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3.10.3

Financial Aid Audits
The institution audits financial aid programs as required by federal and state regulations.

Off-site Preliminary Judgment
  Compliant      Non-Compliant      Not Applicable

Narrative

Summary

The 2007 Financial Aid Audit is provided, in addition to an explanation for its delay.

KPMG issued the final June 30, 2007 A133 Audit report on June 27, 2008. The delay in issuance of the A133 report was related to investigations involving an employee who was the Principal Investigator on three (3) research grants sponsored by NASA and NSF. In the notes to the audited financial statements (Note 16), KPMG states:

  • “The College has received several subpoenas from the United States Attorney’s office of the Northern District of Georgia and the Office of the Inspector General (OIG) of NASA and NSF regarding investigations into grant compliance matters for certain federal awards granted to the College. Management has responded to the OIG document requests. In addition, the College has conducted an independent analysis of the grant compliance matters. The College is awaiting final resolution from the OIG but does not believe it will have a material adverse impact on the financial statements.”

The College has experienced some incidents where refunds of Title IV to the Department of Education and loan providers, as a result of student withdrawals, has been completed after the 30 day window allowed by federal regulations. The College has taken corrective measures to revise systems and improve interdepartmental communications, and facilitate the timely processing of refunds of Title IV funds. To provide assurance that funds will be available from which to make refunds, the College has posted an irrevocable letter of credit, payable to the Secretary of Education, in the amount of $6,368. This represents 25% of total dollars refunded.

 
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