FAC Explorer

Audit 493

FY End
2023-05-31
Total Expended
$873,873
Findings
14
Programs
5
Organization: Morrison Institute of Technology (IL)
Year: 2023 Accepted: 2023-10-11
Auditor: Winkel Parker & Foster CPA PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
249 2023-001 Significant Deficiency - N
250 2023-001 Significant Deficiency - N
251 2023-001 Significant Deficiency - N
252 2023-001 Significant Deficiency - N
253 2023-002 Significant Deficiency Yes L
254 2023-002 Significant Deficiency Yes L
255 2023-002 Significant Deficiency Yes L
576691 2023-001 Significant Deficiency - N
576692 2023-001 Significant Deficiency - N
576693 2023-001 Significant Deficiency - N
576694 2023-001 Significant Deficiency - N
576695 2023-002 Significant Deficiency Yes L
576696 2023-002 Significant Deficiency Yes L
576697 2023-002 Significant Deficiency Yes L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $649,553 Yes 1
84.063 Federal Pell Grant Program $112,716 Yes 1
84.007 Federal Supplemental Educational Opportunity Grants $22,245 Yes 1
84.033 Federal Work-Study Program $11,883 Yes 1
84.425 Education Stabilization Fund $11,668 - 1

Contacts

Name Title Type
SA64L4VH9YJ3 Chris Scott Auditee
8157727218 Kristyl McDaniel Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 - BASIS OF PRESENTATION Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of Morrison Institute of Technology under programs of the federal government for the year ended May 31, 2023. 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 Morrison Institute of Technology, it is not intended to and does not present the financial position, changes in financial position or cash flows of Morrison Institute of Technology.
Title: NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance.
Title: NOTE 3 - FEDERAL DIRECT STUDENT LOANS Accounting Policies: Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in OMB Circular A-87, Cost Principles for State, Local and Indian Tribal Governments, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. De Minimis Rate Used: N Rate Explanation: Morrison Institute of Technology has elected not to use the 10% de minimis indirect cost rate as allowed under the Uniform Guidance. See the Notes to the SEFA for chart/table

Finding Details

Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-001
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors. Condition - The Institute had the following changes that were required to be updated on their ECAR: • The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022. • A Board Member was no longer serving the institution as of May 2021. • A Board Member was added to the Board in October 2021. These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors. Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed. Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely. Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023. Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change. Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.
Finding 2023-002
Criteria - Quarterly public reporting for grants received under the Education Stabilization Fund are required to be posted to the Institute’s primary website no later than 10 days after the end of each calendar quarter. Condition - The Institute provided support to show that 3 of 4 quarterly reports selected for testing were posted to their website within 10 days after the end of the calendar quarter. The Institute stated that 1 of the 4 quarterly reports was posted timely; however, the Institute was unable to provide information to show the date of the posting to their website. At the time of the audit, all reports were posted on the Institute’s website. Effect - As a result of this condition, auditors were not able to determine if the required information was provided to the public timely and therefore, unable to determine if the Institute was in compliance with the grant requirements. Cause - Documentation supporting the date the quarterly report was posted to the Institute’s website was not maintained. Recommendation - We recommend that the Institute establish controls and procedures to ensure quarterly reporting is posted timely in accordance with the grant requirements. Response - Documentation of grant reporting will be maintained in multiple locations for future grant programs. Quarterly reporting is completed for the Education Stabilization Fund. The funds have been expended and the programs are in the closeout process. Conclusion - Response accepted.