Audit 389454

FY End
2025-06-30
Total Expended
$324.38M
Findings
19
Programs
21
Organization: National University (CA)
Year: 2025 Accepted: 2026-02-26

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1175614 2025-001 Material Weakness Yes N
1175615 2025-001 Material Weakness Yes N
1175616 2025-001 Material Weakness Yes N
1175617 2025-001 Material Weakness Yes N
1175618 2025-001 Material Weakness Yes N
1175619 2025-001 Material Weakness Yes N
1175620 2025-002 Material Weakness Yes N
1175621 2025-002 Material Weakness Yes N
1175622 2025-002 Material Weakness Yes N
1175623 2025-002 Material Weakness Yes N
1175624 2025-002 Material Weakness Yes N
1175625 2025-002 Material Weakness Yes N
1175626 2025-003 Material Weakness Yes N
1175627 2025-004 Material Weakness Yes L
1175628 2025-004 Material Weakness Yes L
1175629 2025-004 Material Weakness Yes L
1175630 2025-004 Material Weakness Yes L
1175631 2025-004 Material Weakness Yes L
1175632 2025-004 Material Weakness Yes L

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $283.30M Yes 3
84.063 FEDERAL PELL GRANT PROGRAM $30.73M Yes 3
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $2.36M Yes 3
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $1.77M Yes 0
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $1.76M Yes 0
93.359 NURSE EDUCATION, PRACTICE QUALITY AND RETENTION GRANTS $933,273 Yes 0
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $644,976 Yes 0
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $634,983 Yes 0
84.031 HIGHER EDUCATION INSTITUTIONAL AID $601,757 Yes 0
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $424,057 Yes 3
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $321,590 Yes 3
84.033 FEDERAL WORK-STUDY PROGRAM $256,650 Yes 4
84.428 AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE—TEACHER PREPARATION AND DEVELOPMENT $180,036 Yes 0
93.124 NURSE ANESTHETIST TRAINEESHIP $131,942 Yes 0
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $108,735 Yes 0
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $87,646 Yes 0
64.058 VETERAN AND SPOUSE TRANSITIONAL ASSISTANCE GRANT PROGRAM (VSTAGP) $80,808 Yes 0
12.902 INFORMATION SECURITY GRANTS $10,424 Yes 0
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $6,859 Yes 0
12.903 GENCYBER GRANTS PROGRAM $875 Yes 0
84.425 EDUCATION STABILIZATION FUND $-4,005 Yes 0

Contacts

Name Title Type
VERGS9RU9J56 Michelle Bello Auditee
8586428636 Brenda Scherer Auditor
No contacts on file

Notes to SEFA

The purpose of the schedule of expenditures of federal awards (the Schedule) is to present a summary of those activities of the University that have been financed by the United States government (federal awards). Federal awards received directly from federal agencies are included in the Schedule, as are federal guaranteed loans disbursed by other sources. Additionally, all federal awards passed through from other entities have been included in the Schedule. The University is required to match certain grant agreements, as defined in the grants, and these matching amounts are not included in the Schedule. The information in the Schedule is presented in accordance with requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to, and does not, present the consolidated financial position, changes in net assets, or cash flows of the University.
The University had Federal Perkins Loans with continuing compliance requirements of $321,590 outstanding at June 30, 2024. During the fiscal year 2025, no new loans were made, resulting in total expenditures of federal awards for Perkins Loans of $321,590 for the year ended June 30, 2025. After considering loan receipts, cancelations, and assignments, respectively, the balance outstanding was $234,387 at June 30, 2025.
The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34 CFR 668.23: • Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) • Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) • Placement rates for short-term programs under https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.8 34 CFR 668.8(e)(2)

Finding Details

Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Federal Award Identification Number and Year: Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: In accordance with 34 CFR 668.22(a)(1), when a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance that the student earned as of the student’s withdrawal date. An institution must also return the amount of title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew in accordance with 34 CFR 668.22(j). Condition: During our testing, we noted that for 5 out of 60 students, a R2T4 calculation wasn’t completed when a calculation should have been performed. In addition, we noted that 4 out of 60 students did not have their R2T4 funds returned within 45 days of the school determining that the student withdrew. Questioned Costs: None over $25,000 Context: During our testing, we noted that although the University had procedures in place to verify that all students who qualify for R2T4 calculations have calculations performed and that Title IV funds are returned timely, those procedures were not always effective and resulted in errors. Cause: The University's processes and controls did not ensure that R2T4 calculations were properly performed accurately and that Title IV funds were returned timely. Effect: Title IV funds were not returned properly and timely to the federal government. Repeat Finding: Yes. 2024-001 Recommendation: We recommend the University review the R2T4 requirements and implement adequate procedures to make sure that students that withdrew have a calculation performed. We also recommend the University to evaluate the R2T4 review process to ensure Title IV funds are returned timely. Views of Responsible Official: There is no disagreement with the audit finding.
Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. In addition, a school must report student enrollment at least every 60 days. Condition: During our testing of 60 students, we noted 33 instances where the students status wasn’t reported at least every 60 days and 5 instances where the change of status wasn’t reported timely. Questioned Costs: None Context: In October 2024, the University was notified by NSC that their access to process enrollment reporting to NSC was revoked during July 2024. This issue was resolved in October 2024, however, errors were still identified due to the reporting gap. Cause: The revocation of NSC access in July 2024 created a reporting gap, during which enrollment updates were not submitted timely. Effect: The University did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely Repeat Finding: Yes. 2024-002. Recommendation: We recommend the University establish and implement a contingency process to ensure enrollment reporting continues during system access disruptions. This process should include monitoring NSC access status and developing alternative procedures to prevent reporting gaps, ensuring that all student statuses are submitted accurately and within the required 60-day timeframe. Views of Responsible Official: There is no disagreement with the audit finding.
Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: 84.033 – Federal Work Study Program Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 675.18(g) require institutions to use at least seven percent of the sum of its initial and supplemental Federal Work Study allocation for an award year to compensate students employed in community service activities and must include at least one reading tutor unless a waiver is obtained from the Department of Education. Condition: It was noted during audit testing that the University did not meet the community service requirement for its Federal Work Study allocation and didn’t obtain a waiver from the Department of Education releasing it from the requirement. Questioned Costs: None Context: We noted the University did not obtain a waiver for the community service requirement and employment of a reading tutor nor did they employ students as a ready tutor or in community service jobs. Cause: Management did not receive a waiver from the Department of Education to waive this requirement. Effect: The Department of Education could reduce or eliminate the University’s Work Study award. Repeat Finding: No. Recommendation: We recommend that the University establish procedures to ensure that at least 7% of Federal Work Study allocation is used for community service jobs, including a reading tutor, or successfully receive a waiver. Views of Responsible Officials: There is no disagreement with the audit finding.
Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 674.19, 34 CFR 675.19, 34 CFR 676.19 and 20 U.S.C. 1094 require institutions to accurately report information to the Department of Education via the FISAP. Condition: Audit testing identified that tuition and fees reported on the FISAP were understated by $107,109. The University had until December 15, 2025 to submit a corrected FISAP, and the updated report reflecting the accurate tuition and fees was submitted on December 12, 2025. Questioned Costs: None Context: We noted the University understated the tuition and fees on the FISAP. Cause: A portion of the fees were inadvertently omitted from the tuition and fees reported on the FISAP. Effect: The FISAP is not accurately stated Repeat Finding: No. Recommendation: We recommend that the University establish procedures to ensure that FISAP is accurately presented. Views of Responsible Officials: There is no disagreement with the audit finding.