Audit 348737

FY End
2024-06-30
Total Expended
$178.87M
Findings
2
Programs
115
Organization: William Marsh Rice University (TX)
Year: 2024 Accepted: 2025-03-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
537519 2024-001 - - N
1113961 2024-001 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $23.65M Yes 1
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $22.62M Yes 0
81.087 Renewable Energy Research and Development $1.72M Yes 0
12.RD Dod - Contract N560119ca020 $1.21M Yes 0
84.038 Federal Perkins Grant Program $1.17M Yes 0
12.RD Defence Advanced Research Projects Agency $646,544 Yes 0
11.020 Cluster Grants $616,192 - 0
84.116 Fund for the Improvement of Postsecondary Education $607,181 - 0
81.RD Doe-Aco5-000r2275 $520,057 Yes 0
84.305 Education Research, Development and Dissemination $499,742 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $489,000 Yes 0
11.802 Minority Business Resource Development $484,870 - 0
81.RD Doe-Ac52-07na27344 $442,051 Yes 0
81.086 Conservation Research and Development $424,268 Yes 0
93.839 Blood Diseases and Resources Research $388,633 Yes 0
93.838 Cardiovascular Diseases Research $371,079 Yes 0
81.089 Fossil Energy Research and Development $352,707 Yes 0
93.397 Cancer Centers Support Grants $321,247 Yes 0
93.575 Child Care and Development Block Grant $274,431 - 0
81.RD Doe-Ac02-07ch11359 $259,891 Yes 0
93.143 Niehs Superfund Hazardous Substances_basic Research and Education $257,770 Yes 0
47.084 Nsf Technology, Innovation, and Partnerships $246,517 Yes 0
93.879 Medical Library Assistance $241,807 Yes 0
20.701 University Transportation Centers Program $240,978 Yes 0
11.609 Measurement and Engineering Research and Standards $239,562 Yes 0
93.172 Human Genome Research $236,150 Yes 0
93.350 National Center for Advancing Translational Sciences $227,227 Yes 0
15.RD Doi - Contract Wriva $222,561 Yes 0
93.242 Mental Health Research Grants $219,453 Yes 0
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $214,681 Yes 0
47.RD Nsf Technology, Innovation, and Partnerships $200,468 Yes 0
47.049 Mathematical and Physical Sciences $187,750 Yes 0
81.135 Advanced Research Projects Agency - Energy $183,576 Yes 0
12.300 Basic and Applied Scientific Research $178,999 Yes 0
12.800 Air Force Defense Research Sciences Program $171,828 Yes 0
10.219 Biotechnology Risk Assessment Research $166,078 Yes 0
93.395 Cancer Treatment Research $164,272 Yes 0
12.431 Basic Scientific Research $153,613 Yes 0
93.173 Research Related to Deafness and Communication Disorders $146,837 Yes 0
47.041 Engineering $141,206 Yes 0
93.837 Cardiovascular Diseases Research $134,134 Yes 0
93.630 Developmental Disabilities Basic Support and Advocacy Grants $124,886 Yes 0
84.033 Federal Work-Study Program $119,150 Yes 0
47.070 Computer and Information Science and Engineering $115,633 Yes 0
45.161 Promotion of the Humanities Research $111,496 Yes 0
47.074 Biological Sciences $98,523 Yes 0
84.324 Research in Special Education $97,474 Yes 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $91,791 Yes 0
12.420 Military Medical Research and Development $87,240 Yes 0
43.002 Aeronautics $84,719 Yes 0
12.910 Research and Technology Development $83,047 Yes 0
81.RD Doe-Ac02-06ch11357 $82,833 Yes 0
93.926 Healthy Start Initiative $81,730 Yes 0
93.103 Food and Drug Administration Research $74,428 Yes 0
43.RD NASA - Contract Nas5-26555 $73,235 Yes 0
98.001 Usaid Foreign Assistance for Programs Overseas $73,131 - 0
43.001 Science $70,196 Yes 0
12.630 Basic, Applied, and Advanced Research in Science and Engineering $69,872 Yes 0
10.028 Wildlife Services $68,743 Yes 0
81.049 Office of Science Financial Assistance Program $66,490 Yes 0
81.RD Doe-Sc0012704 $63,428 Yes 0
10.RD Usda - Contract 23-Jv-111111129-042 $61,743 Yes 0
45.169 Promotion of the Humanities Office of Digital Humanities $61,564 Yes 0
43.012 Space Technology $60,931 Yes 0
81.RD Doe-Ac05-76rl01830 $60,000 Yes 0
93.394 Cancer Detection and Diagnosis Research $59,740 Yes 0
47.078 Polar Programs $57,144 Yes 0
93.307 Minority Health and Health Disparities Research $55,132 Yes 0
11.RD Commerce = Ipa 292030 $51,958 Yes 0
43.RD NASA - Contract Nas5-02099 $49,861 Yes 0
93.279 Drug Abuse and Addiction Research Programs $45,915 Yes 0
93.398 Cancer Research Manpower $44,060 Yes 0
