Student Status Confirmation Report Federal Program and Specific Federal Award Identification CFDA Title and Number 84.268 Federal Direct Student Loan (Direct) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Title IV Regulations, 34 CFR Section 682.610 (c) (i) (ii) (iii) stipulated that if a university discovers that a loan has been made to or on behalf of a student who enrolled at that school, but who has ceased to be enrolled on at least a half-time basis; a student who has been accepted for enrollment at that school, but who failed to enroll on at least a half-time basis for the period for which the loan was intended, or a full-time student who has ceased to be enrolled on a full-time basis, the University must notify the guarantee agency. Conditions and Context The University did not provide the required reports to support audit testing of student enrollment status in a timely manner. Consequently, I was unable to perform procedures to determine whether enrollment statuses were reported accurately on the student status confirmation reports. Cause The University did not have adequate processes or controls in place to ensure that requested reports were generated and provided for audit purposes in a timely manner. It appears that the University did not properly report the student’s enrollment status to the guarantee agency. Questioned Costs For purposes of the condition, I do not have any questioned costs. Effect Potential noncompliance with federal regulations. Due to the lack of supporting documentation, I was unable to verify the accuracy of student enrollment status reporting, which may result in undetected errors or noncompliance with applicable requirements. Repeat Finding Yes. 2024-002. Recommendation The University should implement procedures and controls to ensure that all required reports and supporting documentation are maintained and readily available for audit and compliance purposes. Management should also establish a process to review and verify the completeness and accuracy of such reports prior to submission or audit. Management Response The University acknowledges the finding regarding the timeliness of providing required reports to support audit testing of student enrollment status. We recognize the importance of accurate and timely reporting to the student status confirmation process and regret that the requested documentation was not supplied within the audit timeframe. Corrective Actions Taken / Planned 1. Process Redesign and Timeliness Controls The University has implemented revised internal procedures to ensure that all requested enrollment reports are generated promptly. This includes establishing defined timelines for responding to audit requests and assigning responsibility to specific staff members to track and manage reporting obligations. 2. System and Reporting Enhancements We are reviewing and updating our reporting workflow within our student information system to strengthen data retrieval capabilities and reduce delays in report generation. Additional user training will be provided to ensure staff can efficiently extract the required information. 3. Improved Communication With the Guaranty Agency The University will review past enrollment status submissions and implement additional checks to ensure that future enrollment reporting to the guaranty agency is complete, accurate, and timely. A 45-day reconciliation process has been added to verify that all required status updates have been transmitted. 4. Ongoing Monitoring The University has established ongoing oversight to ensure consistent compliance with reporting requirements. Internal reviews will be performed periodically to confirm that corrective actions remain effective. Management Conclusion We believe these measures will address the root causes identified in the finding and will ensure the timely delivery of required information for future audits. The University is committed to maintaining full compliance with federal and state reporting standards.
Annual and Aggregate Loan Limits Federal Program and Specific Federal Award Identification CFDA Title and Number 84.268 Federal Direct Student Loan (Direct) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Title IV regulations, 34 CFR 685.203 (b) stipulates that a dependent student may receive an additional unsubsidized loan in the amount of $2,000. Students whose parents are likely to be precluded by exceptional circumstances from receiving a PLUS loan may be eligible for an unsubsidized loan beyond the base amount of $2,000. The total amount of Direct unsubsidized loans but excluding the amount of capitalized interest may not exceed (1) for a dependent undergraduate student, $23,000, or, effective July 1, 2008, $31,000, minus any Direct subsidized loan, and (2) for an independent undergraduate or a dependent undergraduate who qualifies for additional eligibility, $57,500, minus any Direct subsidized loan. Conditions and Context I noted during my audit one (1) student out of twenty-five (25) tested received $5,000 in unsubsidized loans in excess of the annual loan limit of $2,000, without a PLUS loan denial on file. The University used professional judgment to justify the additional unsubsidized loan. The supporting documentation for the professional judgment was not provided for audit review. Cause The University did not maintain or provide sufficient documentation to support the use of professional judgment in awarding unsubsidized loan funds in excess of standard limits. It appears that the University did not ensure that the student was eligible to receive the loan proceeds. Questioned Costs For the purposes of this condition, I have questioned costs totaling $5,000 related to the Direct loan program. Effect Without proper documentation, there is no assurance that the additional unsubsidized loan amount was awarded in compliance with federal regulations, which may result in noncompliance