 Material Weakness Yes L
1213755 2025-002 Material Weakness Yes L
1213756 2025-002 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $5.32M Yes 2
84.063 FEDERAL PELL GRANT PROGRAM $2.18M Yes 2
84.033 FEDERAL WORK-STUDY PROGRAM $576,808 Yes 2
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $493,643 Yes 2
59.059 CONGRESSIONAL GRANTS $303,369 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $194,638 Yes 2
10.664 COOPERATIVE FORESTRY ASSISTANCE $499 Yes 0

Contacts

Name Title Type
V8HZGBWUKGA5 Tim Novotny Auditee
3305693211 Steve Ansberry Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Hiram College (College) under programs of the federal government for the period July 1, 2024 to May 31, 2025. The accompanying notes are an integral part of this Schedule. 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 operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
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 expenditrues are not allowable or are limited as to reimbursement.
The College has elected not to use the 10% de minimis indirect cost rate allowed under the Uniform Guidance.
The federal loan program listed subsequently is administered directly by the College and balances and transactions relating to this program are included in the College's consolidated financial statements. Loans outstanding at the beginning of the year are included in the federal expenditures presented int he Schedule. There were no loans made during the year. The outstanding balance of Perkins loan was $447,961 at May 31, 2025.
The amount considred expended for the Ohio Energy Loan Program, assistance listing 81.041, equals the beginning balance of the loans as there were no new loans made or received during the year. The College is currently paying the loan back and, at May 31, 2025 the balance of the loan is $1,780,811.
The College did not provide federal awards to any subrecipients for the period July 1, 2024 to May 31, 2025.

Finding Details

Finding 2025-003
Criteria: In order for an institution to participate in any Title IV program, the institution must be financially responsible. One of the general standards for being considered financially responsible per 34 CFR section 668.171(b) is to obtain a composite score of at least 1.5. An institution that does not meet one or more of the general standards must comply with the alternative standards and requirements of financial responsibility under 34 CFR section 668.175. Condition: The College's composite score based upon the audited financial statements as of May 31, 2025 was less than 1.5. Cause: The College was impacted by multi-year operating losses and has borrowed from its endowment over multiple years to meet liquidity needs. As a result, at May 31, 2025, the College's composite score was negatively impacted. Effect: The College did not meet the definition of being financially responsible for the period ending May 31, 2025 under the general standards and, in turn, must comply with the alternative standards. Recommendation: The College is reviewing its operations to determine the best approach to maintain adequate levels of liquidity, in addition to improving its operating revenues. Views of responsible officials: The College agrees with the finding. Refer to the Corrective Action Plan.
Finding 2025-002
Criteria: 2 CFR 500.512(a)(1) states that the audit, the data collection form, and the reporting package must be submitted within 30 calendar days after the auditee receives the auditors' report or nine months after the end of the audit period (whichever is earlier). Condition: The College did not timely submit the Single Audit Reporting Package for the period July 1, 2024 to May 31, 2025. Cause: During the period July 1, 2024 to May 31, 2025, the College experienced turnover in the accounting department that resulted in delays to the audit. Effect: The College could be subject to additional compliance reviews. Recommendation: We recommend the College implements policies and procedures to ensure the accounting records are prepared and reconciled in a timely manner to ensure the audit and submission of the data collection form are completed in a timely manner. Views of responsible officials: The College agrees with the finding. Refer to the Corrective Action Plan.