Finding Text
Criteria: In order for an institution to participate in any Title IV program, the institution must be financially responsible. One of the general standards for being considered financially responsible per 34 CFR section 668.171(b) is to obtain a composite score of at least 1.5. An institution that does not meet one or more of the general standards must comply with the alternative standards and requirements of financial responsibility under 34 CFR section 668.175. Condition: The College's composite score based upon the audited financial statements as of May 31, 2025 was less than 1.5. Cause: The College was impacted by multi-year operating losses and has borrowed from its endowment over multiple years to meet liquidity needs. As a result, at May 31, 2025, the College's composite score was negatively impacted. Effect: The College did not meet the definition of being financially responsible for the period ending May 31, 2025 under the general standards and, in turn, must comply with the alternative standards. Recommendation: The College is reviewing its operations to determine the best approach to maintain adequate levels of liquidity, in addition to improving its operating revenues. Views of responsible officials: The College agrees with the finding. Refer to the Corrective Action Plan.