and potential liabilities. The University has not adhered to Title IV regulations regarding the disbursing of loan funds in accordance with the regulations. Repeat Finding Yes. See 2024-003. Recommendation The University should ensure that all professional judgment decisions are fully documented, including the rationale and supporting evidence, and retained in the student’s file. Additionally, controls should be strengthened to verify that required documentation (such as PLUS loan denials or professional judgment justification) is obtained and reviewed prior to disbursing funds in excess of standard loan limits. Management’s Response The University acknowledges the finding regarding the awarding of unsubsidized loan funds in excess of annual limits without adequate supporting documentation. We recognize that federal regulations require either a valid PLUS denial or fully documented professional judgment to support additional unsubsidized eligibility. Corrective Actions 1. Strengthened Documentation Requirements: Effective immediately, financial aid staff will maintain complete professional judgment documentation, including the rationale, supporting evidence, and approval, in the student’s file before any additional unsubsidized loan is awarded. 2. Verification Controls: A mandatory checklist has been implemented to ensure that a PLUS denial or documented professional judgment is obtained and reviewed prior to disbursement of any loan amount exceeding standard limits. 3. Staff Training: The Office of Financial Aid will conduct targeted training to reinforce Title IV loan limit rules and proper documentation standards. 4. Ongoing Monitoring: Supervisory review will be performed on all professional judgment decisions and on any loan increases exceeding the standard $2,000 annual limit. The University believes these corrective measures will address the root cause of the finding and ensure full compliance with federal loan regulations going forward.
Fiscal Operations Report and Application to Participante (FISAP) Federal Program and Specific Federal Award Identification CFDA Title and Number 84.033 Federal Work Study Program (FWS) 84.038 Federal Perkins Loan Program Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria OMB 2 CFR 200, Subpart F Compliance Supplement Part 5, Appendix A, Student Financial Assistance – Reporting Compliance Requirement, Special Reporting Section (L) (3) indicates that the University should submit its FISAP report containing critical information. The Compliance Supplement requires the auditor to examine financial reports to provide reasonable assurance that the reports of Federal awards submitted to the Federal awarding agency or pass-through entity include all activity of the reporting period, be supported by underlying accounting or performance records, and are fairly presented in accordance with program requirements. Conditions and Context The University did not provide the supporting documentation for the FISAP for the audit year. As a result, audit procedures could not be performed to verify the accuracy and completeness of the reported information. In addition, the report was not filed by the prescribed deadline of October 1, 2025. Cause Changes in the University’s staffing prevented key personnel from completing the FISAP reporting timely to ensure the supporting documentation for the FISAP was retained and made available for audit. Questioned Costs For the purpose of this finding, I have not questioned any costs. Effect Due to the lack of supporting documentation, there is no assurance that the information reported on the FISAP is accurate and complete, which may result in noncompliance with federal reporting requirements. Repeat Finding Yes. See 2024-004. Recommendation The University should implement procedures to ensure that all FISAP data is fully supported by appropriate documentation and that such documentation is retained and readily available for audit. Management should also establish a review process to verify the accuracy, completeness, and timely submission of the FISAP prior to submission. Management’s Response The University acknowledges the finding related to the FISAP report. During the reporting period, newly hired Financial Aid staff had limited access to required U.S. Department of Education systems. Because these employees had not yet been fully authorized by the Department of Education, they were unable to enter FISAP data or view the system-generated error notifications that are normally used to validate and finalize the report. This contributed to delays in completing the FISAP and in maintaining the supporting documentation needed for audit review. Corrective Actions 1. Resolution of System Access Issues: The University is working with the Department of Education to ensure all relevant staff will soon have full and active system credentials, allowing timely FISAP data entry and error review. 2. Strengthened Reporting Procedures: Internal processes have been updated to ensure supporting documentation for the FISAP is compiled, retained, and stored in a centralized digital repository. 3. Staffing and Oversight Improvements: Responsibilities for FISAP preparation have been reassigned and supplemented with supervisory review to prevent delays during staffing transitions or access lapses. 4. Accounting Entries: The accounting office will continue to update the general ledger to agree with the activities generated from the ECSI report and be prepared to provide the relevant data to the auditors upon request. 5. Earlier Internal Deadlines: The University has established internal timelines ahead of the federal deadline to allow adequate time for review, corrections, and document retention. The University believes these measures will prevent future access related delays and ensure timely, accurate, and fully documented FISAP submissions in compliance with federal requirements.
