Finding Text
COMPLIANCE WITH CALCULATION OF COMPOSITE SCORE IN REGARD TO FINANCIAL RESPONSIBILITY
Criteria
Per 34 CFR 668.171 and 34 CFR.668.172, the College is required to obtain a composite score of at least 1.5.
Condition and Context
The calculation of the College's composite score, which is based on information provided in the audited financial statements, was calculated to be less than 1.5.
Cause
The College experienced a large unrestricted net loss during the current fiscal year, which was the primary cause in the reduction of the composite score.
Potential Effect
The College may be placed on heightened financial oversight related to its administration over federal financial aid programs.
Questioned Costs
None.
Recommendation
We recommend that the College work with the Department of Education, which may include reducing expenses necessary to reflect unrestricted activities from reporting expenses in excess of revenue and any other necessary requirements made from the Department of Education.
Views of Responsible Officials and Planned Corrective Action
The College is working to increase enrollment and adjusting the budget accordingly with available resources to reflect a positive net income from unrestricted operations.