Audit 387248

Questioned Costs $ -0- Finding No. 2025 001: Return of Title IV Funds – Control Deficiency Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.063P – Federal Pell Grant Program Condition During our audit, we noted for 3 out of 15 students selected for testing, the institution failed to determine the withdrawal date for students who unofficially withdrew from the institution within 30 days after the end of the period of enrollment. Criteria Title 34, Section 668.22(j)(2) of the U.S. Code of Federal Regulations (“CFR”) requires if an institution is not required to take attendance, the 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 (1) the payment period or period of enrollment, as applicable; (2) the academic year; or (3) the program. Cause Due to on going staffing issues within the financial aid office, the institution was unable to perform the return of the Title IV funds calculation timely. Effect In accordance with 34 CFR 668.84, the Secretary of Education may levy fines and/or penalties on the institution or suspend future participation in federal student financial assistance programs for failure to comply with the requirements applicable to Title IV of the Higher Education Act (“HEA”). Context A sample of 15 students who withdrew from the institution and were disbursed a total of $55,721 in Title IV funds were selected for testing from a population of 131 students who withdrew and were disbursed a total of $518,398 in Title IV funds. Our test results found 3 students did not have their withdrawal date determined by the institution in a timely manner. Our sample was a statistically valid sample. Repeat Finding This is a repeat of prior audit Finding No. 2024-002. Recommendation We recommend that the institution determines the withdrawal date for students who withdrew without providing notification within 30 days after the end of the period of enrollment in accordance with federal regulations. Views of Responsible Officials and Planned Corrective Actions The institution has completed the recruitment of four full-time positions, including a Financial Aid Director, to ensure adequate administrative capacity. The institution has also implemented procedures to prioritize and monitor the timely determination of withdrawal dates for students.

Questioned Costs $ -0- Finding No. 2025 002: Financial Aid Administration – Control Deficiency Federal Agency: U.S. Department of Education Assistance Listing Number and Title: 84.268 – Federal Direct Student Loans Condition During our audit, we noted for 2 out of 10 students selected for testing, the institution failed to provide exit counseling to the borrower within a timely matter. The last day of the semester was utilized as the first day of the exit counseling timeline for these graduating students. Criteria Title 34, Section 685.304 of the CFR states that an institution must ensure that exit counseling is conducted with each Direct Subsidized Loan or Director Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the institution. If a borrower withdraws from the institution without the institution’s prior knowledge or fails to complete an exit counseling session as required, the institution must ensure that exit counseling is provided through either interactive electronic means or by mailing counseling materials to the borrower at the borrower’s last known address within 30 days after learning that the borrower has withdrawn from the institution or failed to complete exit counseling as required. Cause The institution experienced a staffing shortage, which caused the exit counseling to be conducted one day after the required deadline. Effect In accordance with 34 CFR 668.84, the Secretary of Education may levy fines and/or penalties on the institution or suspend future participation in federal student financial assistance programs for failure to comply with the requirements applicable to Title IV of the HEA. Context A sample of 10 student enrollment changes were selected for audit from a population of 62 student enrollment changes. Our test found 2 exit counseling sessions conducted with borrowers that were not performed in a timely manner. Our sample was a statistically valid sample. Repeat Finding This is a not a repeat finding. Recommendation We recommend that the institution provide exit counseling to borrowers timely. Views of Responsible Officials and Planned Corrective Actions The institution has completed the recruitment of four full-time positions, including a Financial Aid Director, to ensure adequate administrative capacity. The institution has also implemented procedures to prioritize and monitor the timely execution of exit counseling to borrowers.