EIN: 391853833
UEI: Q6L4B4R42127
Audited by: Ernst & Young U.S. LLP
Cognizant agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on April 10, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by October 10, 2026 (42 days from today).
What is a management decision? →FAC accepted this audit on April 14, 2025 — management decision was due October 14, 2025.
FAC accepted this audit on April 17, 2024 — management decision was due October 17, 2024.
FAC accepted this audit on April 6, 2023 — management decision was due October 6, 2023.
FAC accepted this audit on March 30, 2022 — management decision was due September 30, 2022.
FAC accepted this audit on May 6, 2021 — management decision was due November 6, 2021.
Ascendium Education Group, Inc. and Affiliates is responsible for properly transferring rebates of funds on loans for which the guaranty agency has received a default aversion fee and for which the guaranty agency has subsequently paid as a default claim. This is done by deducting the rebate funds from the default aversion fee calculation each month for which Ascendium Education Group, Inc. and Affiliates transfers default aversion fees to its Operating Fund. It was determined that for fiscal year 2020 that Ascendium Education Group, Inc. and Affiliates had deducted less than the required rebate funds from its calculated and transferred default aversion fees between the Operating Fund and Federal Fund. Cause: The loan detail reports used to calculate the monthly rebates of default aversion fees from the Federal Fund to the Operating Fund did not include a subset of loans which should have been included. While management identified the issue in January 2020, they were not able to correct the program logic issue until December 2020. Effect or potential effect: Ascendium Education Group, Inc. and Affiliates was not in compliance with the requirement to transfer default aversion fee rebates from the Operating Fund to the Federal Fund resulted in insufficient monthly returns of funds to the Federal Fund beginning in January 2020 through December 2020. Questioned costs: 84.032G ? $84,416 represents rebates of default aversion fees which were not transferred to the Federal Fund for 2020. Context: The total default aversion fee rebates during the year were $15,396,879. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Ascendium Education Group, Inc. and Affiliates has corrected the program logic prior to the end of the year; we recommend no further action. Ascendium Education Group, Inc. and Affiliates should continue with its current plan to remediate the payment of default aversion fee rebates in 2021. Views of responsible officials: Ascendium Education Group, Inc. and Affiliates agrees with the comment and has developed a corrective action plan to correct the finding.
Show full finding ▾Hide full finding ▴Finding 2020-001 Information on the federal program: Federal Program Name: 84.032G, Federal Family Education Loans (Guaranty Agencies) Federal Agency: U.S. Department of Education Description: Noncompliance with default aversion fee rebates Criteria or specific requirement (including statutory, regulatory, or other citation): Default Aversion Fees ? A guaranty agency may transfer a default aversion fee from its Federal Fund to its Operating Fund equal to 1% of the total unpaid principal and accrued interest owed on loans on which the lender requests default aversion assistance. However, if a loan on which the guaranty agency has received the default aversion fee is subsequently paid as a default claim, the guaranty agency must rebate funds to the Federal Fund by deducting the rebate funds from the default aversion fee calculation. The fees may be transferred from the Federal Fund to the Operating Fund no more frequently than monthly and may not be paid more than once on any loan (34 CFR section 682.404(j)). Condition: Ascendium Education Group, Inc. and Affiliates is responsible for properly transferring rebates of funds on loans for which the guaranty agency has received a default aversion fee and for which the guaranty agency has subsequently paid as a default claim. This is done by deducting the rebate funds from the default aversion fee calculation each month for which Ascendium Education Group, Inc. and Affiliates transfers default aversion fees to its Operating Fund. It was determined that for fiscal year 2020 that Ascendium Education Group, Inc. and Affiliates had deducted less than the required rebate funds from its calculated and transferred default aversion fees between the Operating Fund and Federal Fund. Cause: The loan detail reports used to calculate the monthly rebates of default aversion fees from the Federal Fund to the Operating Fund did not include a subset of loans which should have been included. While management identified the issue in January 2020, they were not able to correct the program logic issue until December 2020. Effect or potential effect: Ascendium Education Group, Inc. and Affiliates was not in compliance with the requirement to transfer default aversion fee rebates from the Operating Fund to the Federal Fund resulted in insufficient monthly returns of funds to the Federal Fund beginning in January 2020 through December 2020. Questioned costs: 84.032G ? $84,416 represents rebates of default aversion fees which were not transferred to the Federal Fund for 2020. Context: The total default aversion fee rebates during the year were $15,396,879. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: Ascendium Education Group, Inc. and Affiliates has corrected the program logic prior to the end of the year; we recommend no further action. Ascendium Education Group, Inc. and Affiliates should continue with its current plan to remediate the payment of default aversion fee rebates in 2021. Views of responsible officials: Ascendium Education Group, Inc. and Affiliates agrees with the comment and has developed a corrective action plan to correct the finding.
Contact: Hope Merry, Chief Financial Officer Corrective Action Planned: Management self-identified and corrected an issue with the program logic used to calculate Default Aversion Fees (DAF). The program was incorrectly excluding rebates related to billings that occurred during the period the company was under the Voluntary Flexible Agreement (VFA) when DAF was not billed or rebated but rather a Performance Based Fee was calculated. The issue with program logic was resolved prior to the end of the 2020 Fiscal Year, with the overstatement in 2020 of $84,416 being returned to the Federal Fund on March 25, 2021. The error was 1% of total 2020 Default Aversion Rebates. We continue to review the output of our reports for accuracy and are working with our information systems staff to make improvements in the process to gain efficiencies. Anticipated Completion Date: The program issues were resolved and funds plus interest have been deposited into the Federal Fund on March 25, 2021.
FAC accepted this audit on April 9, 2020 — management decision was due October 9, 2020.
FAC accepted this audit on May 2, 2019 — management decision was due November 2, 2019.
GSA_MIGRATION
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GSA_MIGRATION
FAC accepted this audit on September 24, 2018 — management decision was due March 24, 2019.
FAC accepted this audit on April 16, 2017 — management decision was due October 16, 2017.
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