FAC Explorer

Audit 343943

FY End
2024-06-30
Total Expended
$6.07M
Findings
4
Programs
11
Organization: Donnelly College (KS)
Year: 2024 Accepted: 2025-02-26
Auditor: Forvis Mazars LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
524542 2024-003 Significant Deficiency - N
524543 2024-003 Significant Deficiency - N
1100984 2024-003 Significant Deficiency - N
1100985 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.031 Higher Education Institutional Aid $2.53M - 0
84.063 Federal Pell Grant Program $1.30M Yes 1
84.268 Federal Direct Student Loans $1.15M Yes 1
84.042 Trio Student Support Services $382,326 - 0
45.130 Promotion of the Humanities Challenge Grants $370,000 - 0
21.027 Covid-19 - Coronavirus State and Local Fiscal Recovery Funds $98,435 - 0
84.007 Federal Supplemental Educational Opportunity Grants $62,263 Yes 0
84.033 Federal Work-Study Program $61,070 Yes 0
84.425 Covid-19 - Education Stabilization Fund - Minority Serving Institutions $56,538 - 0
84.425 Covid-19 - Education Stabilization Fund Student Portion $40,000 - 0
47.076 Stem Education (formerly Education and Human Resources) $11,788 - 0

Contacts

Name Title Type
C4SMU22SU266 Ron Dempsey Auditee
9136218785 Kieth McGovern Auditor
No contacts on file

Notes to SEFA

Title: Note 1. Basis of Presentation Accounting Policies: 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: Donnelly College has not elected to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of the College under programs of the federal government for the year ended June 30, 2024. The information in this 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 (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets or cash flows of the College.
Title: Note 2. Summary of Significant Accounting Policies Accounting Policies: 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: Donnelly College has not elected to use the 10% de minimis indirect cost rate. 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.
Title: Note 3. Indirect Cost Rate Accounting Policies: 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: Donnelly College has not elected to use the 10% de minimis indirect cost rate. Donnelly College has not elected to use the 10% de minimis indirect cost rate.

