Finding 612560 (2022-003)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2022-12-22
Audit: 31077
Organization: Mount Mercy University (IA)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The University incorrectly discharged a student's debt of $2,984 despite them not meeting eligibility criteria.
  • Impacted Requirements: The student was required to be enrolled after March 13, 2020, to qualify for debt discharge under federal guidelines.
  • Recommended Follow-Up: Management should enhance controls to ensure compliance with enrollment verification and federal regulations regarding HEERF funds.

Finding Text

2022-003 U.S. Department of Education Education Stabilization Fund Cluster COVID-19 - Education Stabilization Fund ? ARPA Institutional Portion (Federal Assistance Listing Number 84.425F) Federal Award Year: 2021-2022 Finding: The University improperly discharged a student?s debt who did not meet the guidelines of their debt discharge policy. Criteria: One of The University?s guidelines for students to be eligible for debt discharge was to be enrolled after March 13, 2020. Condition: A student who had left the University in 2019 received debt discharge in the amount of $2,984. However, as the student was not enrolled after March 13, 2020 they were not eligible for debt discharge. Cause: The University?s debt discharge process improperly included this student who had not been enrolled at the University since 2019, resulting in student receiving debt discharge when based on the University?s policy they were not eligible. Effect: Noncompliance with federal regulations for COVID-19 Education Stabilization programs. Context: One of forty students tested with debit discharge. Questioned costs: Over award of $2,984 of debt discharge of COVID-19 Education Stabilization funds. Recommendation: Management should review its control to verify a student was properly enrolled at March 13, 2020 and HEERF funds are in compliance with the University?s policy and federal regulations. Views of responsible officials: Management agrees with this finding. Please see corrective action plan.

Categories

Questioned Costs

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $9.76M
84.063 Federal Pell Grant Program $1.92M
84.038 Federal Perkins Loan Program, Beginning Loan Balance $503,126
84.031 Higher Education_institutional Aid $337,614
84.425 Education Stabilization Fund $306,286
84.033 Federal Work-Study Program $171,603
84.007 Federal Supplemental Educational Opportunity Grants $131,144
93.264 Nurse Faculty Loan Program (nflp) $116,351
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088