Audit 383150

2024-004 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2024. Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 15 out of 40 students tested (37.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2023-007. Statistical sampling was not used in making sampling selections. Questioned Costs: N/A Cause: The students were incorrectly reported due to errors in their financial aid system. Effect: The College did not timely and accurately submit enrollment status information, which has the potential to delay the start of the repayment period for students who have received loans. Recommendation: We recommend the College correct all known errors in their financial aid system to prevent further errors. View of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

2024-005 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2024 Criteria: The College must establish and maintain the financial records that reflect each Title IV program transaction on a current basis (34 CFR 668.24). Condition: The College incorrectly reported tuition and fees on the Fiscal Operations Report and Application to Participate (FISAP) for the 2022-2023 academic year. We consider this to be an instance of noncompliance of the Reporting compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2023-008. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause: This condition was caused by inadequate controls over Reporting and incorrect information provided at time of FISAP submission. Effect: The College did not correctly report tuition and fees on the FISAP that was submitted to the Department of Education. Recommendation: We recommend that the College puts controls in place to review all inputs to the FISAP report to ensure all amounts reported are accurate and agree with the College’s records. View of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

2024-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2024 Criteria: A school performs internal reconciliation when it compares business office records of funds requested, received, disbursed, and returned to financial aid office records of funds awarded to students. When the school compares its reconciled internal records to the Department’s records of funds received and returned, and of grants or loans originated and disbursed to students at the school, it is performing external reconciliation. A school ensures that the Department’s records reconcile with the school’s records, both at the cumulative and individual student levels, when it performs external reconciliation. (34 CFR 668.166) Condition: The College disbursed funds to students during the appropriate semesters in a timely manner, however, did not draw the federal direct funds down from the Department of Education until September 2024, outside of the award period for the disbursed award year of 2023-2024. We consider this finding an instance of noncompliance and is not a repeated finding. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause: The Institution had significant staff turnover, which impacted proper timing for drawdowns. Effect: The College is unable to properly reconcile on a monthly basis as funds posted to student ledgers are not drawn down from the Department of Education until months after disbursement. This may lead to inconsistencies between school records and the Department of Education within the Common Origination and Disbursement (COD) system. Recommendation: Sikich recommends the Institution create standards of procedures to disburse the appropriate student eligible Federal Direct program amounts following heightened cash monitoring rules, and once applied request the drawdown within a set number of days to ensure proper reconciliation. View of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.