Finding 1174796 (2025-001)

Material Weakness Repeat Finding
Requirement
I
Questioned Costs
-
Year
2025
Accepted
2026-02-20
Audit: 388329
Organization: Marian University (IN)

AI Summary

  • Core Issue: The University failed to meet federal procurement, suspension, and debarment requirements, leading to material weaknesses and noncompliance.
  • Impacted Requirements: Noncompliance with procurement guidelines resulted in questioned costs of $210,000 for services procured incorrectly.
  • Recommended Follow-Up: Update and finalize procurement policies to align with federal regulations and ensure consistent application for all federally funded acquisitions.

Finding Text

Federal Program Name: Full-Service Community Schools Program Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Full-Service Community Schools Program, 84.215J Award Year: July 1, 2024 – June 30, 2025 Criteria or Specific Requirement: Procurement, suspension and debarment Condition: The University did not comply with the federal procurement, suspension, and debarment requirements (Material Weakness and Material Noncompliance) Questioned Costs: $210,000, calculated as costs identified in our sample that were not expended in accordance with the applicable procurement, suspension, and debarment requirements. Context: During testing of compliance with the procurement, suspension and debarment compliance requirements, the one item selected for testing resulted in an error. From a population of two vendors with a total of $224,880, a sample of one vendor valued at $210,000 was selected for testing. This selection did not apply the applicable procurement, suspension, and debarment requirements in identifying and selecting a vendor. Our sample was not, and was not intended to be, statistically valid. Effect: Services were procured without applying the appropriate compliance guidelines. Cause: While the University has a draft procurement policy, it is not necessarily compliant with federal regulations and was not consistently applied to acquisitions funded by the grant. Repeat Finding: No Recommendation: We recommend the University update and finalize the procurement policies to comply with federal requirements and ensure the updated policies are followed when acquiring goods and services using federal funds. Views of Responsible Officials and Planned Corrective Action: See corrective action plan prepared by management.

Corrective Action Plan

The University’s procurement policy will be updated to comply with federal requirements. The University will ensure the updated policy will be implemented and followed when acquiring funds to be spent with federal funds. The University will ensure that training and procedures are changed to be in compliance with the federal procurement, suspension and debarment requirements.

Categories

Procurement, Suspension & Debarment

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $60.00M
84.063 FEDERAL PELL GRANT PROGRAM $6.30M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.57M
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $1.44M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $854,821
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $605,169
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $529,750
84.033 FEDERAL WORK-STUDY PROGRAM $324,854
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $278,305
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $162,042
47.074 BIOLOGICAL SCIENCES $153,217
84.021 OVERSEAS PROGRAMS - GROUP PROJECTS ABROAD $148,714
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $129,931
84.038 FEDERAL PERKINS LOAN PROGRAM $119,028
84.425 EDUCATION STABILIZATION FUND $86,689
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $52,379
93.178 NURSING WORKFORCE DIVERSITY $38,027
93.866 AGING RESEARCH $24,485
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,316
19.009 ACADEMIC EXCHANGE PROGRAMS - UNDERGRADUATE PROGRAMS $10,912