FAC Explorer

Audit 386256

FY End
2025-06-30
Total Expended
$11.89M
Findings
7
Programs
6
Organization: Northwestern College (IA)
Year: 2025 Accepted: 2026-02-09
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1172860 2025-001 Material Weakness Yes N
1172861 2025-001 Material Weakness Yes N
1172862 2025-001 Material Weakness Yes N
1172863 2025-001 Material Weakness Yes N
1172864 2025-001 Material Weakness Yes N
1172865 2025-001 Material Weakness Yes N
1172866 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $9.18M Yes 1
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $242,451 Yes 1
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $182,186 Yes 1
84.033 FEDERAL WORK-STUDY PROGRAM $158,455 Yes 1
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,772 Yes 1
84.063 FEDERAL PELL GRANT PROGRAM $1,910 Yes 1

Contacts

Name Title Type
YMK7VK3FKX47 Kent Wiersema Auditee
7127077121 Brenda Scherer Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Northwestern College (the College) under programs of the federal government for the year ended June 30, 2025. 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.
The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23: • Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) • Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) • Placement rates for short-term programs under https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.8 34 CFR 668.8(e)(2)
The Federal loan program listed subsequently is administered directly by the College, and balances and transactions relating to this program are included in the college’s financial statements. The balance of loans outstanding at June 30, 2025 and 2024, consists of: Federal Assistance Listing Number: 84.038; Program Name: Federal Perkins Loan Program; Outstanding Balance at June 30, 2025 - $242,452; Outstanding Balance at June 30, 2024 - $376,505

Finding Details

Finding 2025-001
Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: July 1, 2024, through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309(b), states schools must have some arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through an enrollment roster file. The school is required to report changes in the student’s enrollment status, the effective date of the status, and an anticipated completion date as well as program enrollment effective date. Changes to a students' status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing, we noted one out of the 40 students change in status was not reported to NSLDS within 60 days. Questioned costs: None Context: During our testing, it was noted the College did not properly follow the process to ensure changes in status reported to NSLDS timely. Cause: The College’s processes and controls did not ensure that student status changes were properly and timely reported to NSLDS. Effect: The NSLDS system is not updated with the student information which can cause overawarding should the student transfer to another institution and the students may not properly enter the repayment period. Repeat finding: Yes – 2024-001 Recommendation: We recommend the College reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Views of responsible officials: There is no disagreement with the audit finding.