Ohio Institute of Allied Health, Inc.

FINDING 2025-001: INCORRECT FEDERAL DIRECT LOAN AMOUNTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL DIRECT LOAN PROGRAM ALN: 84.268 FEDERAL AWARD YEAR: 2024-2025 Compliance Requirement: Eligibility (E.) Criteria: A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student’s estimated cost of attendance for the period of enrollment less the borrower’s expected family contribution and estimated financial assistance for that period. Further, a second-year student can receive up to $4,500 in subsidized loans in one academic year (34 CFR 685.203). Condition: We tested seventy-one files, sixty-seven of which were Federal Direct Loan recipients, and two students received incorrect loan amounts. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by using an incorrect number of credits while prorating the final academic year of the program for one student and by awarding the wrong grade level loans for the other student. Effect: The result is one student received an overawarded unsusidized loan and the other student received an underawarded subsidized loan. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: As $237 has since been refunded to the Department of Education, we recommend the Institution increase controls over packaging direct loans. There is no action required for the $333 in underawarded subsidized loans, as the student is no longer a current student, so the Institution is unable to reclassify the loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Finding 2025-001: Incorrect Federal Direct Loan Amounts – the auditor tested seventy-one files, sixty-seven of which were Federal Direct Loan recipients, and two students received incorrect loan amounts. It is recommended that the Institution refund $237 to the Department of Education and increase controls over packaging direct loans. There is no action required for the $333 in underawarded subsidized loans, as the student is no longer a current student, so the Institution is unable to reclassify the loans. Comments on Finding and Recommendation(s): This was an oversight on previous FA advisor when prorating loans. Actions Taken or Planned: Employee was removed from role earlier in the year and intense training has been given to the replacement. All debts have been settled with the Department of Education and appropriate student ledgers updated.

FINDING 2025-002: UNPAID REFUNDS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM ALN: 84.063 & 84.268 FEDERAL AWARD YEAR: 2024-2025 Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Condition: We tested twenty-two drop students and noted two unpaid refunds. We consider this finding to bean instance of non-compliance. Effect: The result is the Institution is retaining monies which need to be returned to the Department of Criteria: Refunds, if necessary, must be calculated and made within 45 calendar days of the date the student withdraws (34 CFR 668.22, 685.306). Cause: The condition was caused by oversights in the financial aid department. Question Costs: $5,808 Statistical sampling was not used when making sample selections. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan. Recommendation: As $2,674 has since been refunded to the Department of Educaiton, we recommend the Institution refund the $3,134 to the Department of Education and increase controls over paying refunds.

Finding 2025-002: Unpaid Refunds – the auditor tested twenty-two drop students and noted two unpaid refunds. It is recommended that the Institution refund the $5,808 to the Department of Education and increase controls over paying refunds Comments on Finding and Recommendation(s): Happened during transitional phase of banking and employees and should be seen as an one off situation. Actions Taken or Planned: All banking accounts have been reconciled and refunds have been settled. We have secured more qualified accounting representatives to ensure timeliness going forward.

FINDING 2024-001: INCORRECT PELL GRANTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student’s Federal Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested sixty-three files, fifty-four of which were Pell Grant recipients, and four students received Pell grants in excess of their allowed amounts and two students did not receive the full amount of their allowed Pell grants. The students were eligible for $31,028, but received $32,885. We consider this finding to be an instance of noncompliance and is a repeat finding shown in Section IV of this report as prior year Finding 2023-002. Cause: The condition was caused by using an incorrect number of credits while calculating the Pell Grants for four students, by not properly adjusting Pell status upon dropping for one student and by using an incorrect expected family contribution for the other student. Effect: The result is the students received incorrect Pell monies. Question Costs: $1,857 Statistical sampling was not used when making sample selections. Recommendation: As $2,910 has since been refunded to the Department of Education and $1,053 has since been credited to the students' accounts, we recommend the Institution increase controls over monitoring and awarding Pell Grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Finding 2024-001: Incorrect Pell Grants Tested sixty-three files, fifty-four of which were Pell Grant recipients, and four students received Pell grants in excess of their allowed amounts and two students did not receive the full amount of their allowed Pell grants. Comments on Finding and Recommendation(s): The Institute agrees with the finding and Auditor's recommendation. Actions Taken or Planned: The school has revised our method of requesting aid and the enrollment status of each student will be verified individually prior to requesting Pell. We have also removed FA administrator (effective 12/2023) and third-party servicer from their role (effective 4/2024). We will be refunding $2,910 to the Department of Education and crediting $1,053 to the affected student accounts.

