Audit 388672

Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.063 (Federal Pell Grant Program) and 84.268 (Federal Direct Student Loans) – U.S. Department of Education (ED) Program Year 2024–2025 Criteria or Specific Requirement – Special Tests and Provision – Enrollment Reporting – 34 CFR §690.83 and 34 CFR §685.309 Condition – Eleven students had incorrect enrollment information reported, fourteen students had enrollment status and/or address changes that were not reported timely, and five students had both incorrect enrollment information reported and enrollment status and/or address changes that were not reported timely. Questioned Costs – N/A Context – Out of a population of 3,587 students with status changes during the Spring and Fall semesters of the 2025 aid year, 60 were selected for testing. Of the sixteen students with incorrect enrollment information reported, one had the incorrect CIP year reported, four had the incorrect program begin date reported, one had the incorrect program enrollment status reported, four had the incorrect program enrollment effective date reported, and six had two or more items reported incorrectly. Of the nineteen students with enrollment status and/or address changes that were not reported timely, fourteen had enrollment statuses not reported timely and five had address changes not reported timely. Our sample was not, and was not intended to be, statistically valid. Effect – The University reported inaccurate information or failed to report changes within the required time frame and, as such, ED was not provided accurate and timely information. Cause – The University did not have appropriate controls in place to ensure timely and accurate reporting. Identification as a Repeat Finding, if Applicable – 2024-001 Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding enrollment reporting to ensure that all status and address changes are reported timely and that all enrollment information is reported accurately. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding.

Federal Program – Student Financial Assistance Cluster – Assistance Listing Numbers 84.063 (Federal Pell Grant Program) and 84.268 (Federal Direct Student Loans) – U.S. Department of Education (ED) Program Year 2024-2025 Criteria or Specific Requirement – Reporting – 34 CFR §668.22 Condition – Three students’ disbursements were not returned to ED within 45 days of the University becoming aware that the students had withdrawn from courses. Questioned Costs – N/A Context – Out of a population of 367 students who completely withdrew from courses during the Spring and Fall semesters of the 2025 aid year and received a disbursement during the respective semester(s), 25 were selected for testing. Of those students, three had funds that were returned outside of 45 days from the date the University became aware of the withdrawal. Our sample was not, and was not intended to be, statistically valid. Effect – The University failed to return funds timely, and, as such, ED did not have access to funds. Cause – The University did not have appropriate controls in place to ensure timely return of funds. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should ensure the design and appropriate operating effectiveness of controls surrounding return of funds to ensure that all returns are made timely. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding.

Federal Programs - TRIO Program Cluster – Assistance Listing Numbers 84.042, 84.044, 84.047, 84.066, and 84.217 – U.S. Department of Education (ED) Program Year 2024–2025 - Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) – Assistance Listing Number 84.334 – ED Program Year 2024-2025 Criteria or Specific Requirement – Allowable Costs/Cost Principles – 2 CFR §200.414 Condition – For both programs, three transactions unallowed under the modified total direct cost (MTDC) definition for the program were inappropriately charged indirect cost during the fiscal year. Questioned Costs – TRIO Program Cluster, Assistance Listing Number 84.042A: $17.45 and Assistance Listing Number 84.047A: $11.70; GEAR UP (Assistance Listing Number 84.334): $17.57; based on indirect cost rate times charge Context – For both programs, 50 expenditure transactions were selected for testing. Of these transactions, indirect costs were inappropriately charged on three different costs that were unallowed under the MTDC definition for the program as stated in the Grant Award Notification. These transactions totaled $364.32 (TRIO Program Cluster) and $242.87 (GEAR UP) and were charged indirect cost at a rate of 8% for a total indirect cost of $29.15 and $17.57, respectively. Our sample was not, and was not intended to be, statistically valid. Effect – Unallowable indirect costs were charged to the program and, as such, ED provided excess funding to the University. Cause – The University’s system for tracking costs requires manual review and adjustment, and this review was not completed on a timely basis. This resulted in the charging of inappropriate indirect costs not being corrected during the fiscal year. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The University should ensure the review and adjustment of indirect costs are completed on a timely basis. Views of Responsible Officials and Planned Corrective Actions – Management agrees with the finding.