Audit 393679

2025 – 001: Material Prior Period Restatements – Correction of Errors Type of Finding: Material Weakness Criteria: Accounting Standards require that prior‑period financial statements be free from material misstatement and that errors be corrected through the restatement of beginning net assets when identified. Additionally, Government Auditing Standards (GAGAS) require auditors to report material weaknesses in internal control when deficiencies create a reasonable possibility that a material misstatement of the financial statements will not be prevented or detected in a timely manner. Condition: During our audit of the financial statements for the fiscal year ended July 31, 2025, material errors in previously issued financial statements were identified that required restatement. The restatements affected beginning net assets and corrected misstatements related to grants receivable, grant revenue, net asset without donor restrictions and net assets without donor restrictions. The cumulative effect of these corrections was material to the financial statements. Effect: As a result of the errors, previously issued financial statements were materially misstated. The University was required to restate beginning net assets by $8,267,823 and adjust multiple financial statement line items for the affected funds and activities. Cause: Inadequate controls over financial reporting resulted in material misstatements that required restatement of prior‑year financial statements. Recommendation: We recommend that management strengthen internal controls over financial reporting. Views of Responsible Officials: There is no disagreement with the audit finding.

2025 – 002: Special Tests and Provision: Verification Reporting Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.007 (Federal Supplemental Educational Opportunity Grants Program), 84.033 (Federal Work Study Program), 84.038 (Federal Perkins Loan Program), 84.063 (Federal Pell Grant Program), 84.268 (Federal Direct Student Loans Program), 93.364 (Nursing Student Loans) Federal Award Identification Number and Year: N/A; 2024-2025 Award Period: August 1, 2024 – July 31, 2025 Pass-Through Agency: N/A Pass-Through Numbers: N/A Criteria or Specific Requirement: Per 34 CFR 668.51–668.61, institutions must verify selected FAFSA information prior to disbursing Title IV aid. Required data elements must be reviewed and validated using acceptable documentation. Discrepancies must be corrected and resubmitted through CPS. Title IV funds may not be disbursed until verification is complete, unless permitted under de minimis tolerance rules. Other Matters. Condition: While performing audit procedures, it was noted that 1 student of our sample of five (5) required verification, but was not performed properly. Questioned Costs: None Context: 1 of 5 student files tested contained verification errors. Errors included improper documentation and incomplete review steps Cause: The condition occurred due to insufficient review controls over the verification process and inconsistent application of institutional verification procedures. Staff training and oversight related to federal verification requirements were not adequate. Effect: Failure to properly complete verification may result in incorrect eligibility determinations and improper disbursements of federal student aid. Repeat Finding: No Recommendation: We recommend that the Institution strengthen internal controls over verification, including implementing a secondary review of all verified files, enhancing staff training, and ensuring timely submission of all corrections. Views of Responsible Officials: There is no disagreement with the audit finding.