Audit 395330

2025 – 001 – Pell Grant Under Award Federal Agency: U.S. 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 690.62 states the Pell grant for an academic year is based upon the payment and disbursement scheduled published by the Secretary for each award year. The payment schedules take into account the cost of attendance, the student’s SAI and the enrollment status of the student. Condition: During our testing, we noted for 1 out of 40 students tested, they were under-awarded Pell due to an incorrect enrollment intensity during the award packaging process. Questioned Costs: $90 Context: Pell Grant awards are determined based on federal eligibility criteria and must be accurately packaged to ensure students receive the correct amount of aid. Manual errors in the packaging process can lead to under-awards or over-awards, resulting in noncompliance with U.S. Department of Education regulations and potential financial impact for students and the institution. Cause: Management incorrectly calculated the student's Pell award due to using an enrollment intensity less than the student's actual enrollment. Effect or Potential Effect of Finding: Students were under-awarded Pell funds. Repeat Finding: No. Recommendation: We recommend the University implement a review process that compares enrolled credits to Pell awards to ensure all students receive the correct Pell Grant amounts. Views of Responsible Official: There is no disagreement with the audit finding.

2025 – 002 – National Student Loan Data System (NSLDS) Enrollment Reporting Federal Agency: U.S. Department of Education Federal Program Title: 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 682.610, states that institutions must report accurately the enrollment status of all students regardless of whether they receive aid from the institution. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Condition: Of the 40 students selected for testing, 2 students had errors in enrollment status; 6 students had errors in their enrollment effective date, and 5 students enrollment data was not certified at least every 60 days as required. Questioned Costs: None Context: During our testing, we noted the University did not have proper procedures in place to verify the reports sent to NSLDS are timely and accurate. Cause: The University processes and controls did not ensure that student status changes were properly reported to NSLDS. The effective date should reflect the student's last date of attendance and academically related activity. In addition, students’ enrollment status should be certified every 60 days, and the program begin date should be the first day attended at the University. Effect or Potential Effect of Finding: The NSLDS system is not updated with the correct student information, which can cause a student to not properly enter the repayment period. Repeat Finding: No. Recommendation: We recommend the University review and strengthen its reporting procedures to ensure that student statuses are accurately reported to NSLDS, as required by federal regulations. Views of Responsible Officials: There is no disagreement with the audit finding.

2025 – 003 – Documentation of Review Federal Agency: U.S. 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 2 CFR Section 200.303 require that nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal Statues, regulations, and the term and conditions of the federal awards. Condition: During our testing of Return of Title IV Funds (R2T4), student federal award packaging, and review of the FISAP, we noted there was a review process implemented; however, there was no process in place to retain the review being performed as to provide evidence to ensure the controls are being performed effectively. Questioned Costs: N/A Context: During our testing, it was noted the University does not have a process in place to ensure controls are being performed effectively. Cause: The University did not have a process in place to ensure controls implemented are being performed effectively. Effect or Potential Effect of Finding: There is no way to determine who was involved in the process should an error be present. Repeat Finding: No. Recommendation: We recommend the University reevaluate its procedures and review policies surrounding controls implemented for Title IV Aid. Views of Responsible Official: There is no disagreement with the audit finding.