Finding Text
Criteria - An institution must keep their Eligibility and Certification Approval Report (ECAR) current by reporting any changes that result in an individual or owner acquiring the ability to substantially affect the actions of the institution. Such a change must be reported within 10 days of the change. An individual or corporation has the ability to substantially affect the institution’s actions when they are the institution’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the Federal Student Aid programs at the school, or a member of the institution’s board of directors.
Condition - The Institute had the following changes that were required to be updated on their ECAR:
• The V.P. of Finance (equivalent to a chief financial officer) was no longer active at the institution as of April 2022.
• A Board Member was no longer serving the institution as of May 2021.
• A Board Member was added to the Board in October 2021.
These changes to the Institute’s ECAR information were not submitted until June 2023, subsequent to inquiry by auditors.
Context - Two of the seven officials listed on the Institute’s ECAR were not active and one official was not listed.
Effect - The Institute is not in compliance with reporting change submissions for their ECAR which could cause the Institute to become ineligible or incur penalties for failing to update information timely.
Cause - Although the changes for the ECAR were initiated in the E-app program by the Financial Aid Director in May 2022 the final review and submission by the President was not performed until June 2023.
Recommendation - We recommend any changes to the Institute’s general partner, chief executive officer (or other executive officer), chief financial officer, individual designated as the lead program administrator for the FSA programs at the school, or a member of the school’s board of directors be reported by the Institution within 10 days of the change.
Response - Morrison Institute of Technology understands the finding and the importance of timely ECAR updates.
Conclusion - Response accepted.