FAC Explorer

Audit 389008

FY End
2025-05-31
Total Expended
$9.63M
Findings
10
Programs
5
Organization: Minneapolis College of Art and Design (MN)
Year: 2025 Accepted: 2026-02-25
Auditor: CLIFTONLARSONALLEN LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
1175264 2025-001 Material Weakness Yes N
1175265 2025-001 Material Weakness Yes N
1175266 2025-001 Material Weakness Yes N
1175267 2025-001 Material Weakness Yes N
1175268 2025-001 Material Weakness Yes N
1175269 2025-002 Material Weakness Yes N
1175270 2025-002 Material Weakness Yes N
1175271 2025-002 Material Weakness Yes N
1175272 2025-002 Material Weakness Yes N
1175273 2025-002 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $7.11M Yes 2
84.063 FEDERAL PELL GRANT PROGRAM $1.97M Yes 2
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $406,201 Yes 2
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $78,027 Yes 2
84.033 FEDERAL WORK-STUDY PROGRAM $64,377 Yes 2

Contacts

Name Title Type
LNB2KJL25WU1 Mary Alma Noonan Auditee
6128743183 Deirdre Hodgson Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Minneapolis College of Art and Design under programs of the federal government for the year ended May 31, 2025. The information in this Schedule is presented in accordance with the requirements of 2 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 Minneapolis College of Art and Design, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Minneapolis College of Art and Design.
The federal student loan programs listed subsequently are administered directly by Minneapolis College of Art and Design, and balances and transactions relating to these programs are included in Minneapolis College of Art and Design’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at May 31, 2025 consists of: Grant Desciption / Assitance Listing Number / Amount Outstanding: Federal Perkins Loan Program / 84.038 / $ 407,845
The College 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 University 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).

Finding Details

Finding 2025-001
Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN: Various Award Period: June 1, 2024 through May 31, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Gramm-Leach-Bliley Act (GLBA) requires financial institutions to explain their information-sharing practices to their customers and safeguard sensitive data (16 CFR 314). Institutions are required to develop, implement, and maintain a comprehensive information security program that is written in one or more readily accessible parts. The regulations require the written information security program to include nine elements for institutions with 5,000 or more customers (16 CFR 314.3(a)). The written information security program (WISP) for institutions with fewer than 5,000 customers must address seven elements (16 CFR 314.3(a) and 16 CFR 314.6). The elements that an institution must address in its written information security program are at 16 CFR 314.4. At a minimum, the institution’s written information security program must address the implementation of the minimum safeguards identified in 16 CFR 314.4(c)(1) through (8), including assessing apps developed by the institution. In addition, the written security program provides for the institution to regularly test or otherwise monitor the effectiveness of the safeguards it has implemented (16 CFR 314.4(d)). Condition: During our testing, we noted several steps missing from the Written Information Security Program (WISP). We also noted that the College’s WISP was in draft form and was not formally approved. Questioned Costs: None over $10,000. Context: These new GLBA requirements were applicable beginning on June 9, 2023 and there were several elements missing from their WISP. Cause: There was not a formal process in place to review against the GLBA requirements to ensure compliance. Effect: Student personal information could be vulnerable. Repeat Finding: Yes – 2024-002 Recommendation: We recommend that the College review the GLBA requirements and ensure their WISP includes all required elements. Views of Responsible Officials: There is no disagreement with the audit finding.
Finding 2025-002
Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN: 84.268 Award Period: June 1, 2024 through May 31, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized and unsubsidized loan amounts for students based on their dependency status, year of education, and other factors. Condition: During our testing of 40 students, we noted one instance where the Subsidized Stafford loan awarded to the student was over the maximum amount they were eligible for. Questioned Costs: None over $10,000. Context: The College did not have procedures in place to detect this over award. Cause: The College did not appropriately calculate the student’s Subsidize Stafford Loan award. Effect: The student was awarded incorrectly as they were not eligible for the specific awarded amount. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures and a policy around how Subsidized Stafford loans are calculated, awarded, and packaged. Views of Responsible Officials: There is no disagreement with the audit finding.