Audit 402942

2025-003 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: The College must establish and maintain the financial records that reflect each Title IV program transaction on a current basis (34 CFR 668.24). Condition: The College incorrectly reported tuition and fees on the Fiscal Operations Report and Application to Participate (FISAP) for the 2023-2024 academic year. We consider this to be an instance of noncompliance of the Reporting compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2024-005. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause: This condition was caused by inadequate controls over Reporting and incorrect information provided at time of FISAP submission. Effect: The College did not correctly report tuition and fees on the FISAP that was submitted to the Department of Education. Recommendation: We recommend that the College puts controls in place to review all inputs to the FISAP report to ensure all amounts reported are accurate and agree with the College’s records. View of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.

2025-004 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: A school performs internal reconciliation when it compares business office records of funds requested, received, disbursed, and returned to financial aid office records of funds awarded to students. When the school compares its reconciled internal records to the Department’s records of funds received and returned, and of grants or loans originated and disbursed to students at the school, it is performing external reconciliation. A school ensures that the Department’s records reconcile with the school’s records, both at the cumulative and individual student levels, when it performs external reconciliation. (34 CFR 668.166) Condition: The College disbursed funds to students during the appropriate semesters in a timely manner, however, did not draw the federal direct funds down from the Department of Education until September 2024 and January 2025, outside of the award period for the disbursed award year of 2023-2024. We consider this finding an instance of noncompliance and is a repeated finding shown in Section IV of this report as prior year finding 2024-006. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause: The Institution had significant staff turnover, which impacted proper timing for drawdowns. Effect: The College was unable to properly reconcile on a monthly basis as funds posted to student ledgers are not drawn down from the Department of Education until months after disbursement. This may lead to inconsistencies between school records and the Department of Education within the Common Origination and Disbursement (COD) system. Recommendation: Sikich recommends the College create standards of procedures to disburse the appropriate student eligible Federal Direct program amounts following heightened cash monitoring rules, and once applied request the drawdown within a set number of days to ensure proper reconciliation. View of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.

2025-005 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.22 (a)(1) states “When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of title IV grant or loan assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section.” 34 CFR 668.22 (e)(2) states, “The percentage of title IV grant or loan assistance that has been earned by the student is - (i) Equal to the percentage of the payment period or period of enrollment that the student completed (as determined in accordance with paragraph (f) of this section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of 60% of the payment period or period of enrollment for a program that is measured in credit hours; or…” 34 CFR 668.22(j) notes, “(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew as defined in paragraph (l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b).” Condition: We tested 19 drop students and found one incorrect refund calculation (5.3%). We consider this finding to be an instance of noncompliance in relation to Special Tests and Provisions and is not a repeated finding. Statistical sampling was not used. Questioned Costs: $752 Cause and Effect: The cause was due to error in the Financial Aid Department. The effect is Return of Title IV funds calculations resulted in incorrect amounts returned by the College. Recommendation: We recommend the College refund $752 to the Department of Education, credit $752 to the appropriate student’s account and increase controls over refund calculations. Views of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.

2025-006 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Pell Grant Program (d) Federal Direct Student Loans, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 690.83 (b)(2) which states the institution shall submit “in accordance with deadline dates established by the Secretary, through publication in the Federal Register, other reports and information with Secretary requires and shall comply with the procedures the Secretary finds necessary to ensure that the reports are correct.” 34 CFR 685.309(b)(1-2) which states a school shall “upon receipt of a student status confirmation report from the Secretary, complete and return that report to the Secretary within 30 days of receipt; and unless it expects to submit its next student status confirmation report to the Secretary within the next 60 days, notify the Secretary within the next 60 days, notify the Secretary with 30 days if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of student…” Condition: The College did not correctly report enrollment status changes for 21 out of 40 students tested (52.5%). We consider this condition to be a material weakness of the Special Tests and Provisions compliance requirement and is a repeated finding shown in Section IV of this report as prior year finding 2024-004. Statistical sampling was not used in making sampling selections. Questioned Costs: N/A Cause: The students were incorrectly reported due to errors in their financial aid system. Effect: The College did not timely and accurately submit enrollment status information, which has the potential to delay the start of the repayment period for students who have received loans. Recommendation: We recommend the College correct all known errors in their financial aid system to prevent further errors. View of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.