Audit 396825

Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Federal Award Identification Number and Year: Various Award Period: 7/1/24-6/30/25 Type of Finding: Material Weakness in Internal Control over Compliance, Material Noncompliance Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e) states, that whenever an institution disburses Title IV funds by crediting a student's account and the total amount of all Title IV funds credited exceeds the amount of tuition and fees, room and board, and other authorized charges the institution assessed the student, the institution must pay the resulting credit balance directly to the student or parent as soon as possible but— (1) No later than 14 days after the balance occurred if the credit balance occurred after the first day of class of a payment period; or (2) No later than 14 days after the first day of class of a payment period if the credit balance occurred on or before the first day of class of that payment period Condition: Twenty student credit balances were not refunded within the required 14-day time frame. Questioned Costs: N/A Context: During our testing, 20 students out of a sample of 40 had a credit balance as a result of receiving Title IV aid that was not returned within the required 14-day timeframe. Cause: Process and controls in place for ensuring timely return of credit balances were not functioning properly. Effect: The University did not refund a student within 14 days for a credit balance that arose from federal funds as required by Department of Education regulations. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures and review policies in overseeing student credit balances to ensure that any credit balances as a result of Title IV aid are returned within the required timeframe. Views of Responsible Officials: There is no disagreement with the audit finding and the College is in the process of implementing corrective procedures.

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268 Federal Award Identification Number and Year: Various Award Period: 7/1/24-6/30/25 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.203(a) outline the maximum subsidized loan amounts for students based on their dependency status, year of education, and other factors. Condition: One student was under awarded subsidized direct loan. Questioned Costs: $3,447 Context: During our testing, one student’s subsidized direct loan awarded and disbursed was less than the maximum amount they were eligible to receive. Cause: The College did not re-evaluate the student's account for additional loan eligibility after an adjustment to other aid was made. Effect: The student did not receive the maximum amount of eligible aid. Repeat Finding: No. Recommendation: We recommend the College evaluate its procedures around packaging and awarding students to ensure loan eligibility is reassessed prior to disbursement. Views of Responsible Officials: There is no disagreement with the audit finding and the College is in the process of implementing corrective procedures.

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268, 84.063 Federal Award Identification Number and Year: Various Award Period: 7/1/24-6/30/25 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: During our testing, we noted 3 students out of a sample of 9 students tested were reported outside the required timeframe. Cause: The College’s process in place for timely reporting and updating effective dates within the system were not functioning properly. Effect: Inaccurate reporting to NSLDS can impact when students enter repayment periods or affect their interest rates. Repeat Finding: No. Recommendation: We recommend the College evaluate its policies and procedures around reporting student status changes to NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Views of responsible officials: There is no disagreement with the audit finding.