45.164 Promotion of the Humanities Public Programs $43,244 Yes 0
93.121 Oral Diseases and Disorders Research $42,290 Yes 0
93.867 Vision Research $41,020 Yes 0
45.024 Promotion of the Arts Grants to Organizations and Individuals $40,560 Yes 0
81.RD Doe-Na0003525 $37,613 Yes 0
93.865 Child Health and Human Development Extramural Research $31,331 Yes 0
81.RD Doe-Ac02-76sf00515 $30,821 Yes 0
97.061 Centers for Homeland Security $29,877 Yes 0
93.859 Biomedical Research and Research Training $27,067 Yes 0
66.516 P3 Award: National Student Design Competition for Sustainability $25,000 Yes 0
93.384 Advanced Research Projects Agency for Health (arpa-H) $24,478 Yes 0
11.035 Broadband Equity, Access, and Deployment Program $23,812 Yes 0
12.RD Air Force Office of Scientific Research $23,549 Yes 0
81.RD Doe-Ac02-05ch11231 $23,324 Yes 0
93.855 Allergy and Infectious Diseases Research $22,991 Yes 0
81.RD 89233218cna000001 $22,616 Yes 0
93.226 Research on Healthcare Costs, Quality and Outcomes $19,586 Yes 0
93.310 Minority Health and Health Disparities Research $18,030 Yes 0
10.310 Agriculture and Food Research Initiative (afri) $14,999 Yes 0
11.417 Sea Grant Support $14,940 Yes 0
47.076 Stem Education (formerly Education and Human Resources) $13,530 Yes 0
45.160 Promotion of the Humanities Fellowships and Stipends $13,268 Yes 0
47.050 Geosciences $12,346 Yes 0
47.075 Social, Behavioral, and Economic Sciences $12,008 Yes 0
93.RD Health and Human Services $11,563 Yes 0
93.393 Cancer Cause and Prevention Research $10,468 Yes 0
43.RD NASA - Contract Nas5-03127 $9,168 Yes 0
15.634 State Wildlife Grants $9,162 Yes 0
93.866 Aging Research $8,662 Yes 0
12.RD Air Force Research Laboratory $6,392 Yes 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $6,233 Yes 0
11.482 Coral Reef Conservation Program $5,407 Yes 0
20.215 Highway Training and Education $5,000 Yes 0
10.912 Environmental Quality Incentives Program $4,969 Yes 0
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $4,588 Yes 0
84.063 Federal Pell Grant Program $3,615 Yes 0
10.001 Agricultural Research Basic and Applied Research $3,469 Yes 0
81.112 Stewardship Science Grant Program $3,419 Yes 0
43.009 Mission Support $1,599 Yes 0
47.083 Integrative Activities $1,565 Yes 0
15.506 Water Desalination Research and Development $1,557 Yes 0
47.079 Office of International Science and Engineering $965 Yes 0
93.396 Cancer Biology Research $1 Yes 0

Contacts

Name Title Type
K51LECU1G8N3 Megan C. Buie Auditee
8062818420 Stephen G. Parker Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: William Marsh Rice University (the “University”) is a Texas not-for-profit corporation that operates a private research university in Houston, Texas. The consolidated financial statements of the University have been prepared on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America and with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, which requires the University to classify its net assets into two categories according to donor-imposed restrictions: net assets without donor-imposed restrictions and net assets with donor-imposed restrictions. All material transactions between the University and its subsidiaries have been eliminated. The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the University’s financial statements for the year ended June 30, 2023, from which the summarized information was derived. The consolidated financial statements of the University include the accounts of all academic and administrative departments of the University and affiliated organizations that are controlled by the University. De Minimis Rate Used: N Rate Explanation: The University has an approved predetermined indirect cost rate agreement. The purpose of the Schedule of Expenditures of Federal Awards (the “Schedule”) is to present a summary of the activities of the University for the year ended June 30, 2024, which have been financed by the U.S. Government. The Schedule is presented on the accrual basis of accounting and in accordance with the requirements of Title 2 U.S. Code of Regulations Part 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards (Uniform Guidance). For the purposes of the Schedule, federal awards have been classified into two