Audit 412634

Untimely Return of Title IV Funds (R2T4) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants, 84.268 Federal Direct Student Loans Federal Award Identification #: 2025-2026 Financial Aid Year Condition: When students withdrew officially or unofficially during a term, the University did not always return unearned Title IV aid timely. Criteria: 34 CFR 668.22 Questioned Costs: $15,522 Context: Out of 40 students tested, 2 students who withdrew during the audit period tested did not have unearned Title IV funds originally returned. 1 student had $1,578 in Federal Direct Loans returned in June 2026, 164 days late. 1 student had $3,476 in Pell returned in July 2026, 109 days late. These amounts are included in the questioned costs. As part of a full file review, the University identified 10 additional students who did not meet the 60% attendance mark yet did not have R2T4s performed. All of these were corrected and resulted in $7,389 of Federal Loans and $3,079 of Pell returned in September 2026 as part of the audit process, ranging from 200 to 279 days late, and are therefore included as questioned costs. Cause: This was an oversight by the University resulting from a lack of reliable last date of participation data in the student systems. Until this issue is resolved, the University will be manually reviewing all 0-credit students at the end of each term. Effect: Incorrect amount of unearned Title IV funds returned, returns of Title IV funds were not performed timely. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend an individual in financial aid with the appropriate level of experience periodically review modular students R2T4 calculations and returns to help ensure that internal controls over such process can operate effectively and achieve compliance. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Common Origination and Disbursement (COD) Reporting Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants, 84.268 Federal Direct Student Loans Federal Award Identification #: 2025-2026 Financial Aid Year Condition: The disbursement dates in COD did not always agree with the actual dates of disbursement on the student account when reporting disbursement records for Pell and Federal Direct Loans (FDL) to COD. Criteria: 34CFR 668.164(a) Questioned Costs: $0 Context: 20 of 40 students tested had COD loan and Pell disbursement date errors ranging from 6-35 days. There were no errors in the amounts reported, just the date of disbursement. Cause: The student information system was not set up to sync actual disbursement dates from the student account to COD. Effect: Inaccurate FDL reporting can impact a student's interest accumulating period based on the dates of the loan disbursement dates. Inaccurate Pell reporting could allow a student to exceed their lifetime limit, however, there was no indication of this. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend that procedures be implemented to ensure that disbursement reporting to COD be reflective of the actual disbursement dates. We also recommend that the University update monthly reconciliations to be by date as well as amount. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Verification Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grant Federal Award Identification #: 2025-2026 Financial Aid Year Condition: Verification was completed inaccurately for one student. Criteria: 34 CFR 668.56 Questioned Costs: $8,759 Context: There was one student out of a sample of 15 selected for verification for which the University did not obtain underlying tax support as required. Cause: This was an oversight by the University. Effect: Need based aid is impacted directly by the results of verification. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University periodically review verification completed for students to ensure accuracy and compliance with verification requirements. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan