FAC Explorer

Audit 30960

FY End
2022-06-30
Total Expended
$70.03M
Findings
8
Programs
12
Organization: Marian University (IN)
Year: 2022 Accepted: 2022-11-27
Auditor: Forvis LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
34454 2022-003 Significant Deficiency - N
34455 2022-001 Material Weakness - L
34456 2022-001 Material Weakness - L
34457 2022-002 Material Weakness - I
610896 2022-003 Significant Deficiency - N
610897 2022-001 Material Weakness - L
610898 2022-001 Material Weakness - L
610899 2022-002 Material Weakness - I

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $59.77M Yes 1
84.063 Federal Pell Grant Program $3.65M Yes 0
84.425 Education Stabilization Fund - Student Portion (covid-19) $2.53M Yes 1
84.425 Education Stabilization Fund - Institutional Portion (covid-19) $2.36M Yes 2
84.038 Federal Perkins Loan Program $559,693 Yes 0
84.033 Federal Work-Study Program $363,515 Yes 0
84.336 Teacher Quality Partnership Grants $274,629 - 0
84.002 Adult Education - Basic Grants to States $171,964 - 0
93.866 Aging Research $156,033 - 0
84.007 Federal Supplemental Educational Opportunity Grants $105,044 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $45,264 Yes 0
84.425 Education Stabilization Fund - Governor's Emergency Education Relief Fund (covid-19) $44,857 Yes 0

Contacts

Name Title Type
PX7RR8JTNA43 Kay Walter Auditee
3179556024 Rick Wittgren Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Marian University (University) under programs of the federal government for the year ended June 30, 2022. The accompanying notes are an integral part of this Schedule. The information is this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The Federal Perkins Loan Program (Assistance Listing Number 84.038) is administered directly by the University, and balances and transactions relating to these programs are included in the Universitys basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2022 totaled $271,113.
Title: Subrecipients Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Marian University (University) under programs of the federal government for the year ended June 30, 2022. The accompanying notes are an integral part of this Schedule. The information is this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. Marian University provided no federal awards to subrecipients.
Title: Federal Loan Programs Accounting Policies: The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Marian University (University) under programs of the federal government for the year ended June 30, 2022. The accompanying notes are an integral part of this Schedule. The information is this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets or cash flows of the University. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule, if any, represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University also participates in the Federal Direct Loan Program. The dollar amounts are listed in the schedule of federal awards although the University is not the recipient of the funds. Such programs are considered a component of the student financial assistance cluster. New loans processed for students during the year ended June 30, 2022 were as follows: 1) Direct Subsidized (84.268) - $6,719,388; 2) Direct Unsubsidized (84.268) - $33,422,844; 3) PLUS (84.268) - $3,405,745; and 4) GradPLUS (84.268) - $16,255,173. The total is $59,773,150.