Finding Details

Finding 2024-003
Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2024 Criteria or Specific Requirement - Verification. According to 34 CFR 668.51 through 668.61, the institution shall require each applicant whose application is selected by the Department of Education to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition - The College did not ensure accurate information on the student's aid files against the information included in the V1 Verification Worksheet. Additionally, the College did not verify the completion of the student verification before the disbursement of federal aid for one student. Cause - Lack of communication and oversight when verification information is completed. Effect - The information included into the verification worksheet was not accurate. The federal funds were disbursed before the proper completion of all the student verification. Questioned Costs - None. Context - Out of a population of 42 students selected for verification, a sample of seven students was selected for testing. Out of these seven students selected for testing, there was one instance in which the information included on the verification of the student's award was misstated between the number of household members enrolled in post secondary. Out of these seven students selected for testing, there was one instance in which the federal funds were disbursed before the completion of the student verification. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding - None Recommendation - The College should review and update its processes and controls to ensure student records for federal awards are obtained to properly support the verification worksheet. Additionally, the College should implement an automated control to ensure that federal aid not be disbursed until verification procedures are completed. Views of Responsible Officials and Planned Corrective Actions - The College has procedures in place that are supposed to prevent the awarding of students in verification. The Student Information System (Empower) has a feature for tracking students in verification. That tracking system did not prevent the awarding of Title IV aid. Therefore, the college will implement a back up tracking system to help track students in verification.
Finding 2024-003
Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2024 Criteria or Specific Requirement - Verification. According to 34 CFR 668.51 through 668.61, the institution shall require each applicant whose application is selected by the Department of Education to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition - The College did not ensure accurate information on the student's aid files against the information included in the V1 Verification Worksheet. Additionally, the College did not verify the completion of the student verification before the disbursement of federal aid for one student. Cause - Lack of communication and oversight when verification information is completed. Effect - The information included into the verification worksheet was not accurate. The federal funds were disbursed before the proper completion of all the student verification. Questioned Costs - None. Context - Out of a population of 42 students selected for verification, a sample of seven students was selected for testing. Out of these seven students selected for testing, there was one instance in which the information included on the verification of the student's award was misstated between the number of household members enrolled in post secondary. Out of these seven students selected for testing, there was one instance in which the federal funds were disbursed before the completion of the student verification. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding - None Recommendation - The College should review and update its processes and controls to ensure student records for federal awards are obtained to properly support the verification worksheet. Additionally, the College should implement an automated control to ensure that federal aid not be disbursed until verification procedures are completed. Views of Responsible Officials and Planned Corrective Actions - The College has procedures in place that are supposed to prevent the awarding of students in verification. The Student Information System (Empower) has a feature for tracking students in verification. That tracking system did not prevent the awarding of Title IV aid. Therefore, the college will implement a back up tracking system to help track students in verification.
Finding 2024-003
Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2024 Criteria or Specific Requirement - Verification. According to 34 CFR 668.51 through 668.61, the institution shall require each applicant whose application is selected by the Department of Education to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition - The College did not ensure accurate information on the student's aid files against the information included in the V1 Verification Worksheet. Additionally, the College did not verify the completion of the student verification before the disbursement of federal aid for one student. Cause - Lack of communication and oversight when verification information is completed. Effect - The information included into the verification worksheet was not accurate. The federal funds were disbursed before the proper completion of all the student verification. Questioned Costs - None. Context - Out of a population of 42 students selected for verification, a sample of seven students was selected for testing. Out of these seven students selected for testing, there was one instance in which the information included on the verification of the student's award was misstated between the number of household members enrolled in post secondary. Out of these seven students selected for testing, there was one instance in which the federal funds were disbursed before the completion of the student verification. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding - None Recommendation - The College should review and update its processes and controls to ensure student records for federal awards are obtained to properly support the verification worksheet. Additionally, the College should implement an automated control to ensure that federal aid not be disbursed until verification procedures are completed. Views of Responsible Officials and Planned Corrective Actions - The College has procedures in place that are supposed to prevent the awarding of students in verification. The Student Information System (Empower) has a feature for tracking students in verification. That tracking system did not prevent the awarding of Title IV aid. Therefore, the college will implement a back up tracking system to help track students in verification.
Finding 2024-003
Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2024 Criteria or Specific Requirement - Verification. According to 34 CFR 668.51 through 668.61, the institution shall require each applicant whose application is selected by the Department of Education to verify the information required for the Verification Tracking Group to which the applicant is assigned. Condition - The College did not ensure accurate information on the student's aid files against the information included in the V1 Verification Worksheet. Additionally, the College did not verify the completion of the student verification before the disbursement of federal aid for one student. Cause - Lack of communication and oversight when verification information is completed. Effect - The information included into the verification worksheet was not accurate. The federal funds were disbursed before the proper completion of all the student verification. Questioned Costs - None. Context - Out of a population of 42 students selected for verification, a sample of seven students was selected for testing. Out of these seven students selected for testing, there was one instance in which the information included on the verification of the student's award was misstated between the number of household members enrolled in post secondary. Out of these seven students selected for testing, there was one instance in which the federal funds were disbursed before the completion of the student verification. The sample was not, and was not intended to be, a statistically valid sample. Identification as a Repeat Finding - None Recommendation - The College should review and update its processes and controls to ensure student records for federal awards are obtained to properly support the verification worksheet. Additionally, the College should implement an automated control to ensure that federal aid not be disbursed until verification procedures are completed. Views of Responsible Officials and Planned Corrective Actions - The College has procedures in place that are supposed to prevent the awarding of students in verification. The Student Information System (Empower) has a feature for tracking students in verification. That tracking system did not prevent the awarding of Title IV aid. Therefore, the college will implement a back up tracking system to help track students in verification.