PELL Grant Calculations Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal PELL Grant Program (PELL) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Title IV regulations, 34 CFR Section 690.62 (a) stipulates that the amount of a student’s PELL Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each year. Each student’s PELL grant is based upon their enrollment status, cost of attendance and expected family contribution. Conditions and Contexts During my audit I noted five (5) students out of twenty-five (25) tested whose Summer 2025 PELL grant amount was calculated incorrectly. This resulted in the University under-disbursing PELL in the amount of $4,077. Cause The errors appear to be due to inadequate review controls over PELL Grant calculations and/or incorrect application of awarding formulas. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Students did not receive the full amount of PELL Grant funds for which they were eligible, resulting in underpayments totaling $4,077 and potential noncompliance with federal requirements. Repeat Finding No. Recommendation The University should strengthen controls over PELL Grant calculations, including implementing a review process to ensure accuracy prior to disbursement. Additionally, the University should identify and correct all affected student accounts and disburse any additional funds owed. Management should also consider performing a broader review to determine if similar errors occurred outside the sample. Management’s Response The University acknowledges the finding regarding errors in Pell Grant calculations for Summer 2025. We acknowledge the importance of ensuring that Pell Grant awards are calculated accurately in accordance with federal regulations. Corrective Actions 1. Immediate Corrections: The University has reviewed the affected student accounts and has processed the remaining Pell funds owed to each student. 2. Strengthened Review Controls: A secondary review process has been implemented to verify Pell Grant calculations prior to disbursement, including confirmation of enrollment status, cost of attendance, and formula application. 3. Staff Training: Financial Aid staff are receiving additional training on Pell awarding requirements and payment schedule usage to ensure the correct application of formulas. 4. Broader File Review: The University is conducting a wider review of Pell disbursements outside the audit sample to identify and correct any similar errors. The University believes these actions will prevent future calculation errors and ensure ongoing compliance with federal regulations.
Return of Title IV Funds Calculations Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal PELL Grant Program (PELL) 84.268 Federal Direct Student Loan (Direct) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria OMB 2 CFR 200, Subpart F Compliance Supplement, Part 5 Section (N) (3) specifies that when a student receives Title IV assistance and withdraws from an institution, the institution must determine the amount of Title IV aid earned by the student as of the withdrawal date. The difference between any amounts earned that is less than the amount disbursed must be returned to the Title IV program within the prescribed time frame. The University is a college that is not required to take attendance. Thus, the University must determine the student’s withdrawal date as either (1) the date, as determined by the institution, that the student began the withdrawal process prescribed by the institution; (2) the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw; (3) if the student ceases attendance without providing official notification to the institution of his or her withdrawal, the midpoint of the payment period or, if applicable, the period of enrollment; (4) if the institution determines that a student did not begin the withdrawal process or otherwise notify the institution of the intent to withdraw due to illness, accident, grievous personal loss or other circumstances beyond the student’s control, the date the institution determines is related to that circumstances, (5) if a student does not return from an approved leave of absence, the date that the institution determines the student began the leave of absence; or (6) if the student takes an unapproved leave of absence, the date that the student began the leave of absence. Conditions and Contexts During my audit, I noted the following: • One (1) student withdrew from the University and may have received Title IV funds; however, the University was unable to verify whether Title IV aid was disbursed. As a result, it could not be determined whether a Return of Title IV Funds calculation was required; • For one (1) student out of five (5) students tested, the University was unable to provide documentation supporting the student’s withdrawal date; • All the Return of Title IV Funds calculations reviewed for the Spring 2025 semester were prepared incorrectly. Specifically, the total number of days in the payment period was inaccurate, and the institutional charges were not included in the calculation. As a result, the calculations reflected $-0- in funds to be returned when $18,016 should have been returned; and • The University did not provide the necessary reports to test the students who received all non-passing grades to verify that documentation supporting the last date of attendance or academically related activity was maintained. Cause The University lacked effective controls over the Return of Title IV Funds process, including preparation, review, and documentation of calculations, as well as retention and availability of supporting records. Questioned Cost For purposes of this condition, I have questioned costs totaling $18,016 as follows: Program Amount Federal PELL Grant $ 2,515 Federal Direct Loan 15,501 Total $18,016 Effect As a result of these deficiencies, the University may have failed to return the required Title IV funds in a timely and accurate