Finding 2024-004: Failure to Notify Secretary of HCM1 Reporting Events while Participating under the Zone Alternative Comments on Finding and Recommendations: The College agrees with this finding as determined in the examination and states that the College had deficiencies related to the Institution's failure to properly notify the Secretary of a violation of a loan agreement and a failure to make a payment in accordance with its debt obligations,that resulted in a creditor filing suit to recover funds under those obligations. Actions Taken or Planned: The College was unaware of the requirement to notify the Secretary of the concerns with the loans and is taking action to notify the Secretary at the time of generating this document. The College has hired an Accreditation and Compliance Officer to ensure that lack of understanding of requirements does not happen in the future. The College would also like to note the following: the individual referenced in the suit had given verbal, though not written permission to not pay the loan past the due date while she served as the Vice Chair of the Governing Board. Upon removal from the Board due to failure to perform duties the individual filed suit, the suit is being partially argued by the College’s attorney noting the complainant had failed in their duties while on the board and may have engaged with another individual to defraud the College. Additionally while the College is submitting notification currently, there is a Government shutdown that may interfere with the notification process.