Finding Text
2022 ? 001 Financial Responsibility Ratio (Student Financial Aid Cluster ? All programs) Criteria According to 34 CFR 668. 171(b)(1), an institution is considered to be financially responsible if the institution?s Equity, Primary Reserve, and Net Income ratios yield a composite score of at least 1.5. Condition The University?s composite score as of June 30, 2022 was below 1.5. Cause Noncompliance was caused by the University?s financial condition. Effect The University is not considered to be financially responsible. Questioned Cost There is no questioned cost related to this finding. Context During review of the University?s financial responsibility ratio calculation, we noted that it?s composite score as of June 30, 2022 was below 1.5. Identification as a Repeat Finding This finding is a repeat of finding 2021-001 and 2020-001 in the immediately prior two audits. Recommendation We recommend the University take appropriate steps to improve its financial condition to be compliant. Views of Responsible Officials We agree with the recommendation.