FAC Explorer

Audit 6701

FY End
2023-06-30
Total Expended
$13.50M
Findings
2
Programs
10
Organization: Mount Marty University (SD)
Year: 2023 Accepted: 2023-12-14
Auditor: Eide Bailly LLP

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
4313 2023-003 Material Weakness - E
580755 2023-003 Material Weakness - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $10.54M Yes 0
84.063 Federal Pell Grant Program $1.17M Yes 1
93.364 Nursing Student Loans $814,079 Yes 0
84.038 Federal Perkins Loans $407,961 Yes 0
84.033 Federal Work-Study Program $161,409 Yes 0
97.008 Non-Profit Security Program $133,032 - 0
84.007 Federal Supplemental Educational Opportunity Grants $126,947 Yes 0
93.859 Biomedical Research and Research Training $114,793 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $20,746 Yes 0
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $8,950 - 0

Contacts

Name Title Type
MK4EGTTKK988 Lori Read Auditee
6056681566 Angie Hillestad Auditor
No contacts on file

Notes to SEFA

Title: Federal Student Loan Programs Accounting Policies: 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, 2023. 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. Expenditures reported in the schedule are reported on the accrual basis of accounting. When applicable, such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. No federal financial assistance has been provided to a subrecipient. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10% de minimis cost rate for applicable direct federal awards. For the student financial aid assistance program cluster, the administrative costs allowance was computed in accordance with the student financial assistance program cluster regulations The federal student loan programs included in the schedule are administered directly by Mount Marty University and balances and transactions relating to these programs are included in Mount Marty 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, 2023 consists of: Outstanding Balance at June 30, 2023 $ 3 09,295 726,002 Federal Perkins Loans Nursing Student Loans Program Name Federal Financial Assistance Listing Number 84.038 93.364 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.

Finding Details

Finding 2023-003
Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.063 Federal Pell Grant Program (PELL) P063P202209, P063P212209, P063P222209 Eligibility Material Weakness in Internal Control over Compliance Criteria: 34 CFR 690 contains requirements that apply to student eligibility over the Federal Pell Grant Program. Condition: Two instances identified in which the student was eligible to receive Federal Pell assistance but was not awarded the assistance. Cause: The report used by the Financial Aid Office to monitor Pell eligibility in the summer was ran incorrectly resulting in a Pell-eligible student being improperly excluded from the report. Additionally, Pell eligibility was not monitored for a student during the 75-day requirement to satisfy an incomplete grade. Effect: Two students were under awarded Pell aid. Questioned Costs: $1,355 in assistance was not awarded that should have been. Context/Sampling: A non-statistical sample of 60 of the University’s 658 students receiving student financial assistance was selected for testing. The sample resulted in testing $644,190 out of $13,239,499 in federal financial assistance. Repeat Finding from Prior Years: No Recommendation: We recommend that management review procedures and control processes over monitoring of Pell eligibility. Views of Responsible Officials: Management agrees with the finding.
Finding 2023-003
Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.063 Federal Pell Grant Program (PELL) P063P202209, P063P212209, P063P222209 Eligibility Material Weakness in Internal Control over Compliance Criteria: 34 CFR 690 contains requirements that apply to student eligibility over the Federal Pell Grant Program. Condition: Two instances identified in which the student was eligible to receive Federal Pell assistance but was not awarded the assistance. Cause: The report used by the Financial Aid Office to monitor Pell eligibility in the summer was ran incorrectly resulting in a Pell-eligible student being improperly excluded from the report. Additionally, Pell eligibility was not monitored for a student during the 75-day requirement to satisfy an incomplete grade. Effect: Two students were under awarded Pell aid. Questioned Costs: $1,355 in assistance was not awarded that should have been. Context/Sampling: A non-statistical sample of 60 of the University’s 658 students receiving student financial assistance was selected for testing. The sample resulted in testing $644,190 out of $13,239,499 in federal financial assistance. Repeat Finding from Prior Years: No Recommendation: We recommend that management review procedures and control processes over monitoring of Pell eligibility. Views of Responsible Officials: Management agrees with the finding.