Audit 389649

FY End
2025-05-31
Total Expended
$8.73M
Findings
2
Programs
5
Year: 2025 Accepted: 2026-02-27
Auditor: SIKICH CPA LLC

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1175736 2025-001 Material Weakness Yes N
1175737 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $5.82M Yes 1
84.063 FEDERAL PELL GRANT PROGRAM $2.48M Yes 1
84.038 FEDERAL PERKINS LOAN PROGRAM $235,341 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $142,930 Yes 0
84.033 FEDERAL WORK-STUDY PROGRAM $55,628 Yes 0

Contacts

Name Title Type
WTC3ECE4A764 Sarah Taylor Auditee
8476282500 Ray Krouse Auditor
No contacts on file

Notes to SEFA

For the year ended May 31, 2025, Judson University acted as a pass-through agency for Federal Direct Loans (subsidized, unsubsidized and PLUS) to students and parents in the amount of $5,819,480.
The University administers the Perkins Loan Program. For purposes of the schedule, the amount reported includes the outstanding loan balance at the beginning of the fiscal year. Due to regulation changes, no further loans can be made from the program, and no administrative cost allowance can be taken from the loan fund. Institutions have the option of continuing to collect on outstanding loan balances or can voluntarily liquidate the program. The University has no current plans to begin the Perkins liquidation process, however, is required to periodically return excess cash on hand from the program to the Department of Education.
The University is operating under the Provisional Certification Alternative for failure to meet the Department of Education’s standards of financial responsibility. The University must comply with all the requirements specified for the Provisional Certification Alternative including the Zone Alternative. As part of the audit procedures, the University’s compliance with the Zone Alternative including their administration of the heightened cash monitoring payment method, disbursing aid and paying out credit balances before requesting reimbursement and notification requirements was tested. No non-compliance with the requirements was noted.
Judson University did not receive any federal insurance or federal noncash assistance and did not provide any amounts to sub-recipients.

Finding Details

FINDING 2025-001: Incorrect Refund Calculations FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM Student Financial Aid Cluster For the Year Ended May 31, 2025 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested twelve drop students and found six incorrect refund calculations. We consider this finding to be a significant deficiency. Cause: The condition was caused by not including the proper break days from the students' Return to Title IV calculations. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $692 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution credit the appropriate students' accounts $692 and increase controls over the Return to Title IV refund calculation. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.