Audit 402999

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.268 Federal Direct Student Loans - 2024/2025 P268K251430 Federal Financial Assistance Listing #84.063 Federal Pell Grant Program - 2024/2025 P063P241430 Special Tests & Provisions: Return of Title IV Funds Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Criteria: The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution’s determination that the student withdrew (34 CFR 668.22(e)). Condition: Two instances were identified where the amount of funds to be returned was not remitted correctly, and two instances were identified where the funds were returned in the correct amount, but not timely. Cause: The University did not have a formal, documented control process to ensure all students who withdrew from courses had a return of Title IV calculation completed accurately and timely or a review of the return of Title IV calculation that was completed to ensure accuracy and reasonableness. Effect: Without a formal process to document the completion and review of return of Title IV calculations, there is a possibility that the calculation could be incorrect or not completed, and funds returned could be incorrect or not returned when required to be. Questioned Costs: None reported Context/Sampling: Of the 17 students who had an R2T4 calculation performed, 6 students were tested. Repeat Finding from Prior Years: Yes, prior year finding 2024-001 Recommendation: The University should review its established formal process and controls to ensure that a return of Title IV calculation is completed and documented for all withdrawn students and that the review process is also documented. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.268 Federal Direct Student Loans - 2024/2025 P268K251430 Federal Financial Assistance Listing #84.063 Federal Pell Grant Program - 2024/2025 P063P241430 Special Tests & Provisions: Enrollment Reporting Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Criteria: A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to federal direct loan program loan holds by Education Department. Reporting in a timely and accurate manner is critical for effective management of the programs. An institution must submit student status changes to the National Student Clearing House, no later than 60 days after the Institution’s Determination Date. In addition, the enrollment effective date reported to the National Student Clearing House should be the same as the student’s last date of attendance for withdrawals. Condition: Fourteen instances were noted where enrollment status reported to the National Student Clearing House was not the same as the student’s actual enrollment status. Cause: The University changed the required credit hours for graduate students to be considered full time. The old requirement was used in the calculation of enrollment status to be submitted to National Student Clearing House instead of the new requirement. The University also did not include the intersession course in its calculation of enrollment status for the Spring semester to be submitted to National Student Clearing House. Effect: The enrollment status reported to the National Student Clearing House was not reflective of the student’s actual enrollment status. Questioned Costs: None Context/Sampling: Non-statistical sampling was performed. Fourteen instances were identified in 60 students tested. Over 250 students had status changes during the year. Repeat Finding from Prior Years: No Recommendation: The University should implement controls to ensure student status changes are correctly processed in the National Student Clearing House. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.