manner, resulting in an identified under-return of $18,016 and potential additional unquantified errors. Additionally, the lack of documentation limits assurance over compliance with federal requirements. Repeat Finding No. Recommendation The University should strengthen internal controls over the Return of Title IV Funds process by ensuring: Accurate and complete preparation of R2T4 calculations, including correct payment period dates and inclusion of institutional charges; • Independent review of calculations prior to finalization; • Proper identification of students who require R2T4 calculations; • Adequate documentation of withdrawal dates and last dates of attendance, including for students with non-passing grades; and • Retention and availability of all supporting documentation for audit and compliance purposes. Management should also recalculate affected student accounts, return any additional funds due, and consider performing a comprehensive review to identify other potential errors. Management’s Response The University acknowledges the finding related to errors and missing documentation in the Return of Title IV Funds (R2T4) process. We recognize the importance of accurate withdrawal date determination, proper calculation of earned versus unearned aid, and timely retention of supporting documentation in accordance with federal requirements. Corrective Actions 1. Immediate Corrections and Reconciliation: The University has reviewed the identified cases and will recalculate the R2T4 amounts where required and process the return of the $18,016 owed to the U.S. Department of Education. Additional reviews are underway to identify any other students who may have been affected. 2. Strengthened Documentation and Record Retention: Procedures have been updated to ensure that withdrawal dates, last dates of attendance, and all supporting documentation are retained and readily available for audit and compliance review. 3. Revised R2T4 Calculation and Review Process: A standardized calculation template and checklist have been implemented to ensure consistency in determining payment period days, institutional charges, and earned aid. All R2T4 calculations will undergo a secondary review prior to processing. 4. Improved Coordination Between Offices: The University has enhanced communication procedures between Financial Aid, the Registrar, and Student Accounts to ensure timely access to enrollment, grade, and withdrawal information necessary for accurate R2T4 processing. 5. Staff Training and Compliance Oversight: Financial Aid staff have received updated training on R2T4 regulatory requirements, documentation standards, and calculation procedures. Periodic internal monitoring will be conducted to validate continued compliance. The University believes these corrective actions will address the root causes identified and strengthen overall compliance with federal R2T4 regulations going forward.
Allowable Costs/Period of Performance Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria In accordance with Uniform Guidance §§ 200.403 and 200.309, costs charged to federal awards must be allowable, properly supported, and incurred during the approved period of performance. Adequate documentation must be maintained to support all expenditures. Conditions and Contexts During my testing, I noted the following: • Out of twenty-five (25) transactions tested, twelve (12) transactions included costs incurred outside the period of performance (before and/or after the fiscal year under audit); and • One (1) of twenty-five (25) transactions selected for testing, supporting documentation was not provided for audit review. Cause The University lacked effective controls to ensure that costs were incurred within the appropriate period of performance and that supporting documentation was retained and made available for audit. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Costs may have been improperly charged to the federal program and may be unallowable. Additionally, the lack of supporting documentation limits the ability to determine the allowability and accuracy of expenditures. Repeat Finding No. Recommendation The University should strengthen controls to ensure that only costs incurred within the approved period of performance are charged to federal awards. Additionally, procedures should be implemented to ensure that all expenditures are supported by adequate documentation and are readily available for audit. Management’s Response The University acknowledges the finding related to expenditures recorded outside the approved period of performance and the missing supporting documentation for one transaction. We recognize that all federally funded costs must be both allowable and incurred within the designated performance period, and that proper documentation must be retained for audit purposes. Corrective Actions 1. Improved Period-of-Performance Verification: The University has strengthened its review procedures to ensure all expenses are confirmed as occurring within the applicable grant period before being charged the award. Both grants management and accounting staff now verify dates prior to posting. 2. Enhanced Documentation Requirements: A shared electronic repository is being used to ensure all supporting documents are uploaded and retained before any expenditure is approved. Transactions submitted without documentation are now automatically rejected. 3. Staff Training: Relevant staff have received targeted training on allowable-cost rules, documentation standards, and period-of-performance requirements under Uniform Guidance. 4. Ongoing Monitoring: Periodic internal reviews will be conducted to verify continued compliance and ensure that all costs charged to federal awards are timely, appropriate, and fully supported, and charged within the required time periods. The University believes these actions address the issues noted and will strengthen internal controls over federal expenditures moving forward.
