Audit 391727

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not initially appropriately awarded federal loans based on need, eligibility, and enrollment level. Criteria: 34 CFR 685.203, 34 CFR 685.301(a)(4)(ii) Questioned Costs: $6,722 Context: Out of 43 students tested, 6 students were not awarded loans appropriately based on need analysis. One student was over awarded $1,000 in subsidized loans based on enrollment level, another exceeded their aggregate loan limits for subsidized loans by $1,312, and the last exceeded their cost of attendance by $4,410 with the awarding of an unsubsidized loan. There were also three students who were under awarded a combined total of $3,000 in subsidized loans and $2,000 in unsubsidized loans as they were under awarded based on their enrollment level. Cause: For students that were under/over awarded based on enrollment level, it was due to the new student information system that was implemented and automated during fiscal year 2024-2025. The triggers that alert the College’s Financial Aid Office to reassess loan awards following updates by the Registrar’s Office to students’ earned credit hours were not initially activated. These triggers are now enabled, and notifications are being appropriately received. The other students were oversights by the College. Effect: Students received federal loans for which they were not eligible, and students were not awarded federal loans according to eligibility. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that the College continue to complete spot checks to ensure that proper notifications are enabled in the student information system, and that the student award package be reviewed before releasing it for acceptance by the student. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Late Return of Title IV Funds Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants, Federal Direct Student Loans 84.268 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $565 Context: Out of 10 students, 2 students who withdrew during the audit period tested had funds returned late. One student had funds returned timely as part of the R2T4 on the student ledger, however was not updated in the Common Origination and Disbursement (COD) and the Grant Management (G5) websites until the audit, resulting in $565 returned late. The other student had $4,503 in unsubsidized loans returned 15 days past the required timeframe. Cause: This was an oversight by the College. Effect: Returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: 2024-001 Recommendation: We recommend that the financial aid office work closely with their third-party administrator and student accounts office to ensure that funds required to be returned as part of the R2T4 process are being processed timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants, 84.268 Federal Direct Student Loans Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 77 students tested for proper NSLDS enrollment status, 2 students had not been reported to NSLDS and were updated as part of the audit. Cause: There was a connectivity issue identified within the student information system (SIS) which prevented the student’s NSLDS enrollment from updating, even though the enrollment appeared to be updated in the SIS. The issue has been resolved, and steps have been taken to ensure it does not occur again in the future. Effect: Inaccurate reporting can impact a student's loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2024-002 Recommendation: We recommend that the College complete spot checks of NSLDS enrollment statuses throughout the year to ensure the SIS flags are operating effectively. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.