Bais HaMedrash and Mesivta of Baltimore’s Use of Professional Judgment

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Date Issued

Thursday, March 31, 2022

Submitting OIG

Department of Education OIG

Other Participating OIGs

Department of Education OIG

Agencies Reviewed/Investigated

Department of Education

Components

Federal Student Aid

Report Number

A20IL0005

Report Description

The objectives of our audit were to determine whether Bais HaMedrash and Mesivta of Baltimore (1) applied and documented its use of professional judgment in accordance with section 479A of the Higher Education Act of 1965, as amended (HEA), and (2) reported its use of professional judgment in accordance with the Application and Verification Guide.Bais HaMedrash and Mesivta of Baltimore did not apply professional judgment in accordance with section 479A of the HEA for 52 (80 percent) of the 65 students for whom it applied professional judgment for award year 2017–2018, award year 2018– 2019, or both.Additionally, Bais HaMedrash and Mesivta of Baltimore did not document its use of professional judgment in accordance with section 479A of the HEA for 37 (57 percent) of the 65 students for whom it applied professional judgment for award year 2017–2018, award year 2018–2019, or both.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

$155,845

Funds for Better Use

Additional Details

https://www2.ed.gov/about/offices/list/oig/auditreports/fy2022/a20il0005.pdf

Open Recommendations

This report has 3 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
1.1	Yes	$155,845	$0
Require Bais HaMedrash and Mesivta of Baltimore to return $155,845 in Pell overawards to the Department.
1.2	Yes	$0	$0
Take appropriate action pursuant to subpart G of Title 34 Code of Federal Regulations (C.F.R.) Part 668 for the extensive instances of noncompliance described in this finding.
2.1	Yes	$80,390	$0
Require Bais HaMedrash and Mesivta of Baltimore to provide documentation adequate to substantiate special circumstances and show that it applied professional judgment in accordance with section 479A of the HEA for the 37 students or return $80,390 in improper Pell payments to the Department.