Cash Management Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Pursuant to Uniform Guidance § 200.305, institutions must maintain documentation supporting cash drawdowns and ensure that federal funds are drawn only for immediate cash needs and are supported by underlying expenditures. Conditions and Contexts During my testing, I noted twenty-five (25) transactions out of twenty-five (25) tested in which the University did not provide documentation to support the related drawdown requests. Cause The University did not maintain or provide adequate documentation to support drawdown activity. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Without supporting documentation, there is no assurance that drawdowns were made in accordance with federal requirements, increasing the risk of excess cash on hand or unsupported use of federal funds. Repeat Finding No. Recommendation The University should implement procedures to ensure that all drawdowns are properly supported by detailed expenditure records and that documentation is retained and available for audit. Management should also perform periodic reviews of drawdown activity for compliance. Management’s Response The University acknowledges the finding related to missing documentation supporting cash drawdowns for the Higher Education Institutional Aid program. We recognize that federal regulations require all drawdown requests to be supported by underlying expenditures and appropriate supporting records. Corrective Actions 1. Implementation of Required Documentation Procedures The University has established a formal process requiring that all drawdown requests be supported by detailed expenditure reports before funds are drawn. Supporting documentation must be uploaded and retained in a shared electronic repository. 2. Enhanced Review and Approval Controls: Drawdown requests must now undergo a two step review process by Grants Management and the Controller’s Office to ensure compliance with cash management requirements prior to submission. 3. Staff Training: Relevant staff is updating training on Uniform Guidance §200.305 requirements and on maintaining complete documentation to support each drawdown. 4. Ongoing Monitoring: Periodic internal reviews will be conducted to confirm that all future drawdowns are documented, properly supported, and compliant with federal cash management standards. The University believes these actions will strengthen internal controls over cash drawdowns and ensure compliance with federal regulations moving forward.
Payroll Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria In accordance with Uniform Guidance § 200.430, charges to federal awards for salaries and wages must be based on records that accurately reflect the work performed and must be supported by a system of internal controls, including alignment with personnel documentation. Conditions and Contexts Out of twenty-five (25) payroll transactions tested: • Five (5) salary amounts, as calculated per labor distribution reports, did not agree to the approved personnel action forms; and • Two (2) time and effort report percentages did not agree to the percentages reflected on the personnel action forms. Cause The University lacked adequate controls to ensure that payroll charges were consistent with approved personnel action forms and supporting time and effort documentation. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Payroll costs charged to the federal program may be inaccurate or unsupported, increasing the risk of unallowable costs. Repeat Finding No. Recommendation The University should strengthen controls over payroll processing and review to ensure that salary charges and time and effort reporting agree with approved personnel action forms. Management should also perform periodic reconciliations and supervisory reviews. Management’s Response The University acknowledges the finding related to discrepancies between payroll charges, personnel action forms, and time and effort reporting. We understand the requirement that all salary and wage charges to federal awards must be supported by accurate records and internal controls in accordance with Uniform Guidance §200.430. Corrective Actions 1. Alignment of Personnel Actions and Payroll Distribution: The University will implement additional review steps to ensure that labor distribution reports match the approved personnel action forms before payroll is charged to the grant. Any discrepancies must now be corrected before processing. 2. Strengthened Time and Effort Verification: Time and effort reports must now be reviewed and reconciled against the percentages authorized on personnel action forms. Reports that do not match will be returned to departments for correction before certification. 3. Enhanced Internal Controls and Documentation: A standardized monthly reconciliation process will be established to ensure consistency between personnel records, effort reporting, and payroll charges. 4. Staff Training: Training will be provided to fiscal managers, the Office of Research and Sponsored Programs, human resources, and payroll personnel on Uniform Guidance requirements, proper effort reporting, and documentation standards. 5. Periodic Monitoring: Supervisory reviews will be conducted to ensure continued compliance and to identify discrepancies proactively. The University believes these corrective measures will strengthen internal controls and ensure that payroll charges to federal programs are accurate, allowable, and properly documented.
