Mount Mary University, Inc.Higher Education

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 & 84.268 Federal Award Identification Number and Year: P063P252442-2025 & P268K252442-2025 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. Condition: The University failed to reconcile the enrollment statuses and effective dates per their records to the enrollment information per NSLDS. Questioned costs: None Context: From a statistically valid sample of sixty (60) students, two students were identified to have inaccurate enrollment information transmitted to NSLDS, and two additional students were improperly excluded from reporting to NSLDS. Cause: The University's internal controls failed to detect that the data reported and posted to NSLDS did not agree to the University's records. Effect: There is a risk that students have the incorrect NSLDS enrollment information, which can result in improper financial aid amounts being awarded. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that the University reviews withdrawals monthly to ensure that the students are reported correctly to NSC and subsequently to NSLDS. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 & 84.268 Federal Award Identification Number and Year: P063P252442-2025 & P268K252442-2025 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. Condition: The University failed to reconcile the enrollment statuses and effective dates per their records to the enrollment information per NSLDS. Questioned costs: None Context: From a statistically valid sample of sixty (60) students, two students were identified to have inaccurate enrollment information transmitted to NSLDS, and two additional students were improperly excluded from reporting to NSLDS. Cause: The University's internal controls failed to detect that the data reported and posted to NSLDS did not agree to the University's records. Effect: There is a risk that students have the incorrect NSLDS enrollment information, which can result in improper financial aid amounts being awarded. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that the University reviews withdrawals monthly to ensure that the students are reported correctly to NSC and subsequently to NSLDS. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063 & 84.268 Federal Award Identification Number and Year: P063P242442-2024 & P268K242442-2024 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. Condition: The University failed to reconcile the enrollment statuses and effective dates per their records to the enrollment information per NSLDS. Questioned costs: None Context: During the reporting window, the University went through a software update. As a result of this update, three students were identified to have inaccurate enrollment information transmitted during the transition. Cause: The University's internal controls failed to detect that the data reported and posted to NSLDS did not agree to the University's records. Effect: There is a risk that students have the incorrect NSLDS enrollment information, which can result in improper financial aid amounts being awarded. Repeat Finding: The finding is not a repeat finding. Recommendation: We recommend that the University review its enrollment certification batches subsequent to being posted by NSLDS. Views of responsible officials: There is no disagreement with the audit finding.

Assistance Listing Number(s), Federal Agency and Program Name: 84.063, 84.007, 84.033, and 84.268; United States Department of Education (ED), and 93.925; Department of Health and Human Services, Student Financial Assistance Cluster. Finding Type: Noncompliance and material weakness in internal control over compliance relating to special tests. Criteria: The University is responsible for designing, implementing, and maintaining internal control over compliance for special tests and provisions and for accurately and timely reporting significant data elements under the Campus-Level and Program-Level records within the National Student Loan Data System (NSLDS) that ED considers high risk. Statement of Condition: Management's review of the enrollment reporting did not detect errors on certain student data elements that were not timely filed. Certain student records within the NSLDS were identified with inaccurate data elements and others that were not timely reported. Questioned Costs: Questioned costs could not be determined. Context: There were a total of 230 in which the University was required to report significant dataw elements within the NSLDS. A total of 46 students were tested, and of those tested, 11 students were identified with either inaccurate data elements and/or student changes were not timely reported. Cause: The University’s internal control over compliance did not detect and correct the errors. The preparer incorrectly input the student's effective date and status into NSLDS resulting in inaccuracies in significant Campus-Level and Program-Level enrollment data elements that ED considers high risk. The University's internal control over compliance also did not correct and report errors in a timely manner in accordance with the ED's requirements. Effect: The University incorrectly reported certain Campus-Level and Program-Level records in NSLDS which is information that ED considers high risk. The University’s internal controls over compliance did not detect and correct the errors nor were the errors reported in a timely manner. Recommendation: We recommend management review policies and procedures surrounding enrollment reporting submissions to ensure the reports submitted to the ED are accurate and filed timely. A review performed by an appropriate individual separate from the preparer prior to the submission of the enrollment reports to NSLDS may improve the accuracy and timing of enrollment reporting. Management’s Response: Registrars will work with our IT department to ensure data retrieved from Jenzabar for NSLDS reporting is pulling all the correct information including student's status and all effective dates. Prior to the report being uploaded to NSLDS, the Registrar will review a sample of students to ensure the accuracy of the data. Once the reports are updated to NSLDS, Financial Aid and Veterans Services will review a sample of students and review data provided by NSLDS, again to confirm the accuracy of data at all stages.

Assistance Listing Number(s), Federal Agency and Program Name: 84.031F and 84.031C; United States Department of Education (ED) , and 47.076; National Science Foundation (NSF), Research and Development Cluster. Finding Type: Noncompliance and significant deficiency in internal control over compliance relating to cash management. Criteria: The Uniform Guidance requires the University to manage grant payments to minimize the time elapsing between the transfer of funds received from the federal government and disbursement by a recipient and/or to draw funds on an as-needed basis within three days before the funds are needed. Statement of Condition: The University withdrew the current year budget amount for one grant for $176,615 before incurring allowable expenses and did not disburse the funds within three days. The University kept the funds in an insured account and used the funds on eligible expenses by June 30, 2023. The internal controls over cash management were not operating effectively. Questioned Costs: Interest earned on the advanced funds during 2023 did not exceed an amount that was necessary to return to the funders. Context: The internal controls over cash management did not prevent, or detect and correct, the University from drawing an advance on a federal award prior to incurring, or within three days of paying for, allowable expenses. There was one grant that had a draw of $176,615 that was not in compliance with the cash management requirement. Cause: The University did not have the proper controls in place to ensure that cash advances were spent on allowable grant expenditures within a timely manner of the draw down of grant funds. Effect: The University was not in compliance with cash management requirements. The University also could have earned interest on the advance that would be necessary to return to the funders. Recommendation: We recommend management revisit its processes and controls over the preparation and review of draw downs to ensure the draw downs are supported by expenses prior to the draw down or funds are disbursed within 3 days of any advance draws. Management’s Response: A desk review of ALN #47.076 National Science Foundation (NSF) occured in August 2023 and identified 17.76% of the current year annual budget amount had been drawn down in advance of expenditures incurred and not fully utilized as indicated in 2 CFR 200.305 Federal Payments. MMU has discontinued the practice of drawing down funds in advance based on the budgeted amount for each year of the project (as prior grants allowed). Instead, MMU will draw down funds based on immediate cash requirements each month of the project after expenditures are incurred, reflected in the general ledger system and reviewed by the Principal Investigator (PI)/Co Principal Investigator (Co-PI) and Senior Accountant. The Business Office has implemented a cash management control as follows: review financial requirements upon grant submission and again when awarded, adjust accounting controls according to grantor requirements, actively participate in monthly review of financial reporting to grantor and document all financial activities as required.

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