Finding Details

Finding 2022-003
Federal Program Name: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Federal Direct Loan Program ? 84.268 Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Special Tests & Provisions ? Lender Notification Condition: The University failed to update the NSLDS for certain students that withdrew during the school year ? Other Instance of Noncompliance and Significant Deficiency Questioned Costs: None Context: During testing of compliance with the lender notification compliance requirement, 2 out of 25 selections resulted in errors. From a population of 561 transactions, 25 were selected for testing. Errors consisted of 2 students for which the effective date of their withdrawal was not updated in the NSLDS. Our sample was not, and was not intended to be, statistically valid. Cause: The students in question were dismissed based on poor academic performance, but the University overlooked the changes in the status of these students when submitting their roster file to the Clearinghouse. Repeat Finding: No Recommendation: We recommend the University report the correct student status change to the NSLDS within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-001
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act (ARPA) Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Student Portion, 84.425E and Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Reporting Condition: The University failed to file certain reports required for the student portion of ARPA funds received and expended. In addition, the report for the institutional portion of ARPA funds was filed late ? Material Weakness and Material Noncompliance Questioned Costs: None Context: During testing of compliance with the reporting compliance requirement, the University did not file the required quarterly reports for the student portion of the Higher Education Emergency Relief Funds (HEERF) and instead only filed one annual report at year end. The information regarding the number of eligible students was also not included on the annual report filed. The quarterly report selected for the institutional portion of the HEERF grant was filed after the required due date. Effect: The required reports were not filed in a timely manner. Cause: While the University filed the required reports for the institutional portion of HEERF funds, it did not file the related reports for the student portion and did not meet the required deadlines. Repeat Finding: No Recommendation: We recommend the University create a summary of the required reports and deadlines to ensure they are being filed within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-001
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act (ARPA) Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Student Portion, 84.425E and Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Reporting Condition: The University failed to file certain reports required for the student portion of ARPA funds received and expended. In addition, the report for the institutional portion of ARPA funds was filed late ? Material Weakness and Material Noncompliance Questioned Costs: None Context: During testing of compliance with the reporting compliance requirement, the University did not file the required quarterly reports for the student portion of the Higher Education Emergency Relief Funds (HEERF) and instead only filed one annual report at year end. The information regarding the number of eligible students was also not included on the annual report filed. The quarterly report selected for the institutional portion of the HEERF grant was filed after the required due date. Effect: The required reports were not filed in a timely manner. Cause: While the University filed the required reports for the institutional portion of HEERF funds, it did not file the related reports for the student portion and did not meet the required deadlines. Repeat Finding: No Recommendation: We recommend the University create a summary of the required reports and deadlines to ensure they are being filed within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-002
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Procurement, suspension and debarment Condition: The University did not comply with the federal procurement, suspension and debarment requirements ? Material Weakness and Material Noncompliance Questioned Costs: $633,205, calculated as costs identified in our sample that were not expended in accordance with the applicable procurement, suspension and debarment requirements. Context: During testing of compliance with the procurement, suspension and debarment compliance requirements, 11 of 14 selections resulted in errors. From a population of 69 expenditure transactions with a total dollar value of $1,996,507, a sample of 14 transactions valued at $638,171 were selected for testing. 11 of the items sampled did not apply the applicable procurement, suspension and debarment requirements in identifying and selecting a vendor. Our sample was not, and was not intended to be, statistically valid. Effect: Goods and services were procured without applying the appropriate compliance guidelines. Cause: While the University has a draft procurement policy, it is not necessarily compliant with federal regulations and was not consistently applied to acquisitions funded with ARPA dollars. Repeat Finding: No Recommendation: We recommend the University update the procurement policies to comply with federal requirements and ensure the updated policy is followed when acquiring goods and services using federal funds. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-003
Federal Program Name: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Federal Direct Loan Program ? 84.268 Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Special Tests & Provisions ? Lender Notification Condition: The University failed to update the NSLDS for certain students that withdrew during the school year ? Other Instance of Noncompliance and Significant Deficiency Questioned Costs: None Context: During testing of compliance with the lender notification compliance requirement, 2 out of 25 selections resulted in errors. From a population of 561 transactions, 25 were selected for testing. Errors consisted of 2 students for which the effective date of their withdrawal was not updated in the NSLDS. Our sample was not, and was not intended to be, statistically valid. Cause: The students in question were dismissed based on poor academic performance, but the University overlooked the changes in the status of these students when submitting their roster file to the Clearinghouse. Repeat Finding: No Recommendation: We recommend the University report the correct student status change to the NSLDS within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-001
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act (ARPA) Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Student Portion, 84.425E and Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Reporting Condition: The University failed to file certain reports required for the student portion of ARPA funds received and expended. In addition, the report for the institutional portion of ARPA funds was filed late ? Material Weakness and Material Noncompliance Questioned Costs: None Context: During testing of compliance with the reporting compliance requirement, the University did not file the required quarterly reports for the student portion of the Higher Education Emergency Relief Funds (HEERF) and instead only filed one annual report at year end. The information regarding the number of eligible students was also not included on the annual report filed. The quarterly report selected for the institutional portion of the HEERF grant was filed after the required due date. Effect: The required reports were not filed in a timely manner. Cause: While the University filed the required reports for the institutional portion of HEERF funds, it did not file the related reports for the student portion and did not meet the required deadlines. Repeat Finding: No Recommendation: We recommend the University create a summary of the required reports and deadlines to ensure they are being filed within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-001
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act (ARPA) Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Student Portion, 84.425E and Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Reporting Condition: The University failed to file certain reports required for the student portion of ARPA funds received and expended. In addition, the report for the institutional portion of ARPA funds was filed late ? Material Weakness and Material Noncompliance Questioned Costs: None Context: During testing of compliance with the reporting compliance requirement, the University did not file the required quarterly reports for the student portion of the Higher Education Emergency Relief Funds (HEERF) and instead only filed one annual report at year end. The information regarding the number of eligible students was also not included on the annual report filed. The quarterly report selected for the institutional portion of the HEERF grant was filed after the required due date. Effect: The required reports were not filed in a timely manner. Cause: While the University filed the required reports for the institutional portion of HEERF funds, it did not file the related reports for the student portion and did not meet the required deadlines. Repeat Finding: No Recommendation: We recommend the University create a summary of the required reports and deadlines to ensure they are being filed within the required timeframe. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.
Finding 2022-002
Federal Program Name: COVID-19 - Education Stabilization Funds ? American Rescue Plan Act Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Higher Education Emergency Relief Fund ? Institutional Portion, 84.425F Award Year: July 1, 2021 ? June 30, 2022 Criteria or Specific Requirement: Procurement, suspension and debarment Condition: The University did not comply with the federal procurement, suspension and debarment requirements ? Material Weakness and Material Noncompliance Questioned Costs: $633,205, calculated as costs identified in our sample that were not expended in accordance with the applicable procurement, suspension and debarment requirements. Context: During testing of compliance with the procurement, suspension and debarment compliance requirements, 11 of 14 selections resulted in errors. From a population of 69 expenditure transactions with a total dollar value of $1,996,507, a sample of 14 transactions valued at $638,171 were selected for testing. 11 of the items sampled did not apply the applicable procurement, suspension and debarment requirements in identifying and selecting a vendor. Our sample was not, and was not intended to be, statistically valid. Effect: Goods and services were procured without applying the appropriate compliance guidelines. Cause: While the University has a draft procurement policy, it is not necessarily compliant with federal regulations and was not consistently applied to acquisitions funded with ARPA dollars. Repeat Finding: No Recommendation: We recommend the University update the procurement policies to comply with federal requirements and ensure the updated policy is followed when acquiring goods and services using federal funds. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.