Equipment and Real Property Management Federal Program and Specific Federal Award Identification CFDA Title and Number 84.031 Higher Education Institution Aid Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Per Uniform Guidance § 200.313, institutions are required to conduct a physical inventory of equipment acquired with federal funds at least once every two years and reconcile the results with property records. Conditions and Contexts The University did not provide evidence that a physical inventory of federally funded equipment was performed at least once every two years. Cause The University did not have adequate procedures in place to ensure that required physical inventories were performed and documented. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect The University may not be adequately safeguarding federally funded equipment, increasing the risk of loss, theft, or misuse. Repeat Finding No. Recommendation The University should implement procedures to ensure that physical inventories of equipment are conducted at least biennially and properly documented. Inventory results should be reconciled to equipment records, and discrepancies should be investigated and resolved. Management’s Response The University acknowledges the finding regarding the absence of documented evidence that a physical inventory of federally funded equipment was performed within the required two year period. We recognize that maintaining proper inventory controls is essential to safeguarding federal property in accordance with Uniform Guidance §200.313. Corrective Actions 1. Implementation of a Biennial Inventory Schedule: The University has established a formal schedule to ensure that physical inventories of federally funded equipment are conducted at least once every two years and are documented consistently. 2. Centralized Inventory Documentation: A computerized inventory tracking system has been implemented to store all inventory records, reconciliation reports, and supporting documentation to ensure availability for audit. 3. Reconciliation Procedures: Equipment inventory results will be reconciled to the University’s fixed asset and property records, with any discrepancies documented, investigated, and resolved. 4. Staff Training and Oversight: Staff responsible for property management will receive updated training on federal inventory requirements, documentation standards, and reconciliation procedures. Supervisory review has been added to ensure ongoing compliance. The University believes these actions will strengthen internal controls over equipment management and ensure compliance with federal regulations moving forward.
Late Submission of Audit Report Federal Program and Specific Federal Award Identification CFDA Title and Number Student Financial Aid Cluster: 84.007 Federal Supplemental Educational Opportunity Grant 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans 93.364 Nursing Student Loans 84.031 Higher Education Institutional Aid (Title III) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Pursuant to the requirement of Uniform Guidance 2 CFR Part 200.512(a), single audit are required to be completed and the data collection form and reporting package submitted within the earlier of thirty (30) days after receipt of the auditor’s report, or nine (9) months after the end of the audit period. If the due date falls on a Saturday, Sunday, or federal holiday, the reporting package is due the next business day. Conditions and Contexts The June 30, 2025 audit report was not submitted within the prescribed time frame required by the federal regulations. The audit report was outstanding nine (9) months after the entity’s fiscal year end. Cause Management failed to ensure the audit report was issued within the prescribed time frame. Questioned Costs For the purpose of this condition, I have no questioned costs. Effect The University has not complied with the audit requirements of the Uniform Guidance 2 CFR Part 200.512(a). Repeat Finding Yes. See 2024-005. Recommendation I recommend that management of the University take steps to ensure the Single Audit report is submitted within the prescribed deadlines. Management’s Response The University acknowledges the auditor’s finding regarding the late submission of the June 30, 2025, Single Audit reporting package. Although the submission exceeded the required federal deadline by only one day, management recognizes that any delay constitutes noncompliance with 2 CFR 200.512(a), and we take full responsibility for this timing exception. Over the past six months, the University has undertaken significant steps to strengthen its financial, accounting, and compliance infrastructure. As part of this effort, the University has hired several key leaders and staff members, including a new Vice President & Chief Financial Officer, a Controller, and a Director of Financial Aid, among other critical staff additions. These new appointments have already begun enhancing oversight, accountability, and operational capacity within the Financial Affairs and Student Financial Aid functions. The slight delay in the FY 2025 submission occurred during a period of substantial organizational transition, when newly onboarded leadership was assessing existing workflows and implementing corrective improvements. To ensure that no future deadlines are missed—and to fully eliminate repeat findings—the University has established enhanced internal controls and strengthened reporting processes, including: • Implementing a detailed Single Audit reporting calendar with accelerated internal milestones. • Assigning clear roles, responsibilities, and escalation procedures across all involved departments. • Deploying an automated tracking and reminder system for federal reporting deadlines. • Conducting quarterly compliance and readiness reviews to ensure alignment with Uniform Guidance requirements. Management is committed to ensuring timely and accurate compliance with all federal reporting obligations. With the addition of new, experienced leadership and the implementation of strengthened processes, the University is confident that this issue has been addressed and will not recur.