Finding 957198 (2023-001)

Significant Deficiency
Requirement
C
Questioned Costs
$1
Year
2023
Accepted
2024-03-17
Audit: 295435
Organization: University of Indianapolis (IN)
Auditor: Crowe LLP

AI Summary

  • Core Issue: The University improperly used federal funds to cover a non-federal share for the Federal Work Study program, totaling $90,184.
  • Impacted Requirements: The waiver for non-federal share matching expired after the 2020-2021 award year, meaning the University was not compliant for the 2022-23 award year.
  • Recommended Follow-Up: Management should ensure staff are informed about DOE announcements and verify the correct funding sources for FWS to prevent future issues.

Finding Text

Finding 2023-01: Federal Agency: U.S. Department of Education (DOE) Federal Program: Student Financial Assistance Cluster Assistance Listing Number and Funding: 84.033, Federal Work Study (FWS) Audit Findings: Significant Deficiency, Noncompliance Criteria: FWS Federal Share Waiver expired (CARES Act Sec 3503) - The U.S. Department of Education (DOE) waived the requirement that a participating institution of higher education provide a non-federal share to match federal funds provided to the institution for the FWS and FSEOG programs for the 2019-2020 and 2020-2021 award years, but not the 2021-22 or 2022-23 award years. Condition: For the 2022-23 award year, the University did not provide their non-federal share to match federal funds provided to the University for the FWS program. As a result, the University improperly drew down $90,184 of FWS federal funding. Cause: The condition was caused by managements oversight of the DOE’s non-federal share waiver time period which resulted in the University over drawing federal funds. Effect: As a result of these matters, the University made additional draws of federal funds. Questioned costs: $90,184 Context: As part of our SEFA testing procedures, we noted that the management-calculated non-federal share of $90,184 of FWS was being covered by federal dollars when it should have been covered by the University’s general fund. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: We recommend that management ensure individuals are aware of and checking for DOE announcements and exemptions and ensuring the correct amount of FWS funding is being covered by federal and non-federal dollars. Views of responsible officials and planned corrective actions: Management acknowledges the finding. See management’s corrective action plan attached to this audit report.

Categories

Questioned Costs Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 380756 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $37.13M
84.063 Federal Pell Grant Program $7.31M
84.411 Investing in Innovation (i3) Fund $1.74M
84.038 Federal Perkins Loan Program $646,299
93.822 Health Careers Opportunity Program $628,506
84.007 Federal Supplemental Educational Opportunity Grants $359,191
84.033 Federal Work-Study Program $309,816
84.425 Covid-19 - Education Stabilization Fund $175,674
93.107 Area Health Education Centers Point of Service Maintenance and Enhancement Awards $127,508
93.323 Epidemiology and Laboratory Capacity for Infectious Diseases (elc) $84,032
93.232 Loan Repayment Program for General Research $72,895
47.076 Education and Human Resources $51,758
47.041 Engineering $39,693
21.027 Coronavirus State and Local Fiscal Recovery Funds $35,547
93.470 Alzheimer's Disease Program Initiative (adpi) $32,609
93.048 Special Programs for the Aging_title Iv_and Title Ii_discretionary Projects $13,378
45.310 Grants to States $10,056
93.045 Special Programs for the Aging_title Iii, Part C_nutrition Services $7,773
12.630 Basic, Applied, and Advanced Research in Science and Engineering $2,213
93.296 State Partnership Grant Program to Improve Minority Health $-5,235