Audit 375900

Finding No. 2025-001: Untimely Reporting of Student Enrollment Status to the National Student Loan Data System Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Special Tests and Provisions: Enrollment Reporting Known Questioned Costs: $-0- Likely Questioned Costs: $-0- Criteria According to 34 CFR §685.309(b), institutions must report changes in student enrollment status to the National Student Loan Data System (NSLDS) within 30 days of the change or include the change in response to the next scheduled Enrollment Reporting roster file within 60 days. Condition During compliance testing of 14 student records, it was found that 3 students—representing approximately 21% of the sample—were not reported to NSLDS in a timely manner, exceeding the required reporting deadlines. Cause The untimely reporting resulted from a lapse in internal controls over the enrollment reporting process, possibly due to oversight or insufficient monitoring of reporting schedules. Effect Failure to report enrollment status changes promptly can lead to incorrect deferment or repayment statuses for student borrowers, potentially affecting their financial obligations and the federal government's ability to manage the student loan portfolio effectively. Repeat Finding This is a repeat finding to No. 2024-002. Recommendation We recommend that the College review and enhance its procedures for monitoring and reporting enrollment status changes. This could involve implementing automated alerts, providing additional staff training, or establishing more robust internal checks to ensure adherence to reporting deadlines. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.

Finding No. 2025-002: Inadequate Timing of Return of Student Funds Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Eligibility Known Questioned Costs: $350 Likely Questioned Costs: $350 Criteria According to 34 CFR §668.164(h), institutions must pay the credit balance directly to the student or parent as soon as possible but no later than 14 days after: 1) the first day of class of a payment period if the credit balance occurred on or before that day, or 2) the balance occurred if that was after the first day of class. Condition During our compliance testing of 85 student files, we discovered that 6 files—representing approximately 6% of the sample—had funds that were not appropriately returned in a timely manner. There were 5 files who were not refunded within the 14 day time period and 1 file who was charged a soccer fee when they did not end up playing soccer. Cause The untimely refunds of student accounts resulted from a lapse in internal controls over the student account refund process, possibly due to oversight or insufficient monitoring of student accounts within the Jenzabar software. Effect Failure to refund student accounts timely can lead to incorrect federal expenditures or funding of student accounts, potentially affecting the College’s receipt of federal funding. Repeat Finding This is not a repeat finding. Recommendation We recommend that the College review and enhance its procedures for monitoring and funding student accounts. This could involve implementing automated alerts, providing additional staff training, or establishing more robust internal checks to ensure adherence to refund requirements. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.

Finding No. 2025-003: Inadequate Calculation of Return of Title IV Funds Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Special Tests and Provisions: Return of Title IV Funds Known Questioned Costs: $57 Likely Questioned Costs: $57 Criteria Per 34 CFR §668.22(a)(3), percentages related to the calculation of the Return of Title IV Funds are calculated to four decimal places, and rounded to three decimal places. The third decimal place is rounded up if the fourth decimal place is five or above. Condition During our compliance testing of Return of Title IV funds over 21 students, we discovered that the College was utilizing two decimal places rather than three decimal places as required by the Federal Student Aid Handbook. This impacted 13 students in the Spring 2025 semester, amounting to $57 of funds that should have been returned. Cause The miscalculation of return of funds appears to be due to inadequate internal controls over Federal Student Aid Handbook requirements, resulting in utilizing a different amount than what was required. Effect Without utilizing the appropriate decimal places, the College may be misusing federal funding by not calculating the appropriate amount to be returned. Repeat Finding This is not a repeat finding. Recommendation We recommend that the College strengthen its controls over ensuring the Federal Student Aid Handbook is being monitored for appropriate requirements. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.