Audit 345905

FY End

2024-06-30

Total Expended

$11.97M

Findings

2

Programs

5

Organization: Midway University, Inc. (KY)

Year: 2024 Accepted: 2025-03-13

Auditor: Dean Dorton Allen Ford PLLC

Organization Exclusion Status:

Checking exclusion status...

ID	Ref	Severity	Repeat	Requirement
526815	2024-001	-	-	N
1103257	2024-001	-	-	N

ALN	Program	Spent	Major	Findings
84.268	Federal Direct Student Loans	$8.56M	Yes	1
84.063	Federal Pell Grant Program	$3.16M	Yes	0
84.007	Federal Supplemental Educational Opportunity Grants	$126,522	Yes	0
84.033	Federal Work-Study Program	$119,358	Yes	0
84.379	Teacher Education Assistance for College and Higher Education Grants (teach Grants)	$7,073	Yes	0

Contacts

Name	Title	Type
K7DNR8U1TL73	Leah Rice	Auditee
8598465308	Megan Crane	Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs 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 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 University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the University. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program as of June 30, 2024. The current expenditures under the Federal Direct Loan Program of $8,562,251 are included in the accompanying Schedule of Expenditures of Federal Awards.

Title: 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 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 University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Midway University, Inc. (the University) 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 (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.

Finding Details

Finding 2024-001

Federal Program: U.S. Department of Education Federal Direct Loan Program, CFDA 84.268 Criteria: The University must comply with 34 CFR Section 685.309(b). Condition: During our testing of 40 graduates, we noted four students for which the National Student Loan Data System (NSLDS) was not notified timely of the correct student status change. The University submitted graduates through rosters sent to the National Student Clearinghouse (the Clearinghouse), but ultimately were not reported timely to the NSLDS. Cause: The University did not have controls in place to ensure students' classification was being reported to the NSLDS timely after submitting rosters to the Clearinghouse. Effect: The provisions of 34 CFR Section 685.309(b) were not followed and thus a total of four students had untimely status changes reported to the NSLDS. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University implement controls to ensure students are timely reported to the NSLDS after roster files are submitted to the Clearinghouse. Views of responsible officials and planned corrective actions: Management acknowledges this finding and will change the procedure to verify enrollment status changes to ensure that there are no issues of files not transferring from the National Student Clearinghouse (NSC) to the National Student Loan Data System (NSLDS). Currently, the Financial Aid Director confirms status changes in NSLDS at day 50, and as part of the process change a second status check will occur with a separate Financial Aid staff member before the 60 day timeframe has passed to ensure that no students were missed in the file transfer or that status changes occurred after the initial check.

Finding 2024-001

Federal Program: U.S. Department of Education Federal Direct Loan Program, CFDA 84.268 Criteria: The University must comply with 34 CFR Section 685.309(b). Condition: During our testing of 40 graduates, we noted four students for which the National Student Loan Data System (NSLDS) was not notified timely of the correct student status change. The University submitted graduates through rosters sent to the National Student Clearinghouse (the Clearinghouse), but ultimately were not reported timely to the NSLDS. Cause: The University did not have controls in place to ensure students' classification was being reported to the NSLDS timely after submitting rosters to the Clearinghouse. Effect: The provisions of 34 CFR Section 685.309(b) were not followed and thus a total of four students had untimely status changes reported to the NSLDS. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University implement controls to ensure students are timely reported to the NSLDS after roster files are submitted to the Clearinghouse. Views of responsible officials and planned corrective actions: Management acknowledges this finding and will change the procedure to verify enrollment status changes to ensure that there are no issues of files not transferring from the National Student Clearinghouse (NSC) to the National Student Loan Data System (NSLDS). Currently, the Financial Aid Director confirms status changes in NSLDS at day 50, and as part of the process change a second status check will occur with a separate Financial Aid staff member before the 60 day timeframe has passed to ensure that no students were missed in the file transfer or that status changes occurred after the initial check.