types: • Direct federal awards consisting of federal assistance and federal student financial aid, and • Pass-through funds received from nonfederal organizations made under federally sponsored programs conducted by those organizations. Because the Schedule presents only a selected portion of the activities of the University, it is not intended to and does not present either the financial position or the activities of the University. Negative numbers in the Schedule represent adjustments to amounts previously reported in the normal course of business. Full Assistance Listing Numbers (ALN) and pass-through numbers are included in the Schedule when available. Federal programs are presented by federal department and, where applicable, the funding agency within the department. Federal pass-through programs include the entity through which the University received the pass-through federal awards funding. Total expenditures, expenditures which were passed to subrecipients and lost revenues are included.
Title: Indirect Costs Accounting Policies: William Marsh Rice University (the “University”) is a Texas not-for-profit corporation that operates a private research university in Houston, Texas. The consolidated financial statements of the University have been prepared on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America and with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, which requires the University to classify its net assets into two categories according to donor-imposed restrictions: net assets without donor-imposed restrictions and net assets with donor-imposed restrictions. All material transactions between the University and its subsidiaries have been eliminated. The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the University’s financial statements for the year ended June 30, 2023, from which the summarized information was derived. The consolidated financial statements of the University include the accounts of all academic and administrative departments of the University and affiliated organizations that are controlled by the University. De Minimis Rate Used: N Rate Explanation: The University has an approved predetermined indirect cost rate agreement. For the year ended June 30, 2024, the University has an approved predetermined indirect cost rate agreement. As such, the 10% de minimis c cost rate, as described in Section 200.414 of the Uniform Guidance, is not applicable.
Title: Federal Perkins Loan Program Accounting Policies: William Marsh Rice University (the “University”) is a Texas not-for-profit corporation that operates a private research university in Houston, Texas. The consolidated financial statements of the University have been prepared on the accrual basis of accounting, in accordance with accounting principles generally accepted in the United States of America and with the provisions of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (ASC) 958, Not-for-Profit Entities, which requires the University to classify its net assets into two categories according to donor-imposed restrictions: net assets without donor-imposed restrictions and net assets with donor-imposed restrictions. All material transactions between the University and its subsidiaries have been eliminated. The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the University’s financial statements for the year ended June 30, 2023, from which the summarized information was derived. The consolidated financial statements of the University include the accounts of all academic and administrative departments of the University and affiliated organizations that are controlled by the University. De Minimis Rate Used: N Rate Explanation: The University has an approved predetermined indirect cost rate agreement. The Federal Perkins Loan Program, ALN 84.038, is administered by a third-party service provider, with balances and transactions relating to this program included in the University’s financial statements. For the year ended June 30, 2024, federal expenditures presented in the Schedule include loans outstanding at the beginning of the year. Due to the cessation of the Perkins Loan Program, no new loans were made during the year. The balance of loans outstanding at June 30, 2024 was $1,166,842.

