Audit 405580

Finding No.: 2025-001 Federal Agency: U.S. Department of Education AL Program: 84.063/84.033/84.007 Student Financial Assistance Cluster Federal Award No.: Title IV HEA Program OPE ID 01034300 Area: Eligibility Questioned Costs: None Criteria: 2 CFR 200.303 (a) states the recipient and subrecipient of federal awards must establish, document, and maintain effective internal control over the Federal award that provides reasonable assurance that the recipient or subrecipient is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should align with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control-Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). The College is required to establish internal control to ensure compliance with the following requirements: 34 CFR 676.20 (s) states that: Minimum and maximum Federal Supplemental Educational Opportunity Grants (FSEOG) awards requires: (a) An institution may award an FSEOG for an academic year in an amount it determines a student needs to continue his or her studies. However, except as provided in paragraph (c) of this section, an FSEOG may not be awarded for a full academic year that is— (1) Less than $100; or (2) More than $4,000. Condition: We noted that seven students were awarded amounts exceeding the maximum allowable limit of $4,000, while one student received an award below the minimum allowable amount of $100. Cause: The condition was primarily due to the College’s limited familiarity with FSEOG requirements, as this represents its first year administering the program. As a result, management did not have adequate procedures or guidance in place to ensure compliance with the minimum and maximum award limits prescribed under federal regulations. Effect or potential effect: The College is in noncompliance with applicable requirements. Identification as a Repeat Finding: Not applicable. Recommendation: We recommend that management establish and implement formal policies and procedures for the administration of the FSEOG program, including clear guidance on the minimum and maximum award limits in accordance with federal regulations. Management should also provide adequate training to Financial Aid Office personnel on applicable federal requirements, perform supervisory reviews of award calculations prior to disbursement, and conduct periodic monitoring to ensure ongoing compliance with established limits. Views of responsible officials The College acknowledges the finding. Refer to corrective action plan.

Finding No.: 2025-002 Federal Agency: U.S. Department of Education AL Program: 84.063/84.033/84.007 Student Financial Assistance Cluster Federal Award No.: Title IV HEA Program OPE ID 01034300 Area: Special Tests and Provisions: Verification Questioned Costs: $20,042 Criteria: 34 CFR 668.54(a); FSA Handbook Application and Verification Guide, Chapter 4 requires an institution to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. Institutions shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. However, certain applicants are excluded from the verification process as listed in 34 CFR 668.54(b). A menu of potential verification items for each award year is published in the Federal Register, and the items to verify for a given application are selected by ED from that menu and indicated on the student’s output documents. Verification tracking groups and verification items for each award year can also be found in the annual FSA Handbook, Application and Verification Guide, Chapter 4. Institutions shall also require applicants to verify any information used to calculate an applicant’s Estimated Family Contribution (EFC) that the institution has reason to believe is inaccurate and provide an accurate code for the individual’s verification status in the Common Origination and Disbursement (COD) system. Condition: The following conditions were observed for 3 out of the 12 students tested out of a total of 25 students requiring verification during the fiscal year. The total amount awarded to these 3 students throughout the year was $20,042, whereas the total amount awarded to all 12 students tested was $83,491. Total amount awarded to all students selected for verification was $127,151. For 3 (or 25%) of 12 students tested, we noted discrepancies in family size between the verification worksheets and the students’ Institutional Student Information Records (ISIR), wherein the family size reflected on the verification worksheets was higher than that reported on the ISIR. Despite these discrepancies identified during the verification process, the ISIRs were not updated or corrected accordingly. Cause: The condition was due to the absence of adequate procedures and review controls to ensure that discrepancies identified during the verification process were properly updated and reflected in the ISIR and reported accurately in the COD system. Effect or potential effect: The College is in noncompliance with applicable verification requirements. Identification as a Repeat Finding: Finding No. 2024-004 Recommendation: The College should enhance training programs for staff involved in the verification process to ensure they are fully aware of the requirements and procedures. Establish robust internal controls and review mechanisms to ensure that verification worksheets are completed accurately and consistently with ISIRs. Implement a tracking system to ensure that all required corrections to ISIRs are performed in a timely manner. Views of responsible officials The College acknowledges the finding. Refer to corrective action plan.

Finding No.: 2025-003 Federal Agency: U.S. Department of Education AL Program: 84.063/84.033/84.007 Student Financial Assistance Cluster Federal Award No.: Title IV HEA Program OPE ID 01034300 Area: Special Tests and Provisions: NSLDS Reporting Questioned Costs: $-0- Criteria: Institutions are required to report enrollment information under the Pell grant via the National Student Loan Data System (NSLDS). Institutions must review, update, and certify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Condition: For 32, (or 53%), of 60 students tested, campus level information is not updated in NSLDS. Campus-level record data elements include OPEID number, enrollment effective date, enrollment status and certification date. For 10, (or 17%), of 60 students tested, program level information is not updated in NSLDS. Program-level record data elements include OPEID number, Classification of Instructional Programs (CIP) code, CIP year, credential level, published program length measurement, published program length, program begin date, program enrollment status and program enrollment effective date. Cause: The non-compliance is due to inadequate processes and controls for monitoring and updating students' enrollment status in the NSLDS. This includes delays in processing updates and a lack of oversight to ensure accurate reporting. Effect or potential effect: The College is in noncompliance with applicable enrollment reporting requirements. Identification as a Repeat Finding: Finding No. 2024-007 Recommendation: The College should develop and implement a formal process for monitoring and updating students' enrollment status in the NSLDS to ensure compliance with reporting requirements. Establish internal controls to track changes in enrollment status and ensure timely updates to the NSLDS. Conduct periodic reviews of the enrollment reporting process to identify and address any inaccuracies or delays. Provide training to relevant staff on the importance of compliance with enrollment reporting requirements and the procedures for accurate and timely updates. Views of responsible officials The College acknowledges the finding. Refer to corrective action plan.