Audit 399550

FY End
2025-07-31
Total Expended
$1.30M
Findings
1
Programs
2
Year: 2025 Accepted: 2026-04-23

Organization Exclusion Status:

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Findings

ID Ref Severity Repeat Requirement
1208584 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.063 FEDERAL PELL GRANT PROGRAM $748,245 Yes 1
84.268 Federal Direct Student Loans Program $549,294 Yes 0

Contacts

Name Title Type
JEH6H293SJM5 Frankie Negron Auditee
7877610640 Carlos De Angel Ramirez Auditor
No contacts on file

Notes to SEFA

Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, Cost Principles for Non-profit Organizations, wherein certain types of expenditures are not allowable or are limited to reimbursement. a. The Schedule is prepared from the Institution’s accounting records and is not intended to present its financial position or the results of its operations. b. The financial transactions are recorded by the Institution in accordance with the terms and conditions of the grants, which are consistent with accounting principles generally accepted in the United States of America (US GAAP). c. Expenditures are recognized in the accounting period in which the liability is incurred, if measurable or when actually paid, whichever occurs first. d. Expenditures are reported on the Schedule following the cost principles contained in the Uniform Guidance, wherein certain types of expenditure may or may not be allowable or may be limited as to reimbursement.
The information included in the Schedule may not fully agree with other federal awards reports, submitted directly to federal grantor agencies because, among other reasons, the award report may (a) be prepared for a different fiscal period and (b) include cumulative data (from prior years) rather than data from the current year only.
Major programs are identified in the Summary of Auditors’ Results Section in the Schedule of Findings and Questioned Costs. Federal programs are presented by federal agencies.
Assistance Listing Number ("ALN") included in the Schedule are determined based on the program name, review of grant contract information and the public description of federal assistance listings published by the U.S. Government on sam.gov. The first two digits identify the federal department or agency that administers the program, and the last three numbers are assigned by numerical sequence.
The Institution participates in the Federal Direct Student Loans (Direct Loans) Program (ALN 84.268) of the U.S. Department of Education (USDE). Under the Direct Loans program, the Institution is responsible only for certain administrative duties, accordingly, the disbursements under the program and the outstanding loan balances are excluded from the financial statements of the Institution. However, Direct Loans are considered a component of the student financial assistance programs of the Institution, as such, new loans processed during the year ended July 31, 2025, amounting to $638,220, were included in the Schedule. Federal expenditures for Direct Loans are determined when loans are made to the students, accordingly, the balance of Direct Loans from previous years is not considered federal expenditures of the current year.
No federal grant dollar has been passed through to sub-recipien
On January 27, 2025, the OMB of the United States Federal Government instituted a pause (freeze) on the disbursement of federal grant and loan funds, which became effective on January 28, 2025. The extent to which the funding freeze impacts our operations, financial results, and cash flows, both current and future, will depend on future developments, which are highly uncertain and cannot be predicted with any measure of certainty or probability.

Finding Details

Federal Program Federal PELL Grant Program ALN 84.063 Federal Direct Student Loan Program (DL) ALN. 84.268 Name of Federal Agency U.S. Department of Education (USDE) Pass-through Entity N/A Finding Type Material Weakness in Internal Control over Compliance Criteria According to 34 CFR 685.309 (b)(2)(ii) states that unless it expects to submit its next updated enrollment report to the Secretary within the next sixty (60) days, a school must notify the Secretary within thirty (30) days after the date the school discovers that; a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or a student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address. Condition As part of our testing of 9 students who graduated and/or withdrew during 2025, we noted the following instances of non-compliance: 1. Four (4) students for which the University did not report to the National Student Loan Data System (NSLDS) the student status changes. 2. One (1) student for which the University did not report to the National Student Loan Data System (NSLDS) the student status changes within the required 60 days’ period. 3. Two (2) students for which the University did not report the correct student status changes to the National Student Loan Data System (NSLDS).Cause The Institution did not establish and maintain adequate internal controls to ensure and document compliance with the Enrollment Reporting requirement Effect Failure to timely and accurately report enrollment status information may result in: • Inaccurate student loan status records. • Improper grace periods, deferments, or repayment status determinations. • Noncompliance with federal regulations. • Increased risk of regulatory sanctions or other administrative action by the U.S. Department of Education. Questioned Cost None Identification of a Repeat Finding This is a repeat finding from the immediate previous year’s audit (Finding No. 2024-001). Context Of the 41 status changes for 2025, we selected 9 students for testing and noted 7 instances in which the University did not comply with the enrollment reporting requirements. Views of Responsible Officials and Planned Corrective Actions The University management agrees with this finding. Responsible Official Francisco Ortiz, President (787) 761-0640. Please refer to the corrective action plan on pages 40. Recommendation Management should reassess the process and timeframe in which the University submits the information to the National Student Loan Data System and monitoring to ensure they comply with the reporting timeframe. We recommend that the Institution: 1. Develop and implement formal written procedures for Enrollment Reporting. 2. Assign clear responsibility to designated personnel. 3. Maintain documentation evidencing each submission and confirmation of acceptance by NSLDS. 4. Implement periodic supervisory review to ensure reporting occurs at least every 60 days in accordance with federal requirements. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to the National Student Loan Data System.