FAC Explorer

Audit 377174

FY End
2025-06-30
Total Expended
$9.24M
Findings
2
Programs
7
Organization: McPherson College (KS)
Year: 2025 Accepted: 2025-12-22
Auditor: INTEGRA ACCOUNTING SOLUTIONS LLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1166205 2025-001 Material Weakness Yes N
1166206 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $6.09M Yes 0
84.063 FEDERAL PELL GRANT PROGRAM $2.21M Yes 1
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $593,507 Yes 0
84.038 FEDERAL PERKINS LOANS $173,756 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $113,095 Yes 1
84.033 FEDERAL WORK-STUDY PROGRAM $57,086 Yes 0
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,316 Yes 0

Contacts

Name Title Type
PMNRJHMBZZX1 Carol Summervill Auditee
6202420458 Jesse Glazier Auditor
No contacts on file

Notes to SEFA

The Schedule of Expenditures of Federal Awards (the Schedule) includes the federal grant activity of McPherson College (the College) under programs of the federal government for the year ended June 30, 2025. The information in the 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 College, it is not intended to and does not present the financial position, changes in net assets, functional expenses or cash flows of the College.
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. The College has not elected to use the 15-percent de minimis indirect cost rate as allowed under the Uniform Guidance.
The Federal Perkins Loan Program is administered directly by the College and the balances and transactions relating to this program are included in the College's basic financial statements. Loans receivable from students under the Federal Perkins Loan Program at the beginning of the year totaled $173,756. No additional loans are permitted under the Federal Perkins Loan Program and none were made for the year ended June 30, 2025. The balance of loans receivable from students under the Federal Perkins Loan Program at June 30, 2025 totaled $31,591.

Finding Details

Finding 2025-001
2025-001 Disbursements to or on Behalf of Students – Credit Balances Type of Finding – Significant Deficiency and Noncompliance Student Financial Assistance Cluster: Federal Pell Grants – AL 84.063 and Federal Supplemental Educational Opportunity Grants – AL 84.007 Criteria: In accordance with 34 CFR 668.164, when Title IV funds are credited to a student’s account and exceed the amount of tuition, fees, food, housing, and other authorized charges, a credit balance is created. The institution must pay the resulting credit balance directly to the student or parent borrower within 14 days after (1) the first day of class of a payment period if the credit balance occurred on or before that day, or (2) the balance occurred if that was after the first day of class. Internal controls over compliance with direct and material compliance requirements should be sufficient to prevent or detect and correct noncompliance in a timely manner. Condition: One student selected for testing who received Pell and FSEOG funds with a credit balance did not receive a refund of Title IV aid within the 14-day requirement in accordance with 34 CFR 668.164. Questioned Costs: None identified. Context: Out of a sample of five students, one of the five students had a credit balance that was returned after the 14-day requirement. Effect: The College was not compliant with Federal requirements of the Student Financial Assistance Cluster. Cause: The internal controls over refunds for credit balances were not effective in maintaining compliance with the related compliance. Identification as a Repeat Finding: This is a repeat finding of finding 2024-002 that was reported for the year ending June 30, 2024. Recommendation: We recommend the College review the process and related controls for refunds of student credit balances to ensure credit balances requiring refunds within the 14-day requirements are appropriately identified and resolved. Views of Responsible Officials: McPherson College agrees with the finding and the recommendations. The College is reviewing the process and will refine the process as necessary.