2023-002

FINDING 2024-002: INCOMPLETE VERIFICATION FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM ALN: 84.063, 84.268 FEDERAL AWARD YEAR: 2023-2024 Compliance Requirement: Eligibility (E.) Criteria: An institution shall require each student whose application is selected for verification to verify all of the applicable items specified (34 CFR 668.54). Condition: We tested sixty-three files and an application selected for verification did not match supporting documentation for one student. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by an oversight in the financial aid department. Effect: The result of not properly verifying a student’s Institutional Student Information Report (ISIR) to supporting documentation is the student could be ineligible or could have received an unauthorized award. Question Costs: $5,929 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution updated the ISIR to obtain the proper expected family contribution in order to calculate the difference in eligibility, and if unable to do so, refund $5,929 to the Department of Education and increase controls over student verification. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Finding 2024-002: Incomplete Verification Tested sixty-three files and an application selected for verification did not match supporting documentation for one student. Comments on Finding and Recommendation(s): The Institute agrees with the finding and Auditor's recommendation. Actions Taken or Planned: The school has implemented an internal check and balance to ensure that all files have the documentation required. The school has also partnered with a third-party servicer that will also be auditing the documentation needed to complete verification of student files.

Finding 2023-002: Incorrect Pell Grants Compliance Requirement: Eligibility (E.) Criteria: The amount of a student’s Federal Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62). Condition: We tested sixty-four files, fifty-three of which were Pell Grant recipients, and six students received Pell grants in excess of their allowed amounts and eight students did not receive the full amount of their allowed Pell grants. The students were eligible for $17,880, but received $16,738. We consider this finding to be a significant deficiency and is a repeat finding shown in Section IV of this report as prior year Finding 2022-003. Cause: The condition was caused by using an incorrect number of credits while calculating the Pell Grants for eleven students, by using an incorrect Pell per table for two students and by not packaging up to 600% Pell Lifetime Eligibility Used (LEU) for one student. Effect: The result is the students received ineligible Pell monies. Question Costs: $0 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $3,097 to the Department of Education, credit $4,239 to the students' accounts and increase controls over Pell Grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING2023-2- Incorrect Pell Grants The Institute incorrectly calculated Pell Grants for thirteen (13) students. A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned Previous FA administrator failed to consistently update student enrollment status in software. This caused incorrect Pell awards to be requested and disbursed. We have revised our method of requesting aid and the enrollment status of each student will be verified individually prior to requesting Pell. We have also removed FA administrator (effective 12/2023) and third-party servicer from their role (effective 4/2024). We will be refunding $3,097 to the Department of Education and crediting $4,239 to the affected student accounts. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

2022-003

Finding 2023-003: Overaward Federal Direct loans Compliance Requirement: Eligibility (E.) Criteria: A first year student can receive up to $3,500 in subsidized loans and $6,000 in unsubsidized loans in one academic year (34 CFR 685.203). Condition: We tested sixty-four files, fifty-five of which were Federal Direct Loan recipients, and two students were overawarded Federal Direct loans. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-004. Cause: The condition was caused by using an incorrect number of credits while calculating the remainder of the programs, which was less than an academic year in length. Effect: The result is the students received ineligible loan proceeds. Question Costs: $1,056 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $1,056 to the Department of Education and increase controls over Direct Loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2023-3- Overawarded Federal Direct Loan Amounts The Institute had not correctly calculated the federal loan eligibility for two (2) students. A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned Previous FA administrator failed to consistently calculate student enrollment hours. This caused incorrect loan awards to be prorated and disbursed. We have revised our method of requesting aid and the enrollment status of each student will be verified individually prior to requesting loans. We have also removed FA administrator (effective 12/2023) and third-party servicer from their role (effective 4/2024). We will be returning $1,056 to the Department of Education. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

