Audit 387647

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Compliance Requirement(s): Special Tests and Provisions – Disbursement to or on Behalf to Students Material Weakness in Internal Control Criteria: 34 CFR 668.164(h)(2)(i,ii) states that A title IV, HEA credit balance must be paid directly to the student or parent as soon as possible, but no later than—Fourteen (14) days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or Fourteen (14) days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period. Condition: During our testing of compliance for disbursements to or on behalf to students, there were 5 instances out of 60 where the College did not refund a student’s within the required time frame of 14 days from the first day of class or 14 days after the credit balance was created. Cause: Enrollment Services was not able to process credit to students in a timely manner, due to a new system implementation that was supposed to refund the students and staffing shortage in this department. Effect: The student’s refund was not processed in a timely manner. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 participants out of 2,393 students who received Title IV funding were selected for testing. Repeat Finding from Prior Year(s): No Recommendation: The Enrollment Services Office should review their current practices and controls over processing student refunds since this is a manual process and at the beginning of each semester select a sample of student to verify they have received their refund in a timely manner. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Compliance Requirement(s): Reporting Material Weakness in Internal Control Criteria: 34 CFR 690.83 and the FSA Handbook states that an Institution must report accurate and timely data. Condition: During our testing of compliance for COD Reporting, there were 6 instances out of 60 where the College did not report a student’s disbursement information to COD accurately. Cause: Enrollment Services was not able to run accurate reports from their student information system, causing delays and accuracy issues with being able to accurately and timely report when students received Title IV funding. Effect: The student’s Title IV funding was not accurately reported in COD and/or was not reported timely. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 participants out of 2,393 students who had received financial aid during the year. Repeat Finding from Prior Year(s): No Recommendation: The Enrollment Services Office should review their current practices and controls over COD reporting to ensure any disbursement of a student’s Title IV is reported both accurately and timely to COD. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Compliance Requirement(s): Special Tests and Provisions – NSLDS Reporting Significant Deficiency in Internal Control Criteria: 34 CFR 690.83(b)(2) and 34 CFR 685.309 states that Institutions are responsible for timely and accurate reporting of a student’s enrollment status and changes in those enrollment statuses, whether they report directly or via a third-party servicer. When an Institution is made aware of a change in a student’s enrollment status, the Institution has 60 days to update the change in enrollment status via NSLDS. Condition: During our testing of compliance for Enrollment Reporting, there were 3 instances out of 60 where the College did not report a student’s change in enrollment status accurately or within the required time frame of 60 days from the effective date of the student’s change in enrollment status. Cause: Enrollment Services was not able to run accurate reports from their student information system, causing delays and accuracy issues with being able to accurately and timely report when students graduated or had a change in enrollment status. Effect: The student’s change in enrollment status was not accurately reported in NSLDS and/or was not reported timely. Questioned Costs: None reported. Context/Sampling: A nonstatistical sample of 60 participants out of 1,016 students who had a change in enrollment status were selected for testing. Repeat Finding from Prior Year(s): Yes, 2024-001 Recommendation: The Enrollment Services Office should review their current practices and controls over reporting changes in student’s enrollment statuses to ensure any change to a student’s enrollment status is reported both accurately and timely to NSLDS. Views of Responsible Officials: Management agrees with the finding.

U.S. Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing Number(s): 84.063, 84.007, 84.268, 84.033 Compliance Requirement(s): Eligibility Significant Deficiency in Internal Control Criteria: Under 34 CFR 690.63 and 685.200, institutions must calculate Pell grant and federal direct loan awards based on the student’s eligible enrollment status, cost of attendance, expected family contribution (EFC) or student aid index (SAI), satisfactory academic progress, and other Title IV eligibility requirements. Institutions are required to ensure award amounts are accurate and supported by the documentation in the student’s file. Condition: During our testing of 60 students, we found one student who received a subsidized direct loan; however, did not meet the requirements to receive the need-based aid. Cause: During the year, the College changed its system used in which to package aid; as a result of the new system and new process related to packaging aid, the process in place did not detect the incorrect awarding of federal direct loans. Effect: One student was disbursed subsidized direct loans of $2,422 that was not eligible to receive the subsidized direct loans. Questioned Costs: None reported. Context/Sampling: Nonstatistical sample of 60 participants out of 2,393 students who received financial aid during the year. Total direct loans tested were $60,536. Repeat Finding from Prior Year(s): No Recommendation: The College should have a control process in place to ensure students are eligible to receive the aid they are awarded at the time of awarding, especially need based aid. Views of Responsible Officials: Management agrees with the finding.