Audit 395329

FINDING 2025-001 – CONTROLS AND NONCOMPLIANCE OVER REPORTING – PELL COMMON ORIGINATION AND DISBURSEMENT; FISCAL OPERATIONS REPORT AND APPLICATION TO PARTICIPATE Federal Department: Department of Education Assistance Listing Number(s):84.063, 84.007, 84.033 Program Name(s): Student Financial Assistance Cluster Questioned Costs: None Criteria Per the requirements of the Uniform Guidance in the Compliance Supplement, when a recipient of Title IV funds received a Pell disbursement, the institution must submit the disbursement information to the Department of Education’s Common Origination and Disbursement (COD) site within 15 days. Additionally, per the requirements of the Uniform Guidance in the Compliance Supplement, the College is to complete the Fiscal Operations Report and Application to Participate (FISAP). Condition During our compliance testing we noted 12 out of 25 students selected for testing where the College submitted the Pell disbursement information to the COD site after the 15 day submission window. Additionally, we noted that the College was unable to provide support for amounts included in the FISAP. Questioned Costs None Context A sample of 25 students were selected for compliance testing. 12 students’ disbursement information was submitted between 106 and 114 days late. These were for students during the Summer and Fall semester, there were no late submissions noted for the Sping Semester. However, it was noted during our compliance testing that the disbursement information reported by the College to the U.S. Department of Education was accurate. Additionally, we noted that the College was unable to provide support for amounts included in the FISAP. Effect The College did not apply its established controls to ensure Pell COD information was remitted timely as well as properly reviewed and approved. We were also unable to complete FISAP testing due to lack of support for the amounts. Thus the College was not in compliance with the reporting requirements. Cause The cause appears to be due to turnover in the Student Financial Aid department. Identification as a Repeat Finding, if Applicable This matter is considered a repeat finding, and was reported previously as finding 2024-001. Recommendation We recommend that the College’s Student Financial Aid department consider additional steps to reinforce established policies and procedures regarding timely submission of the COD information. This may including automated reminders, updated calendars and other notification mechanisms in the College’s Colleague system to compliment manual controls to allow for more flexibility in remote working situations. We also recommend retaining documentation to support amounts within the FISAP. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.

FINDING 2025-002 – CONTROLS AND NONCOMPLIANCE OVER SPECIAL TESTS AND PROVISIONS – RETURN OF FUNDS Federal Department: Department of Education Assistance Listing Number(s): 84.063, 84.007, 84.033 Program Name(s): Student Financial Assistance Cluster Questioned Costs: $268 Criteria Federal regulations dictate 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 aid earned by the student as of the student’s withdrawal date. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs and no additional disbursements may be made to the student for the payment period or period of enrollment, per the provisions 34 CFR 668.22(a)(1) through (a)(5)). Condition During our compliance testing, we noted 1 out of the 7 students selected for testing had their total term days incorrectly calculated by the College. However, this student was not required to have aid returned. This was for the Summer 2024 semester; there were no incorrectly calculated days noted from our testing of Fall 2024 and Spring 2025 students. Additionally, we noted 1 student of 7 selected from the Fall 2024 semester testing did not have their aid of $268 returned. We additionally noted that review of the students’ worksheets was not properly documented. Questioned Costs None Context A sample of 7 students were selected for compliance testing. 1 student did not have their total term days calculated correctly and 1 student did not have their aid returned. Effect When the total term days are incorrectly calculated, there is a risk that the amount of funds required to be returned is incorrectly calculated. Additionally, lack of documented review of calculations could lead to incorrectly calculated days and unreturned aid. Cause The cause appears to be an error in the processing of the information, due to turnover in the Student Financial Aid department. Identification as a Repeat Finding, if Applicable This matter is considered a repeat finding, and was reported previously as finding 2024-003. Recommendation We are aware that the Student Financial Aid Department updates to its procedures term days calculations and return of funds determination. We recommend that the College continue these efforts to ensure future compliance with all applicable return of funds requirements. Views of Responsible Officials and Planned Corrective Actions See Corrective Action Plan.