Finding 30436 (2022-009)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 24262
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The institution failed to report changes in key personnel (CFO and financial aid administrator) to the Department of Education within the required 10-day timeframe.
  • Impacted Requirements: This violates 34 CFR 600.21(d), which mandates timely reporting of such changes to avoid potential penalties.
  • Recommended Follow-Up: Establish a formal process to ensure all required personnel changes are reported to the DOE promptly to prevent future compliance issues.

Finding Text

Finding No. 2022-009?Special Tests ? Institutional Eligibility Federal Agency: U.S. Department of Education Program: Student Financial Aid Cluster: ALN 84.268, 84.033, 84.063, 84.007, 84.038 Criteria: 34 CFR 600.21(d) requires an eligible institution must report to the Secretary in a manner prescribed by the Secretary no later than 10 days after the change occurs, of any change including a change in the chief financial officer or the individual the institution designates under 34 CFR 668.16(b)(1) as its title IV, HEA Program administrator. Condition: Out of two reportable changes noted during the year, none were reported within 10 days. The chief financial officer and financial aid administrator both changed before or as of June 30, 2022, and were not reported until November 14, 2022. Questioned Costs: None Prevalence: No changes in chief financial officer or financial aid administrator were reported for the year ended June 30, 2022. The sample was not intended to be, and was not, a statistically valid sample. Effect: Not following reporting requirements could result in the DOE withholding payments to the Conservatory. Cause: There was significant turnover in the finance and financial aid department and a lack of understanding of the reporting requirements. Recommendation: We recommend that the Conservatory implement a formal process where, if there is a change in personnel or service providers that are required to be reported as outlined in the CFR, to ensure that the change is reported to the DOE within the required timeframe. View of Responsible Officials and Planned Corrective Actions: Management agrees with the finding and corrective actions have been made.

Categories

Student Financial Aid Eligibility Reporting Special Tests & Provisions

Other Findings in this Audit

  • 30432 2022-008
    Significant Deficiency
  • 30433 2022-009
    Significant Deficiency
  • 30434 2022-010
    Significant Deficiency
  • 30435 2022-009
    Significant Deficiency
  • 30437 2022-009
    Significant Deficiency
  • 30438 2022-003
    Significant Deficiency
  • 30439 2022-004
    Significant Deficiency
  • 30440 2022-005
    Material Weakness
  • 30441 2022-006
    Significant Deficiency Repeat
  • 30442 2022-007
    Significant Deficiency
  • 30443 2022-009
    Significant Deficiency
  • 30444 2022-003
    Significant Deficiency
  • 30445 2022-004
    Significant Deficiency
  • 30446 2022-005
    Material Weakness
  • 30447 2022-006
    Significant Deficiency Repeat
  • 606874 2022-008
    Significant Deficiency
  • 606875 2022-009
    Significant Deficiency
  • 606876 2022-010
    Significant Deficiency
  • 606877 2022-009
    Significant Deficiency
  • 606878 2022-009
    Significant Deficiency
  • 606879 2022-009
    Significant Deficiency
  • 606880 2022-003
    Significant Deficiency
  • 606881 2022-004
    Significant Deficiency
  • 606882 2022-005
    Material Weakness
  • 606883 2022-006
    Significant Deficiency Repeat
  • 606884 2022-007
    Significant Deficiency
  • 606885 2022-009
    Significant Deficiency
  • 606886 2022-003
    Significant Deficiency
  • 606887 2022-004
    Significant Deficiency
  • 606888 2022-005
    Material Weakness
  • 606889 2022-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.39M
84.038 Federal Perkins Loans $1.45M
84.425 Covid-19 - Education Stabilization Fund $468,940
84.033 Federal Work-Study Program $287,786
84.063 Federal Pell Grant Program $222,747
84.007 Federal Supplemental Educational Opportunity Grants $121,997
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $75,888