Audit 403102

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work-Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; FederalDirect Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Verification [34 CFR 688.51 through 668.61]. Condition – The District did not properly update student verification status in common origination and disbursement (COD). Cause – The District’s internal controls related to verification did not ensure verification status was properly updated in COD. Effect or Potential Effect – Student financial aid could be disbursed to a student who was not eligible. Questioned Costs – None. Context – Out of a population of 47 students who were selected for verification during the 2024-2025 award year, a sample of 5 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 5 students tested, 1 student’s verification status was not correctly recorded in COD. Identification as a Repeat Finding, if Applicable – N/A Recommendation – The District should update internal controls to ensure verification status is updated correctly in COD. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work- Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting (34 CFR 690.93(b)(2); 34 CFR 682.610; 34 CFR 685.309. Institutions are required to report enrollment information. Condition – The District did not report timely and accurate student status information to the National Student Loan Data System (NSLDS). Cause – The District’s internal controls related to NSLDS reporting did not ensure status changes were reported timely and accurately. Effect or Potential Effect – Incorrect enrollment information was reported to NSLDS, and some of the information was not reported timely, leading to being not in compliance with requirements noted above. Questioned Costs – None. Context – Out of a population of 5,036 students who received Pell Grants or Federal Direct Loans during the 2024-2025 award year and also had an increase or decrease in enrollment, graduated, or withdrew, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 16 students’ enrollment information was incorrectly reported to NSLDS or not reported timely. Identification as a Repeat Finding, if Applicable – Yes Recommendation – The District should update internal controls related to NSLDS reporting to ensure changes in students’ enrollment status are reported in a timely and accurate manner on a recurring basis. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.

Student Financial Assistance Cluster Federal Supplemental Educational Opportunity Grants, ALN 84.007; Federal Work- Student Program, ALN 84.033; Federal Pell Grant Program, ALN 84.063; Federal Direct Student Loans, ALN 84.268 U. S. Department of Education, Program Year 2024-2025 Type of Finding – Material Weakness in Internal Control Over Compliance Criteria or Specific Requirement – Special Tests and Provisions – Return of Title IV Funds [34 CFR 668.22(a)(1) through (a)(5)]. Condition – The District did not properly calculate the total amount disbursed or to be isbursed due to an incorrect term date, which led to incorrect calculations of funds to be returned. Additionally, the District did not return funds in the required 45 day window. Cause – The District’s internal controls did not ensure accurate information was inputted into the calculation of returns and did not ensure return was made within the required timeframe. Additionally, no detective controls for supervisory review and approval of the calculations were performed to detect errors. Effect or Potential Effect – Incorrect amounts were returned to the Department of Education or disbursed to students. Also, returns were not made within the 45 day required timeline. Questioned Costs – $2,880 – ALN 84.063 Context – Out of a population of 385 students who withdrew during the 2024-2025 award year, a sample of 40 students was selected for testing. Our sample was not, and was not intended to be, statistically valid. Of the 40 students tested, 4 students’ calculations were incorrect due to the use of incorrect term dates by the institution and 7 students were returned after the 45 day requirement. Additionally, $2,880 calculated to be returned to the Department of Education was not returned. Identification as a Repeat Finding, if Applicable – Yes Recommendation – The District should ensure its process and internal controls are updated to ensure total days in the semester are calculated correctly and disbursements are made timely. Additionally, the related calculations should be subject to review and approval as a best practice. Views of Responsible Officials and Planned Corrective Actions – There is no disagreement with the audit finding. See corrective action plan.