Audit 371379

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.033 – Federal Work Study Program Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 675.18(g) require institutions to use at least seven percent of the sum of its initial and supplemental Federal Work Study allocation for an award year to compensate students employed in community service activities unless a waiver is obtained from the Department of Education. Condition: It was noted during audit testing that the University did not meet the community service requirement for its Federal Work Study allocation and was unable to obtain a waiver from the Department of Education releasing it from the requirement. Prior to the 2024-2025 award year, the University had received a waiver for this requirement. Questioned Costs: N/A Context: Prior to the 2024-2025 award year, the University had received a waiver for this requirement. Cause: Management did not receive a waiver from the Department of Education to waive this requirement. Effect: The Department of Education could reduce or eliminate the University’s Work Study award. Repeat Finding: No Auditor’s Recommendation: We recommend that the University establish procedures to ensure that at least 7% of Federal Work Study allocation is used for community service jobs, or successfully receive a waiver as had happened in previous years. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.038 – Federal Perkins Loans 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans 84.379 – Teacher Education Assistance for College and Higher Education Grants Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309(b), states schools must have some arrangement to report student enrollment data to NSLDS through an enrollment roster file. The school is required to report changes in the student’s enrollment status, the effective date of the status, and an anticipated completion date. Also, the Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 day. There are two categories of enrollment information; "Campus Level" and "Program Level," both of which need to be reported accurately and have separate record types. Condition: During our testing, it was noted 1 of 22 students enrollment information on NSLDS did not match their institutional information. The institution also must update all records every 60 days, and we noted 1 out of 22 students had instances greater than 60 days where their records were not updated. Questioned Costs: N/A Context: The enrollment roster file contained dates that were incorrect for the Enrollment and Program Level effective dates. In the cases of this error the enrollment information should have been the date per institution's records for the Campus and Program Level. There were also instances where the information on the Enrollment and Program level were inconsistent with the University's records. Finally, Updates to NSLDS were not completed in a timely manner and some were not updated at all. Cause: The University has had turnover and updates were missed. Effect: The NSLDS system is not updated with the student information which can cause a student to not properly enter the repayment period. Repeat Finding: No Auditor’s Recommendation: We recommend the University review its reporting procedures to ensure the students’ statuses are accurately and timely reported to NSLDS as required by regulations. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 – Federal Supplemental Education Opportunity Grants 84.033 – Federal Work Study Program 84.038 – Federal Perkins Loans 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Student Loans 84.379 – Teacher Education Assistance for College and Higher Education Grants Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2024 to May 31, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.164(h) states a Title IV, HEA credit balance occurs whenever the amount of Title IV, HEA program funds credited to a student's ledger account for a payment period exceeds the amount assessed the student for allowable charges associated with that payment period. A Title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but, (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: During our testing of credit balances resulting from federal funds, we noted 1 credit balance out of 40 tested where the credit balance was not refunded within the 14 day period. Questioned Costs: N/A Context: During our testing of credit balances resulting from federal funds, we noted 1 credit balance out of 40 tested where the credit balance was not refunded within the 14 day period. Cause: The University did not have proper procedures in place to ensure all credit balances are refunded within the 14 day period. Effect: The University did not refund students within 14 days for credit balances that arose from federal funds as required by ED regulations. Repeat Finding: No Auditor’s Recommendation: We recommend the University review their current policies and procedures around credit balances and ensure the processes in place are sufficient to ensure student credit balances due to federal funds are refunded within 14 days. Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.