Audit 18645

FY End
2022-12-31
Total Expended
$1.29M
Findings
8
Programs
2
Organization: Midwives College of Utah (UT)
Year: 2022 Accepted: 2023-07-18
Auditor: Sikich LLP

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
21866 2022-002 Significant Deficiency Yes N
21867 2022-003 - - L
21868 2022-001 - - E
21869 2022-003 - - L
598308 2022-002 Significant Deficiency Yes N
598309 2022-003 - - L
598310 2022-001 - - E
598311 2022-003 - - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $810,644 Yes 2
84.063 Federal Pell Grant Program $476,211 Yes 2

Contacts

Name Title Type
K382JTZBG5U6 Whitney Mesyef Auditee
8016495230 Ray Krouse Auditor
No contacts on file

Notes to SEFA

Title: FEDERAL LOAN PROGRAM Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. For the year ended December 31, 2022, Midwives College of Utah acted as a pass-through agency for Direct Federal Stafford Loans (subsidized, unsubsidized and PLUS) to students and parents in the amount of $810,644.
Title: OTHER INFORMATION Accounting Policies: The accompanying schedule of expenditures of federal awards is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Midwives College of Utah did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

FINDING 2022-002: INCORRECT REFUND CALCULATIONS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN#: 84.063 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculation. We consider this finding to be a significant deficiency. This is a repeat of prior year Finding 2021-003. Cause: The condition was caused by not properly adjusting days for a break at Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution credit $304 to the students' accounts and tighten controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-003: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN#: 84.063, 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide enrollment update responses in a timely manner for one student who graduated. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution tighten controls enrollment reporting. As this was an isolated incident, we are issuing a non-compliance finding. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-001: MISSING PROOF OF LOAN ENTRANCE COUNSELING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Eligibility (E.) Criteria: Each student that receives Federal Direct Loans is required to have entrance counseling before release of the first disbursement (34CFR 682.604, 685.304). Condition: We tested thirty-seven files, twenty-seven of which were Federal Direct Loan recipients, and noted one student missing entrance counseling. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result of not conducting entrance counseling is students may be uninformed about the responsibilities and consequences of borrowing funds. Question Costs: $5,541 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution improve controls over retaining documentation on entrance interviews. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-003: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN#: 84.063, 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide enrollment update responses in a timely manner for one student who graduated. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution tighten controls enrollment reporting. As this was an isolated incident, we are issuing a non-compliance finding. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-002: INCORRECT REFUND CALCULATIONS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN#: 84.063 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions - Return of Title IV Funds (N.) Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirteen drop students and found two incorrect refund calculation. We consider this finding to be a significant deficiency. This is a repeat of prior year Finding 2021-003. Cause: The condition was caused by not properly adjusting days for a break at Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution credit $304 to the students' accounts and tighten controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-003: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN#: 84.063, 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide enrollment update responses in a timely manner for one student who graduated. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution tighten controls enrollment reporting. As this was an isolated incident, we are issuing a non-compliance finding. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-001: MISSING PROOF OF LOAN ENTRANCE COUNSELING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Eligibility (E.) Criteria: Each student that receives Federal Direct Loans is required to have entrance counseling before release of the first disbursement (34CFR 682.604, 685.304). Condition: We tested thirty-seven files, twenty-seven of which were Federal Direct Loan recipients, and noted one student missing entrance counseling. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result of not conducting entrance counseling is students may be uninformed about the responsibilities and consequences of borrowing funds. Question Costs: $5,541 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution improve controls over retaining documentation on entrance interviews. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.
FINDING 2022-003: INACCURATE ENROLLMENT STATUS REPORTING FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM, FEDERAL DIRECT LOAN PROGRAM ALN#: 84.063, 84.268 FEDERAL AWARD YEAR: YEAR ENDED DECEMBER 31, 2022 Compliance Requirement: Reporting (L.) Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: The Institution did not provide enrollment update responses in a timely manner for one student who graduated. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result is the Department of Education was not made aware of the changes in student statuses in a timely manner. Question Costs: $0 Statistical sampling was not used when making sample selections. See schedule of findings and questioned costs for table. Recommendation: We recommend the Institution tighten controls enrollment reporting. As this was an isolated incident, we are issuing a non-compliance finding. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.