Finding Details

Finding 2024-001 – Loan Disbursement Notification Cluster: Student Financial Assistance Cluster Awarding Agency: Department of Education Award Name: Federal Direct Student Loans Award Year: July 1, 2023 – June 30, 2024 Assistance Listing Number: 84.268 Pass-through Entity: Not applicable Criteria Under 34 CFR 688.165 (a), except in the case of a post-withdrawal disbursement made in accordance with 34 CFR 668.22(a)(5), if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan, or TEACH Grant program funds, the institution must notify the student or parent of (i) the anticipated date and amount of the disbursement; (ii) the student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and, (iii) the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement. The institution must provide the notice no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account, if the institution obtains affirmative confirmation from the student. Condition Through testing of 25 individual federal student financial aid award disbursements, we selected 20 direct loan disbursements to students for testing. We noted that for all 20 selections, the students did not receive a notification containing: i) anticipated date and amount of the Direct Loan disbursement, ii) their right to cancel and, iii) the procedures and time by which the Direct Loan could be canceled. Cause The University relied on an automated process whereby the loan disbursement notice was to be sent one day after a loan disbursement posts to a student’s account. As a result of our audit procedures, the University identified the system rules that initiate the notice were not reinstalled after script updates were made, resulting in the notice not being sent to all Direct Loan recipients during the fiscal year. Effect If a student is not provided with timely notifications specific to Direct Loans, they may not be able to decline the funding, if they so choose, in a timely manner. Questioned Costs None. Recommendation We recommend management annually review the associated system rules to confirm notices will be sent as required. Management’s Views and Corrective Action Plan Management’s view and corrective action plan are included at the end of this report.
Finding 2024-001 – Loan Disbursement Notification Cluster: Student Financial Assistance Cluster Awarding Agency: Department of Education Award Name: Federal Direct Student Loans Award Year: July 1, 2023 – June 30, 2024 Assistance Listing Number: 84.268 Pass-through Entity: Not applicable Criteria Under 34 CFR 688.165 (a), except in the case of a post-withdrawal disbursement made in accordance with 34 CFR 668.22(a)(5), if an institution credits a student ledger account with Direct Loan, Federal Perkins Loan, or TEACH Grant program funds, the institution must notify the student or parent of (i) the anticipated date and amount of the disbursement; (ii) the student's or parent's right to cancel all or a portion of that loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement and have the loan proceeds or TEACH Grant proceeds returned to the Secretary; and, (iii) the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, loan disbursement, TEACH Grant, or TEACH Grant disbursement. The institution must provide the notice no earlier than 30 days before, and no later than 30 days after, crediting the student’s ledger account, if the institution obtains affirmative confirmation from the student. Condition Through testing of 25 individual federal student financial aid award disbursements, we selected 20 direct loan disbursements to students for testing. We noted that for all 20 selections, the students did not receive a notification containing: i) anticipated date and amount of the Direct Loan disbursement, ii) their right to cancel and, iii) the procedures and time by which the Direct Loan could be canceled. Cause The University relied on an automated process whereby the loan disbursement notice was to be sent one day after a loan disbursement posts to a student’s account. As a result of our audit procedures, the University identified the system rules that initiate the notice were not reinstalled after script updates were made, resulting in the notice not being sent to all Direct Loan recipients during the fiscal year. Effect If a student is not provided with timely notifications specific to Direct Loans, they may not be able to decline the funding, if they so choose, in a timely manner. Questioned Costs None. Recommendation We recommend management annually review the associated system rules to confirm notices will be sent as required. Management’s Views and Corrective Action Plan Management’s view and corrective action plan are included at the end of this report.