Audit 402625

Finding 2025-004 Federal Assistance Listing Number: 84.268 Subprogram Number(s): 84.268 Federal Agency: U.S. Department of Education Program Name: Federal Direct Student Loans Type(s) of Compliance Requirements: Special Tests and Provisions Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Under the disbursement to or on behalf of students requirements, credit balances are to be paid to the student or parent borrower (1) within 14 days after (a) the first day of class of a payment period if the credit balance occurred on or before that day, or (b) the balance occurred if that was after the first day of class; or (2) if the institution obtained an authorization to hold credit balances and was not on the reimbursement or heightened cash monitoring payment methods, by the end of the loan period or last payment period in the award year for which the funds were awarded. Condition: In two separate instances, the College refunded credit balances 112 days and 22 days after the first day of class without authorization to hold the balances. Cause: The College failed to process the refunds in a timely manner. Effect: The College is noncompliant with the requirements of the Student Financial Aid program. Identification of a Repeat Finding: 2024-002 Recommendation: We recommend that the College develop procedures and related controls to ensure a timely processing of the refunds.

Finding 2025-005 Federal Assistance Listing Number: 84.268 Subprogram Number(s): 84.268 Federal Agency: U.S. Department of Education Program Name: Federal Direct Student Loans Type(s) of Compliance Requirements: Special Tests and Provisions Type of Finding: Internal Control over Compliance – Significant Deficiency; Noncompliance Criteria: Under the Return of Title IV Funds compliance requirement, institutions must return unearned Title IV funds to the U.S Department of Education within 45 days of the date the institution determines the student withdrew (or within 30 days for students who never began attendance). Condition: The College returned Title IV funds 79 days after the College became aware of the student's withdrawal. Cause: The College failed to process the return in a timely manner due to miscommunication between departments within the College. Effect: The College is noncompliant with the requirements of the Student Financial Aid program. Recommendation: We recommend that the College implement stronger internal controls and communication procedures to ensure timely return of Title IV funds within the required 45-day period. This includes establishing clear withdrawal notification protocols and monitoring processes.