Audit 394160

Finding 2025-004 (continuing finding): Policies and Procedures Related to Withdrawals – SFA Cluster (significant deficiency) Statement of Condition: From our testing sample of ten (10) students, we found nine (9) instances where changes in student status due to withdrawal were not reported timely or were not reported at all as of our testing date. We also noted from our testing that of our sample of ten (10) students, three (3) Pell adjustments that were not reported timely. We also found one (1) instance where the Title IV funds were not returned timely. Criteria: In accordance with 34 CFR 668.22, Treatment of Title IV Funds When a Student Withdrawals, any changes to a student’s enrollment status are required to be reported within thirty (30) days, or within sixty (60) days if a roster file is expected within that time frame. Institutions must report Pell grant disbursement adjustments within 15 calendar days after the institution becomes aware of the need for an adjustment. Also, in accordance with 34 CFR 668.22, Treatment of Title IV Fund When a Student Withdrawals, all students who withdraw and receive Title IV funds should be identified so that return calculations can be performed and any refunds can be made within forty-five (45) days after the date of the school’s determination that the student has withdrawn. Effect of Condition: We found nine (9) instances where changes in student status was not reported timely. We found three (3) instances where adjustments to Pell were not reported timely. We also found one (1) instance where the Title IV funds were not returned timely. Cause of Condition: The College does not consistently follow its policies and procedures related to withdrawals. Recommendation: We recommend the College follow its policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement this recommendation immediately.

Finding 2025-005 (continuing finding): Policies and Procedures Related to Packaging Student Financial Aid (significant deficiency) Statement of Condition: From our testing sample of twenty-five (25) students, we found twenty-two (23) instances where notices of federal direct loans being credited to a student’s account could not be vouched. We also noted that from our same sample of twenty-five (25) students, we found three (3) students who were transfer students and incorrectly packaged as freshman, rather than their appropriate grade levels based on transfer credits previously earned. Criteria: In accordance with Volume 4 Chapter 2 of the Federal Student Aid Handbook, the school must notify the borrower in writing within 30 days of funds being credited to the account: 1) the anticipated date and amount of disbursement, 2) the right to cancel, and 3) the deadlines to notify the school if they wish to cancel. In accordance with Volume 2 Chapter 7 of the Federal Student Aid Handbook, a school must keep comprehensive, accurate program and fiscal records related to its use of FSA Funds. Student records should be retained to “show a clear audit trail for FSA program expenditures.” This includes maintaining documentation that required notifications were provided to students. Federal student aid must be awarded and disbursed based on each student’s correct grade level and academic progression so that the annual and aggregate loan limits and other eligibility determinations are accurate. Effect of Condition: We found twenty-three (23) instances where borrower notifications were not retained. We also found three (3) instances where transfer students were incorrectly packaged at a lower grade level. Cause of Condition: The College implemented a new system student information system in the prior year, which does not have configurations to capture and retain evidence of required borrower notifications. Additionally, the College did not have a formal review process to verify that transfer students’ grade levels and academic progression were accurately reflected in the system before packaging aid. Recommendation: We recommend the College develop policies and procedures to address these issues. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.

Finding 2025-006: Policies and Procedures Related to Reporting (significant deficiency) Statement of Condition: During our testing of the College’s Fiscal Operations Report and Application to Participate (FISAP), we noted that total expenditures reported on the FISAP for certain Title IV programs did not agree to the related current year drawdowns per the U.S. Department of Education’s G5 system or total actual expenditures for the fiscal year. Differences were identified for the Federal Pell Grant, FSEOG, and Federal Work-Study programs. Criteria: In accordance with the FISAP instructions, depending on the program, total expenditures reported for applicable Title IV programs should agree to the current year drawdowns recorded in the G5 system or total actual expenditures for the program. Effect of the Condition: We found three Title IV programs where the total expenditures reported in the FISAP did not agree to the U.S. Department of Education’s G5 system or actual total expenditures. Accurate reporting is important as the FISAP data drives campus-based allocations and is used by the Department of Education for oversight. Cause of Condition: The College does not have a formal reconciliation and review process for the FISAP. Recommendation: We recommend the College develop reconciliation policies and procedures to address this issue. Management’s Response: Management agrees and will submit a Corrective Action Plan to implement these recommendations immediately.