Audit 383527

US DEPARTMENT OF EDUCATION Student Financial Assistance Cluster CFDA# 84.033, 84.063, 84.007, and 84.268 Eligibility – Cost of Attendance Significant Deficiency in Internal Control over Compliance Criteria: Institutions are required to calculate cost of attendance to aid in determining financial aid eligibility and award amounts and to ensure that total aid is not awarded in excess of the student’s financial need or cost of attendance. Condition: During our testing over eligibility and cost of attendance, we noted 3 students out of the 40 tested that had questioned costs related to the calculation of the cost of attendance. All 3 students were in the aviation program. Cause: Within the aviation program, the cost of attendance was set up based on expected high-cost special courses individualized for each student and financial aid awards were based on the cost of attendance calculations. However, actual courses taken sometimes differed from expected. Effect: When actual fees and courses taken differed from expected, it caused cost of attendance to overstated, thus leading to loan and grant funds in excess of what was needed. Questioned Costs: $100,000 Context/Sampling: The College disbursed Federal financial aid to approximately 829 students in the 2024-2025 school year. A non-statistical sampling of 40 students was selected for testing. Repeat Finding: No Auditor’s recommendation: For specialized individual fees in the aviation program, we recommend adjusting cost of attendance based on the actual courses attended and fees incurred. Management’s response: The Financial Aid Department now requires verification of actual course enrollment before disbursement for specialized programs. Mid-term audits were implemented for the aviation program effective Spring 2026.

US DEPARTMENT OF EDUCATION Student Financial Assistance Cluster CFDA# 84.033, 84.063, 84.007, and 84.268 Reporting – Common Origination and Disbursement (COD) Reporting Material Weakness in Internal Control over Compliance Criteria: Institutions are required to submit Direct Loan and Pell Grant origination and disbursement records to the COD system within 15 calendar days after the institution makes a disbursement. For the 2024-2025 award year, due to batch correction issues, institutions were not required to report disbursements until November 30, 2024 or 15 calendar days after disbursement, whichever is later. Condition: During our testing over the COD reporting requirements, we noted that the reporting was done but was done outside of the 15-day window (or November 30, 2024 deadline as applicable) for the majority of the 40 students we tested. Cause: The College experienced problems with EDConnect software and other system issues which caused at least one late report for the majority of the students tested Effect: The College is not in compliance with the COD reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 829 students in the 2024-2025 school year. A non-statistical sampling of 40 students was selected for testing. Repeat Finding: No Auditor’s recommendation: The College should implement additional processes to ensure disbursement data gets reported timely and to follow up on software issues as soon as possible. Management’s response: We have implemented automated alerts in Jenzabar and scheduled weekly compliance checks. IT is working with EDConnect to prevent future delays.