Finding 513135 (2023-003)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-12-05
Audit: 331122

AI Summary

  • Answer: The College missed the deadline for submitting its audited financial statements.
  • Trend: This could indicate potential issues with compliance and financial oversight.
  • List: Follow up by ensuring timely submissions in the future and reviewing processes for financial reporting.

Finding Text

The College did not submit its audited financial statements to the Federal Audit Clearinghouse by the required due date.

Corrective Action Plan

Beginning in April 2023, the College began ongoing conversations with its bondholders for relief of aniticipated Bond covenant defaults. Initials communications informed bondholders of the need for their support to implement strategic changes to the College's business model and to hence address and avoid covenant defaults. The College's independent auditors required an executed forbearance agreement to be in place prior to issuing the financial statements for the 2023 fiscal year. The terms and scope of the Forbearance Agreement have been negotiated with the bondholders, and as of October 17, 2024 a final version of the Agreement has been fully executed. As the agreement was executed and shared with the auditors, the Colleges 2023 audited financial statements were prepared for issuance. The college administration believes that this is a one-time event and does not anticipate a similar situation in upcoming years.

Categories

No categories assigned yet.

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.45M
84.063 Federal Pell Grant Program $1.91M
17.271 Work Opportunity Tax Credit Program (wotc) $803,614
84.031 Higher Education Institutional Aid $216,523
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $158,099
84.007 Federal Supplemental Educational Opportunity Grants $146,094
84.033 Federal Work-Study Program $117,849