2022-004

Finding 2023-004: Untimely and Unpaid Credit Balances While Participating under the Zone Alternative and the Heightened Cash Monitoring Payment Method. Compliance Requirement: Eligibility (E.) Criteria: Under the heightened cash monitoring payment method, an institution must credit a student’s ledger account for the amount of Title IV, HEA program funds that the student or parent is eligible to receive, and pay the amount of any credit balance due before the institution submits a request for funds (34 CFR 668.162(d)). Condition: We tested sixty-four files and found unpaid and untimely credit balances for ten students. We consider this finding to be a material weakness and is a repeat finding shown in Section IV of this report as prior year Finding 2022-009. Cause: The condition was caused by a breakdown in controls over paying credit balances prior to requesting funds. Effect: As a result, the Institution paid $7,904 of late credit balances and still owes $2,740 of unpaid credit balances. Question Costs: $10,644 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over the payment of credit balances. We are qualifying our opinion over this attribute as the conditions of Heightened Cash Payment Monitoring 1 have not been adhered to for the audit period. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2023-4- Untimely Paid and Unpaid Credit Balances The Institute had Untimely Paid and Unpaid Credit Balances while Participating under the Zone Alternative and the Heightened Cash Monitoring 1 Payment Method A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned We have revised the process of student stipends ofdisbursements. Each student whose account receives a disbursement whom results in a credit balance, will be given stipend prior to any draw down. We shall also make process and procedures with new third-party servicer to ensure stipend is sent prior to drawdown. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

2022-009

Finding 2023-005: Incorrect Refund Calculations Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: An institution must use the Return to Title IV refund calculation (34 CFR 668.22). Condition: We tested thirty-two drop students and found four incorrect refund calculations. We consider this finding to be a significant deficiency and is a repeat finding shown in Section IV of this report as prior year Finding 2022-006. Cause: The condition was caused by using incorrect charges in Step 5 of the Return to Title IV refund calculations. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $953 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $953 to the Department of Education, credit $3,569 to the students' accounts and increase controls over refunds. There is no liablity for the remaining $1,556, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2023-5- Incorrect Refund Calculations The Institute had not correctly calculated the Return-to-Title IV for four (4) students who had withdrawn from the Institute. A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned We will complete R2T4 Calculations correctly and return the unearned aid back to Dept of Education promptly. We have also moved all R2T4 calculation to a new third-party servicer as of 4/2024. We will be returning $953 to the Department of Education and crediting $3,569 to the students' accounts that were affected. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

2022-006

Finding 2023-006: Late Refunds Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: The Department of Education requires that all refunds be made within 45 days of a student’s withdrawal (34 CFR 668.22, 685.306). Condition: We tested thirty-two drop students in our sample and noted three late refunds. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-005. Cause: The condition was caused by oversights in the financial aid department. Effect: The result is the Institution retained funds which should have been returned to the Department of Education. Question Costs: $4,077 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution increase controls over refunds. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2023-6- Late Refunds of Title IV The Institute had not processed the Title IV refunds due within 45 days of DOD on three (3) students. A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned We have contracted with a new third-party servicer that will immediately take back funding once R2T4 is processed. This will remove the delay in communication from the accounting department to refund funding through manual process. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

2022-005

Finding 2023-007: Refunds made in Improper Sequence Compliance Requirement: Special Tests and Provisions (N.) - Return of Title IV Funds Criteria: Refunds made for withdrawn students must be returned in the sequence described in 34 CFR 668.22. Condition: We tested thirty-two drop students and and noted three refunds which were not refunded in the proper sequence. We consider this finding to be an instance of non-compliance. Cause: The condition was caused by applying the percentage of aid due back to all fund sources and not in the proper sequence described in 34 CFR 668.22. Effect: The result is the Institution refunded incorrect amounts to the Department of Education. Question Costs: $2,811 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $2,811 to the Department of Education, credit $2,563 to the students' accounts and increase controls over refunds. There is no liablity for the remaining $248, as this was due to overrefunding loans. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

FINDING 2023-7- Refund Made in Improper Sequence The Institute had incorrectly calculated the order in which Title IV refunds were to go back A.Comments on Findings and Recommendations: The Institute agrees with the finding and Auditor's recommendation. B.Actions Taken or Planned We have contracted with a new third-party servicer that will immediately process R2T4. This will remove any compliance issue with the order refunds. Previous FA admin whom assumed this role has been removed. We will be refunding $2,811 to the Department of Education and crediting $2,563 to the students' accounts that were affected. Signed Betsy Bremke, Administrative Campus Director Date: _3/29/2024__

Late notification to NSLDS

We have contacted our Title IV Servicer in regard to resolving this instance. We will work closely with our Servicer to avoid this type of error in the future.

Pell Grant incorrectly calculated

We have revised our method of requesting aid and the enrollment status of each student will be verified individually prior to requesting Pell.

Verification not completed

We will require all students to complete the appropriate verification form and will ensure that all necessary documentation is obtained to accompany the appropriate verification form.

Return to Title IV incorrectly calculated

We will complete R2T4 calculations timely and return the unearned aid back to Dept of Education promptly

Notifications to students for Direct loan refunds

We have revised the process of student notifications of disbursements. Each student whose account receives a disbursement or recovery will receive a Notice of Disbursement.