Audit 31905

FY End
2022-06-30
Total Expended
$14.20M
Findings
8
Programs
6
Organization: University of Rio Grande (OH)
Year: 2022 Accepted: 2023-03-05

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
31061 2022-004 - - E
31062 2022-005 Material Weakness - L
31063 2022-005 Material Weakness - L
31064 2022-005 Material Weakness - L
607503 2022-004 - - E
607504 2022-005 Material Weakness - L
607505 2022-005 Material Weakness - L
607506 2022-005 Material Weakness - L

Programs

Contacts

Name Title Type
QDJAQDD9QLS6 Meghann Fraley Auditee
7402457267 Keith Martinez Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the "Schedule") includes the federal grant activity of University of Rio Grande and its subsidiary (the "University") under programs of the federal government for the year ended June 30, 2022. The information in the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (the "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 in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The pass-through entity identifying numbers are presented where available. The University has elected not to use the 10 percent de minimis indirect cost rate to recover indirect costs, as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate.

Finding Details

Assistance Listing Number, Federal Agency, and Program Name - ALN No. 84.268, Department of Education, Federal Direct Student Loans Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Direct Finding Type - Noncompliance with questioned costs greater than $25,000 Repeat Finding - No Criteria - The total amount of all Direct PLUS Loans that a parent or parents may borrow on behalf of each dependent student, or that a graduate or professional student may borrow, for any academic year of study may not exceed the cost of attendance minus other estimated financial assistance for the student (34 CFR 685.203(f)). Condition - The University disbursed Direct Plus Loans in excess of cost of attendance minus other estimated financial assistance for a student. Questioned Costs - $44,021 Identification of How Questioned Costs Were Computed - Total Direct Plus Loan disbursed to the student in excess of cost of attendance minus other estimated financial assistance. Context - One student was identified by the University as having received a Direct Plus Loan in excess of the allowed limit during Spring 2022 term. The noncompliance occurred due to a fraud committed and the University's internal control processes identified the issue. The University is working with the Department of Education on the issue and has not yet returned the funds; as such, questioned costs are reported. Cause and Effect - A fraud was committed, which led to Direct Plus Loan funds being disbursed in excess of the allowed limit. The University had controls in place to review for significant refunds to students or parents in excess of allowable levels, which led to the noncompliance being identified. Recommendation - The University should continue to work with the Department of Education on the situation to determine how and when to return funds. Views of Responsible Officials and Planned Corrective Actions - The University is working closely with the U.S. Department of Education?s Office of Inspector General on this fraudulent activity. The University will continue to monitor student financial aid accounts using the current internal controls which led to the fraud discovery.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.
Assistance Listing Number, Federal Agency, and Program Name - ALN No. 84.268, Department of Education, Federal Direct Student Loans Federal Award Identification Number and Year - Not applicable Pass-through Entity - Not applicable Direct Finding Type - Noncompliance with questioned costs greater than $25,000 Repeat Finding - No Criteria - The total amount of all Direct PLUS Loans that a parent or parents may borrow on behalf of each dependent student, or that a graduate or professional student may borrow, for any academic year of study may not exceed the cost of attendance minus other estimated financial assistance for the student (34 CFR 685.203(f)). Condition - The University disbursed Direct Plus Loans in excess of cost of attendance minus other estimated financial assistance for a student. Questioned Costs - $44,021 Identification of How Questioned Costs Were Computed - Total Direct Plus Loan disbursed to the student in excess of cost of attendance minus other estimated financial assistance. Context - One student was identified by the University as having received a Direct Plus Loan in excess of the allowed limit during Spring 2022 term. The noncompliance occurred due to a fraud committed and the University's internal control processes identified the issue. The University is working with the Department of Education on the issue and has not yet returned the funds; as such, questioned costs are reported. Cause and Effect - A fraud was committed, which led to Direct Plus Loan funds being disbursed in excess of the allowed limit. The University had controls in place to review for significant refunds to students or parents in excess of allowable levels, which led to the noncompliance being identified. Recommendation - The University should continue to work with the Department of Education on the situation to determine how and when to return funds. Views of Responsible Officials and Planned Corrective Actions - The University is working closely with the U.S. Department of Education?s Office of Inspector General on this fraudulent activity. The University will continue to monitor student financial aid accounts using the current internal controls which led to the fraud discovery.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.
Assistance Listing Number, Federal Agency, and Program Name - ALN Nos. 84.425E, 84.425F, 84.425M; Department of Education; Higher Education Emergency Relief Fund- Student Aid and Higher Education Emergency Relief Fund- Institutional Portion, Higher Education Emergency Relief Fund- Strengthening Institutions Program Federal Award Identification Number and Year - Not applicable Pass through Entity - Not applicable Direct Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - CARES Act 18004(e) and the CRRSAA 314(e) require an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. ARP Act 2003 specifies that the same terms and conditions of CRRSAA 314 apply to HEERF III funds. While the acts do not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, pursuant to these requirements, the Department of Education required quarterly public reporting of student portion and institutional portion awards. The Department of Education has identified certain key data to include in the reporting that should prescribe to identified criteria. Condition A certain quarterly report submitted did not include the key data in line with the criteria identified. Questioned Costs - None Identification of How Questioned Costs Were Computed - not applicable Context - Of the three reports tested, the June 2022 combined quarterly report did not include institutional portion expenditures in line with the identified criteria. Institutional expenditures should have been reported for the quarter ending June 2022, but were improperly reported as institutional expenditures to date for the award. Cause and Effect - The University did not properly identify all required criteria for reporting in the combined quarterly report for June 2022, which resulted in institutional expenditures being reported incorrectly in the quarterly report. Recommendation - The University should establish a process in order to ensure that all required reports are reviewed for compliance with the identified criteria for each key line item. Views of Responsible Officials and Planned Corrective Actions - Data presented in the June 2022 HEERF disclosure should have reflected the quarterly expenses. However, cumulative expense for HEERF related to the disclosure request was given instead of the quarter in question. HEERF disclosures in the future will be evaluated prior to posting by the required disclosure date.