10. 2025-010 – Reporting – Material Weakness in Internal Controls over Compliance and Instance of Noncompliance Recommendation: The auditors recommend the University implement the proper controls to ensure that disbursements are accurately applied to student accounts and reported to COD accurately and timely. Planned corrective actions: Heritage University agrees with the recommendation and is strengthening its controls over the disbursement and reporting of Title IV funds. Management is reviewing the processes between Financial Aid and Student Accounts to ensure disbursements are accurately applied to student accounts and reported to COD completely, accurately, and within required timeframes. As part of this work, the University is establishing clearer ownership, defined timelines, and documented checkpoints for reviewing and reconciling disbursement activity between the financial aid system, student accounts, and COD. Responsibilities will be assigned for identifying and resolving discrepancies and ensuring required corrections are completed timely. The University will also incorporate documented review and reconciliation procedures into its Financial Aid processes and continue to evaluate staffing, training, system access, and workload to ensure employees have the capacity and resources necessary to consistently perform these compliance responsibilities. Name of Responsible Party: Nancy Benavidez, Sagrario Armenta Jimenez Anticipated completion date: Most of the clean-up will happen during Fiscal Year 2026-2027. But this will always remain a project for continuous improvement.