Finding 1201469 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-03-30

Audit: 396040

Organization: Maranatha Baptist University (WI)

Auditor: CLIFTONLARSONALLEN LLP

AI Summary

Core Issue: One student did not receive an official award letter for Title IV funds due to communication issues stemming from a late FAFSA submission.
Impacted Requirements: The school failed to notify students about their financial aid awards as required by federal regulations (34 CFR 668.165(a)(1)).
Recommended Follow-Up: The University should keep records of all award notifications in their financial aid software to prevent future communication gaps.

Finding Text

Federal Agency: U.S Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.007, 84.063 & 84.268 Federal Award Identification Number and Year: P007P257598 – July 1, 2024 – June 30, 2025, P063P254177 – July 1, 2024 – June 30, 2025 & P268K254177 – July 1, 2024 – June 30, 2025 Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matter Criteria or specific requirement: Prior to making a disbursement, the school must notify students of the amount and type of Title IV funds they are expected to receive, and how and when those disbursements will be made (often referred to as an award letter or college financing plan) (34 CFR 668.165(a)(1)). Condition: During our testing, we noted that one (1) of forty (40) students selected for testing did not receive an award letter. Questioned costs: There are no questioned costs. Context: A statistically valid sample of forty (40) students was selected for testing to determine eligibility to receive student financial aid, as required by the Department of Education. One student selected for testing did not receive an official award letter as a result of their award packaging communication being primarily via email due to their late FAFSA submission. The University staff in charge of the email communication is no longer employed at the University; therefore, documentation of the notification of disbursements was unable to be furnished. Cause: The University no longer has access to the communications between the effected student and former staff member. Effect: There is a risk that adverse enrollment decisions are made due to incomplete records available to the student. Repeat finding: No Recommendation: We recommend that the University maintain documentation of both formal and informal award notifications in their financial aid software to ensure all necessary communications are made. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Education Maranatha Baptist University (the University) respectfully submits the following corrective action plan for the year ended June 30, 2025. Audit period: July 01, 2024 to June 30, 2025 The findings from the schedule of findings and questioned costs are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. FINDINGS—FINANCIAL STATEMENT AUDIT Our audit did not disclose any matters required to be reported in accordance with Government Auditing Standards. FINDINGS—FEDERAL AWARD PROGRAMS AUDITS U.S. Department of Education 2025-001 Student Financial Assistance Cluster – Assistance Listing No. 84.007, 84.063 & 84.268 Recommendation: We recommend that the University maintain documentation of both formal and informal award notifications in their financial aid software to ensure all necessary communications are made. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University Financial Aid Office will add a step in the awarding process to verify that award emails are sent and are documented in the system. Name of the contact person responsible for corrective action: Donald Donovan, Chief Financial Officer Planned completion date for corrective action plan: June 30, 2026 *** If the U.S Department of Education has questions regarding this plan, please call Donald Donovan, Chief Financial Officer, at 920-206-2314.

Other Findings in this Audit

1201467 2025-001

Material Weakness Repeat
1201468 2025-001

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.063	FEDERAL PELL GRANT PROGRAM	$1.84M
84.268	FEDERAL DIRECT STUDENT LOANS	$1.33M
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$36,680