Federal auditors say Baker University violated rules governing financial aid and student recruitment during the late 1990s.

If the recommendations by the auditor are approved by the U.S. Department of Education, the university could be forced to repay almost $16 million in financial aid money to the federal government.

Baker officials dispute the findings and say other universities cited for the same violations have never been forced to pay. They also say Baker’s policies would be in compliance with Department of Education regulations expected to be approved later this year.

Dan Lambert, Baker’s president, said he was surprised the report was issued at all.

“The period under review ended about four years ago,” he said. “I find it perplexing that the inspector general has chosen to release its findings now, when the DOE is on the verge of adopting policy that mirrors our position.”

The audit was conducted by the Inspector General’s Office of the Department of Education between 1996 and 1999. A spokeswoman for the office declined to comment on the audit Thursday.

Baker officials weren’t presented the final version of the audit until last Friday, said Annette Galluzzi, vice president for marketing and communication. However, they have seen previous drafts and were given an opportunity to respond.

Two violations

Auditors cited two problems at Baker, both with its School of Professional and Graduate Studies, which offers classes in Overland Park, Topeka and Wichita.

The first violation involved the federal government’s requirement that students who received federal financial aid spend at least 360 hours per year in class, with study groups or in independent study. Auditors said Baker violated the policy because it didn’t keep attendance records for study group meetings.

Galluzzi said she doubted any university kept attendance records for all its students and noted 600 study groups at Baker would have met 50,000 times during the audit period.

Lambert said Baker officials began keeping attendance records after auditors informed them of the rule.

The second violation involved the contract Baker has with the Institute for Professional Development (IPD), a private contractor that has provided marketing, recruiting, site location and record keeping for the School of Professional and Graduate Studies since 1988.

Federal law prohibits universities from paying recruiters based on the number of students they attract.

Because the amount IPD is paid depends partially on the amount of tuition money Baker collects, auditors said it violated that policy.

Galluzzi said Baker officials disagree with that assertion because IPD provides more than just recruiting.

Possible repercussions

The Inspector General’s report now will be turned over to the Department of Education officials.

If they agree with the recommendations, Baker would have to repay almost $14 million in financial aid to the federal government for the improperly recruited students and $1.8 million for violating the attendance rule.

Baker officials say other universities cited for similar violations including some with IPD contracts have not been punished.

Instead, the Department of Education has proposed changes to allow such contracts and loosen restrictions on keeping attendance for nontraditional programs, including online classes. Lambert said he expected those changes to be adopted by the end of the year, leaving Baker in compliance with federal regulations.

“As far as we can see, it’s addressed all our issues,” he said.