Audit 412608

Finding 2025-002: Financial Responsibility - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN # 84.268 - Year Ended December 31, 2025 Compliance Requirement: Special Tests and Provisions (N.) - 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 of financial responsibility set forth by the U.S. Department of Education (DOE). Condition: The College did not meet the minimum Composite Score set forth by the U.S. Department of Education for the year ended December 31, 2025. We consider this finding to be a material weakness and an instance of noncompliance. This finding is repeated and was reported in the prior year as Finding 2024-002. Cause: The College showed an operating loss for the fiscal year ended December 31, 2025. Effect: The College will be required to adhere to additional stipulations until such ratios are met. Questioned Costs: $0 Recommendation: The College needs to monitor its financial responsibility ratios throughout the year. Views of Responsible Officials: Management agrees that the ratios were not met and a response is included in the Corrective Action Plan.

2025-003: Late Refunds - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN #84.268 - Year Ended December 31, 2025 Compliance Requirement: Special Tests and Provisions (N) Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested four drop students in our sample and noted two late refunds. We consider this finding to be a material weakness and an instance of noncompliance. This finding was not a repeat finding. Cause: The condition was caused by enrollment data of drop status not relaying to Campus Ivy Core system thus Financial Aid staff was not notified timely of the drops. Effect: The result is the College retained funds which should have been returned to the Department of Education. Questioned Costs: $14,757 Students Direct Loan Total Drop Universe Dollars Refunded 4 $ 31,990 $ 31,990 Drop Universe Dollars Received 5 109,306 109,306 Drop Sample Dollars Received 2 58,594 58,594 Findings 2 14,757 14,757 Statistical sampling was not used in the making sample selections. Recommendation: We recommend the College increase controls over monitoring drop students and paying refunds. Views of Responsible Officials: Management agrees with this Single Audit Finding and a response is included in the Corrective Action Plan.