FAC Explorer

Audit 48718

FY End
2022-06-30
Total Expended
$4.29M
Findings
2
Programs
6
Organization: Landmark College, INC (VT)
Year: 2022 Accepted: 2023-03-28
Auditor: O'Brien Shortle Reynolds & Sabotka PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
50011 2022-002 Significant Deficiency - L
626453 2022-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $3.01M Yes 0
84.425 Education Stabilization Fund $596,408 Yes 1
84.063 Federal Pell Grant Program $416,095 Yes 0
84.033 Federal Work-Study Program $68,156 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $68,107 Yes 0
47.076 Education and Human Resources $25,445 - 0

Contacts

Name Title Type
TPRBJ5MBK225 Michael Mertes Auditee
8023877179 Karen A. Bartlett, CPA Auditor
No contacts on file

Notes to SEFA

Title: LOAN ADVANCES AND BALANCES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Landmark College, Inc., presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Loans advanced during the year to students under federal programs are as follows for the year ended June 30, 2022: Federal Direct Loan Program Subsidized$ 432,610 Federal Direct Loan Program Unsubsidized426,216 Federal PLUS Loan Program 2,147,257 Total$ 3,006,083 There were Federal Grants Receivable of $203,963 and Federal Loans and Grants Payable (student refunds) of $3,735 as of June 30, 2022. $50,707 of the Federal Grants Receivable is due to a prior period adjustment (see below).Loan balances receivable under the Federal Direct Loan Program at June 30, 2022, are not available.
Title: LOAN ADVANCES AND BALANCES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Landmark College, Inc., presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Loans advanced during the year to students under federal programs are as follows for the year ended June 30, 2022: Federal Direct Loan Program Subsidized$ 432,610 Federal Direct Loan Program Unsubsidized426,216 Federal PLUS Loan Program 2,147,257 Total$ 3,006,083 There were Federal Grants Receivable of $203,963 and Federal Loans and Grants Payable (student refunds) of $3,735 as of June 30, 2022. $50,707 of the Federal Grants Receivable is due to a prior period adjustment (see below).Loan balances receivable under the Federal Direct Loan Program at June 30, 2022, are not available.
Title: LOAN ADVANCES AND BALANCES Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Landmark College, Inc., presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Loans advanced during the year to students under federal programs are as follows for the year ended June 30, 2022: Federal Direct Loan Program Subsidized$ 432,610 Federal Direct Loan Program Unsubsidized426,216 Federal PLUS Loan Program 2,147,257 Total$ 3,006,083 There were Federal Grants Receivable of $203,963 and Federal Loans and Grants Payable (student refunds) of $3,735 as of June 30, 2022. $50,707 of the Federal Grants Receivable is due to a prior period adjustment (see below).Loan balances receivable under the Federal Direct Loan Program at June 30, 2022, are not available.
Title: PRIOR PERIOD ADJUSTMENT Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of Landmark College, Inc., presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance, Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented or used in the preparation of the basic financial statements. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. During the current year, the College determined that they had undercharged the federal grant for expenses in the prior year. The College corrected their quarterly reporting regarding the grant and booked a receivable of $50,707 for expenses incurred in 2020-2021 that were allowable under the HEERF grant. The costs are included the in the current year Schedule of Federal Awards.

Finding Details

Finding 2022-002
2022-002 Accurate Quarterly Reporting Federal Agency: U.S. Department of Education 84.425F HEERF ? Institutional Portion Criteria ? Per Federal Regulation 2 CFR Section 200.329(b), the Department of Education must require a recipient to provide financial data and accomplishments. The Department of Education required quarterly reports to be prepared by all recipients of HEERF funds, outlining the student funds used and the institutional funds used. Condition ? During review of the quarterly reports for HEERF, and reviewing against expenses, it was noted that the College was not submitting the reports with the expenses they intended to charge to HEERF in the quarter the expense was incurred. Questioned Costs ? N/A. Effect ? The quarterly reports submitted do not accurately reflect the use of the HEERF funding. Perspective Information ? There was no strong guidance for the College on reporting requirements for this grant. The College was under the impression that they should report the expenses they chose to apply to the grant in the quarter they chose to charge the grant rather than the quarter the expense was incurred. Cause ? Due to the lack of guidance, the College was incorrectly reporting the expenses in the quarter in which they applied the expense against the grant, rather than the quarter in which the grant expense was incurred. Recommendation ? We recommend that the College amend their prior quarterly reports and repost, which they are in the process of doing.
Finding 2022-002
2022-002 Accurate Quarterly Reporting Federal Agency: U.S. Department of Education 84.425F HEERF ? Institutional Portion Criteria ? Per Federal Regulation 2 CFR Section 200.329(b), the Department of Education must require a recipient to provide financial data and accomplishments. The Department of Education required quarterly reports to be prepared by all recipients of HEERF funds, outlining the student funds used and the institutional funds used. Condition ? During review of the quarterly reports for HEERF, and reviewing against expenses, it was noted that the College was not submitting the reports with the expenses they intended to charge to HEERF in the quarter the expense was incurred. Questioned Costs ? N/A. Effect ? The quarterly reports submitted do not accurately reflect the use of the HEERF funding. Perspective Information ? There was no strong guidance for the College on reporting requirements for this grant. The College was under the impression that they should report the expenses they chose to apply to the grant in the quarter they chose to charge the grant rather than the quarter the expense was incurred. Cause ? Due to the lack of guidance, the College was incorrectly reporting the expenses in the quarter in which they applied the expense against the grant, rather than the quarter in which the grant expense was incurred. Recommendation ? We recommend that the College amend their prior quarterly reports and repost, which they are in the process of doing.