Lubbock Hair Academy hopes to remove heightened cash monitoring
LUBBOCK, TX (KCBD) - The Lubbock Hair Academy is on heightened cash monitoring from the U.S. Department of Education after their last audit.
The US DOE places institutions on heightened cash monitoring if they have federal, or financial compliance issues.
Since Phillip Vivial took over ownership of Lubbock Hair Academy 16 years ago from his father, the academy has been on the heightened cash monitoring list twice – once in 2006, and now in 2015.
This is the first year that this is public information.
"Every year we submit audited financial statements and a compliance audit, and the Department of Education reviews that," Vivial said, "and then they make a determination and when they do, it will either come out as it passed or you might be placed on a heightened cash monitoring."
The academy made this list after a "small finding on a refund" when they turned in their audits.
"It was a student withdrawal, and we figured out their return of Title Four funds," Vivial said. "When the auditor found it, it was made two days past the 30 days, the way it cleared the bank. It was like 32 days instead of 30."
Which means the U.S. Department of Education will make sure the academy credits their student's accounts for grants, and then they will reimburse the school afterwards.
Before, Vivial said they pulled the funds first, and then would credit the accounts. He said heightened cash monitoring has no effect on students.
"It's really some extra steps in our accounting," Vivial said, "and just a way of keeping track, making sure everything is done in a timely fashion."
If the academy does not get off this heightened cash monitoring, it could face major consequences.
"Eventually we could lose accreditation and lose participation with the department of education," Vivial said, "and lose the ability for students to use federal funds."
This means the academy would lose student enrollment exponentially, but Vivial said when they turn their new audits in June 30, he hopes they will be taken off the heightened cash monitoring list for 2016.
"Hopefully we have all our plans and procedures in place to keep from anything happening like this in the future," he said. "Getting back in perfect standing with the Department of Education is a top goal."
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