Finding Text
FINDING 2022-001: FINANCIAL RESPONSIBILITY
FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION
PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM
ALN#: 84.268
YEAR ENDED: DECEMBER 31, 2022 Compliance Requirement: Administrative Capability. 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 offinancial responsibility set forth by the U.S. Department of Education (DOE). Condition: The Organization did not meet the minimum financial standards set forth by DOE for the year ended December 31, 2022 as calculated in Supplementary Schedule A. Cause: The Organization showed an operating loss for the year. Effect: The Organization will be required to adhere to additional stipulations until such ratios are met. Recommendation: The Organization needs to monitor its financial responsibility ratios throughout the year. Management Response and Corrective Action: Management agrees that the ratios were not met and a response is included in the Corrective Action Plan.