Information on Federal Program ‒ Federal Family Education Loans (Assistance Listing Number 84.032) Criteria – Compliance Requirement C – Cash Management – The University must return all excess cash received from the U.S. Department of Education in a timely manner, if funds are not credited to an enrolled student’s account within 3 business days following the receipt of funds. Condition – During the audit, we noted the following: The University has approximately $388,000 of excess cash held in a segregated federal funds cash account, which relates to awards from prior years. Cause – Prior management’s lack of oversight of student financial aid in prior years. The lack of proper oversight and insufficient internal controls resulted in excess cash received from third-party awarding agencies, which was not properly refunded, causing the University to have excess cash on hand. Effect – The University has excess cash on hand and was not in compliance with cash management requirements; however, the University has the funds properly held in an identifiable federal funds cash account, as they are currently investigating the best way to refund the excess cash. Questioned Costs – None. Context – We reviewed cash received and expended in a prior year, noting the University has additional funds on hand from prior awarding years. All current year funds were properly received and disbursed with no excess cash on hand from the current year. The University reconciled the remaining amounts and discovered the transactions the excess cash relates to. The University is working with the Government to send the funds back, however, at year end they have not been returned. Indication of a Repeat Finding – This is a repeat finding 2024-001 from prior year. Recommendation – We recommend the University enhance internal controls over compliance with cash management requirements, as well as work with current and prior awarding agencies to determine the appropriate course of action to return the excess cash on hand. Views of Responsible Officials – See corrective action plan.
Information on Federal Program ‒ Federal Work-Study Program (Assistance Listing Number 84.033) Criteria – Compliance Requirement N – Special Tests and Provisions – Institutions are required to verify all amounts paid are appropriately earned. Condition – During our testing of the Federal Work-Study program, we noted the following: For 2 students out of a population of 229 students who received Federal Work-Study, the University was unable to verify time punches, which resulted in overpayments of Federal Work-Study aid; however, the University was able to prove there were offsetting hours that were subsequently claimed as allowable hours, therefore, a return of funds is not needed. Cause – 2 students whose time entered and paid were not able to be verified. Effect – The students and the University were not in compliance with the Federal Work-Study program guidelines. Questioned Costs – $508 Context – As noted in the condition, 2 exceptions out of a population of 229 students were found, which resulted in the students and the University not being in compliance with the program rules. Indication of a Repeat Finding – This is a repeat finding 2024-002 from prior year. Recommendation – We recommend the University ensure its internal controls, policies and procedures are followed on a consistent basis regarding the Federal Work-Study Program. Views of Responsible Officials – See corrective action plan.
Information on Federal Program ‒ Grants to States for Medicaid (Assistance Listing Number 93.778) Criteria – Consistent with the requirements of 2 CFR 200.514, Subpart 3, L Reporting and consistent with the requirements of the subaward agreement, the University is required to submit compliance reporting to the grantor annually beginning in the year the funds were received. Condition – During our testing of this grant, we noted the following: The University did not submit the compliance reporting required under the subaward agreement. The grantor never provided the appropriate report templates so the University was unable to submit the necessary documentation. Cause – Management oversight and insufficient internal controls over grant compliance and lack of support from the grantor. Effect – The University was not in reporting compliance with subaward agreement, however, the funds were appropriately utilized within parameters of the grant agreement. Questioned Costs – None Context – The University never received the templates required for reporting and the grantor never requested the University submit the reporting. The University used the funds in compliance with the agreement but did not follow the full length of reporting requirements. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding post award grant compliance and reporting. Views of Responsible Officials – See corrective action plan.
Information on Federal Program ‒ SFA Cluster Criteria – Consistent with the requirements of 2 CFR Part 668, Subpart B, Part 16, the University is required to identify and resolve discrepancies in the information received from different sources with respect to each student’s financial aid. Condition – The University discovered and disclosed to us: 3 students from a total population of 3,115 students who received financial aid, the University did not address issues with the students FASFA before distributing funds totaling $160,789. The University refunded the unresolved differences to the Department of Education totaling $160,789 subsequent to the award disbursement. One of the 3 students was also improperly awarded aid in 2023-2024. The student was not eligible for aid, so the University has to return $31,571. The refund has not been processed and is still owed to the Department of Education at the time of report issuance. Cause – Management oversight and insufficient internal controls in the awarding process, resulting in 3 students being improperly awarded aid. Effect – The University was not in compliance with awarding procedures and the University refunded $160,789 to the Department of Education and still owes $31,571. Questioned Costs – $192,360 Context – The University’s system was not updated for ISIR C flags. The system and internal review did not identify the issues before aid was disbursed to student accounts. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding the awarding process. Views of Responsible Officials – See corrective action plan.
Information on Federal Program ‒ SFA Cluster Criteria – Consistent with the requirements of 2 CFR Part 200, Subpart F, Part 3, the auditor is required to test internal controls related to major programs. The specific procedures to test internal control on a caseby- case basis considering factors such as the non-federal entity’s internal controls, the compliance requirements, the audit objectives for compliance, the auditor’s assessment of control risk, and the audit requirement to test internal controls. Condition – During our Controls testing of University awarding and billing procedures, we noted the following: For 5 students out of 40 sampled, from a population of 3,115 students who received financial aid, the University incorrectly calculated the Cost of Attendance (COA). As a result of the incorrect COA, 1 student was overawarded for classes during the summer semester. The University refunded the Department of Education $400 due to the overaward. Cause – Management oversight and insufficient internal controls in the awarding procedures, resulting in 1 student being overawarded. Effect – The University was not in compliance with refund requirements as the University owes the Department of Education a refund for the overawarded amount. Questioned Costs – $400 Context – For 5 students out of 40 sampled, the University’s system overawarded based on an incorrect cost of attendance being used within the students awarding calculation. Indication of a Repeat Finding – This is a new finding in 2025. Recommendation – We recommend the University ensure its internal controls, policies, and procedures are followed on a consistent basis regarding the awarding of federal aid. Views of Responsible Officials – See corrective action plan.