Finding 2025-002: Financial Responsibility - Student Financial Assistance Cluster - Federal Direct Student Loans - ALN # 84.268 - Year Ended December 31, 2025 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. Recommendation: The College needs to monitor its financial responsibility ratios throughout the year. Responsible Person: Dorian G. Kramer, DJ Kramer, Jennifer Hogan Corrective Action Plan: The college continues to monitor its financial responsibility ratios through the aforementioned financial accountability plans. As well, DRCOM has continued to improve its financial soundness through 2026 through multiple approaches, including a professional third-party assessment and plan implementation for increasing admissions, restructuring of debt, donor recruitment, hiring of a new clinic manager to increase income in the student clinic, and exploring other revenue streams for the college Implementation Date: Overall plan has been in place since 08/2024, with a reassessment of all strategies at the beginning of each semester.