Audit 380724

2025-004 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.408 (a)(2) notes, “In accordance with procedures established by the Secretary, an institution offering any group of substantially similar programs… must report to the Department… (2) For each student – (i) Information needed to identify the student and the institution; (ii) The date the student initially enrolled in the program; (iii) The student’s attendance dates and attendance status (e.g., enrolled, withdrawn, or completed) in the program during the award year; (iv) The student’s enrollment status (e.g., full time, three-quarter time, half time, less than half time) as of the first day of the student’s enrollment in the program…” Condition: In our testing of student files, three out of 40 students (7.5%) had enrollment statuses not timely or accurately reported to NSLDS. We consider this finding to be an instance of noncompliance in relation to the Special Tests and Provisions compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2024-008. Cause: The causes for the untimely and incorrect enrollment status reporting was caused by a citizenship/foreign student flag issue that was not identified and resolved timely, an identified error in their reporting system that has since been resolved, and other unknown errors. Effect: The result is that the Department of Education was not made aware of the changes in student statuses in a timely manner and students’ enrollment dates were reported to NSLDS inaccurately or were missing. Questioned Costs: $0 Recommendation: We recommend that the College reviews their policies and procedures to ensure students’ enrollment statuses are reported accurately and timely. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

2025-003 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.22 (a)(1) states “When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b). (2) For an institution that is not required to take attendance, an institution must determine the withdrawal date for a student who withdraws without providing notification to the institution no later than 30 days after the end of the earlier of the – (i) Payment period or period of enrollment, as appropriate, in accordance with paragraph (e)(5) of this section; (ii) Academic year in which the student withdrew; or (iii) Educational program from which the student withdrew” An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student’s account for outstanding charges (34 CFR 668.22). Condition: The College did not accurately complete refund calculations for 2 out of 9 students (22.2%) tested that both required post-withdrawal disbursements. For one of these students, the College did not notify the student of the post-withdrawal disbursement of Federal Direct Loans before it was applied to the student’s account. We consider this finding to be a significant deficiency in relation to the Special Tests and Provisions compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2024-007. Statistical sampling was not used in making sample selections. Questioned Costs: $319 Effect: Miscalculations in the Return of Title IV funds calculations results in incorrect amounts returned by the College or incorrect amounts disbursed to students in post-withdrawal disbursements. For the post-withdrawal disbursement notification, without notifying the student, direct loans may be applied to the student’s account that they are not aware of or would have wanted to decline the disbursement if they were notified. Recommendation: For the incorrect refund calculations, we recommend the College continually educate themselves on the requirements for the return of title IV fund and ensure the proper controls are implemented accurately to return unearned aid or disburse earned aid in post-withdrawal disbursements. For not notifying the student of the post-withdrawal disburrsement, we recommend the College reviews their policies and procedures written notification is timely provided to the student for post-withdrawal disbursements of Federal Direct Loans to allow them to decline, if they choose to do so. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

2025-002 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 682.201 (a) (1-2) notes, “(1) To obtain a Direct Subsidized Loan or a Direct Unsubsidized Loan, a student must complete a Free application for Federal Student Aid and submit it in accordance with instructions in the application. (2) If the student is eligible for a Direct Subsidized Loan or a Direct Unsubsidized Loan, the school in which the student is enrolled must perform the following functions: (i) create a loan origination record and transmit the record to the Secretary. (ii) Ensure that the loan is supported by a completed Master Promissory Note (MPN) and, if applicable, transmit the MPN to the Secretary. (iii) In accordance with 34 CFR 668.162, draw down funds or receive funds from the Secretary, and disburse the funds to the student.” Condition: 4 of the 40 student files (10%) we examined, we noted the students were not properly awarded Direct loans. We consider this condition to be a significant deficiency relating to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2024-004. Statistical sampling was not used in making sample selections. Questioned Costs: $0 Cause and Effect: Without proper review of eligibility of financial aid, students may receive an incorrect amount of Title IV aid. Recommendation: We recommend the College evaluate policies and procedures to ensure students receive the proper amount of Title IV aid. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.