Audit 394750

FY End
2025-06-30
Total Expended
$15.55M
Findings
1
Programs
9
Organization: Mount Marty University (SD)
Year: 2025 Accepted: 2026-03-26

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1187059 2025-001 Material Weakness Yes E

Contacts

Name Title Type
MK4EGTTKK988 Lori Read Auditee
6056681566 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 Mount Marty University (the University) under programs of the federal government for the year ended June 30, 2025. The information 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 University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
The federal student loan programs included in the Schedule are administered directly by the University and balances and transactions relating to these programs are included in the University’s basic financial statements. Loans made during the year are included in the federal expenditures presented in the Schedule. The balance of loans outstanding at June 30, 2025 consists of: Federal Financial Assistance Listing Number / Program Name / Outstanding Balance at June 30, 2025: 84.038 / Federal Perkins Loans / $ 91,190 93.364 / Nursing Student Loans / 658,165 The Federal government allowed the Perkins Loan Program to expire in September 2017. The University is continuing to service existing loans and is remitting the federal portion of the loans to the Department of Education as directed. Beginning in 2024, the University is required to assign Federal Perkins Loans that have been in default for more than two years to the U.S. Government for collections and assigned $29,000 of such loans during the year ended June 30, 2025.
The University 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).

Finding Details

Federal Agency: Department of Education Federal Program Title: Federal Pell Grant Program (PELL) ALN Numbers: 84.063 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Per 34 CFR 690.62, institutions must ensure that the amount of Pell Grant funds disbursed does not exceed the student’s calculated eligibility based on the Student Aid Index (SAI), cost of attendance, and enrollment status. Condition: One instance was identified in which the University calculated Pell eligibility of $7,395 for the award year when only $6,471 should have been disbursed. Questioned Costs: $924 in PELL assistance was overawarded to the student. Context: CLA tested a random sample of 40 students from a population of 669 student financial aid recipients. Cause: The University’s system cannot identify status changes within/after the add/drop period (i.e., full-time to less-than-half-time) Effect: One student was disbursed more Pell assistance than they were eligible to receive. Repeat Finding from Prior Years: Yes – 2024‐002. Recommendation: We recommend that management return the overawarded amount of $924 to the U.S. Department of Education and strengthen internal controls over Pell Grant calculations and disbursements to prevent future overawards. Views of Responsible Officials: Management agrees with the finding.