Audit 4043

FINDING 2022-001: FINANCIAL RESPONSIBILITY FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. Criteria: An accredited school that participates in Federal programs authorized by Title IV of the Higher Education Act of 1965 is required to demonstrate minimum standards offinancial responsibility set forth by the U.S. Department of Education (DOE). Condition: The Organization did not meet the minimum financial standards set forth by DOE for the year ended December 31, 2022 as calculated in Supplementary Schedule A. Cause: The Organization showed an operating loss for the year. Effect: The Organization will be required to adhere to additional stipulations until such ratios are met. Recommendation: The Organization needs to monitor its financial responsibility ratios throughout the year. Management Response and Corrective Action: Management agrees that the ratios were not met and a response is included in the Corrective Action Plan.

FINDING 2022-002: LATE AUDIT FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. Criteria: A non-Federal entity shall transmit the reporting package, in an electronic form in accordance with the data standards established under chapter 64 and which shall include the non-Federal entity's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal entity (31 U.S. Code 7502(h)(2)(B)) . Condition: The Institution will be submitting its 2022 Single Audit late. Cause: The condition was caused by the Institution not providing audit support information in a timely manner. Effect: The result is the Institution may not have been incompliance with regulations, thus affecting its ability to effectively monitor operations. Question Costs: $0 Recommendation: We recommend that the Institution submit this audit report upon receipt from the auditors and await instruction from the Department of Education. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-002: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds. Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eight drop students and found one incorrect refund calculation. This is a repeat finding of prior year Finding 2021-001. Cause: The condition was caused by not including a scheduled break of five days or more when calculating the percentage of Title IV earned in Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution credit $196 to the student's account and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-001: FINANCIAL RESPONSIBILITY FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. Criteria: An accredited school that participates in Federal programs authorized by Title IV of the Higher Education Act of 1965 is required to demonstrate minimum standards offinancial responsibility set forth by the U.S. Department of Education (DOE). Condition: The Organization did not meet the minimum financial standards set forth by DOE for the year ended December 31, 2022 as calculated in Supplementary Schedule A. Cause: The Organization showed an operating loss for the year. Effect: The Organization will be required to adhere to additional stipulations until such ratios are met. Recommendation: The Organization needs to monitor its financial responsibility ratios throughout the year. Management Response and Corrective Action: Management agrees that the ratios were not met and a response is included in the Corrective Action Plan.

FINDING 2022-002: LATE AUDIT FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. Criteria: A non-Federal entity shall transmit the reporting package, in an electronic form in accordance with the data standards established under chapter 64 and which shall include the non-Federal entity's financial statements, schedule of expenditures of Federal awards, corrective action plan defined under subsection (i), and auditor's reports developed pursuant to this section, to a Federal clearinghouse designated by the Director, and make it available for public inspection within 9 months after the end of the period audited, or within a longer timeframe authorized by the Federal agency, determined under criteria issued under section 7504, when the 9-month timeframe would place an undue burden on the non-Federal entity (31 U.S. Code 7502(h)(2)(B)) . Condition: The Institution will be submitting its 2022 Single Audit late. Cause: The condition was caused by the Institution not providing audit support information in a timely manner. Effect: The result is the Institution may not have been incompliance with regulations, thus affecting its ability to effectively monitor operations. Question Costs: $0 Recommendation: We recommend that the Institution submit this audit report upon receipt from the auditors and await instruction from the Department of Education. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2022-002: INCORRECT REFUND CALCULATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN#: 84.268 YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds. Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested eight drop students and found one incorrect refund calculation. This is a repeat finding of prior year Finding 2021-001. Cause: The condition was caused by not including a scheduled break of five days or more when calculating the percentage of Title IV earned in Step 2 of the Return to Title IV refund calculation. Effect: The result is the Institution returned funds to the Department of Education that should have been retained by the Institution. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution credit $196 to the student's account and increase controls over refund calculations. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.