OAK HILLS FELLOWSHIP, INC.

2021-001 Pell Awards Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants Federal Award Identification #: 20/21 Award Year Condition: The Fellowship did not properly award Pell for distance education/modular students when the student had enrollment changes in the term. Criteria: 34CFR 690.63 Questioned Costs: $910 Context: In the eligibility, disbursement and withdrawal testing, out of 3 distance education students tested, all 3 had Pell awarding errors. 1 student was over awarded Pell by $763, 1 student was under awarded Pell by $763, and 1 student was awarded at full time but then ended up withdrawing from the 1st module. For this student, Pell was not recalculated to less than 1/2 time prior to the R2T4, so the student was still over awarded by $117. The total number of Pell students tested was 13, 10 of which were traditional students and 3 distance education students. Cause: The Fellowship is not properly monitoring distance education activity in its modular program. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: not applicable Recommendation: We recommend that attendance in each module be confirmed by an academic related activity and financial aid office be notified so that appropriate changes to Pell awards can be made timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Finding Number: 2021-001 Planned Corrective Action: Prior to the beginning of each term the Director of Distance Education will provide the start date and drop date for each online session. Those dates will be posted on a shared calendar. The name of each online degree seeking student will be placed on a spreadsheet shared in Google Drive. The spreadsheet will be updated as students add or drop classes using an agreed upon color code. The Director of Distance Education will also notify the Business Office Manager and the Financial Aid Director of the addition or drop of a class by email. Pell will be requested by the Financial Aid Director for each session that the online degree seeking student begins successfully. Person Responsible for Corrective Action Plan: Director of Distance Education ? provide start and drop date, list of students for each session, notification of any changes Financial Aid Director ? check information prior to requesting Pell Grant, request Pell Grant, correspond with other departments Business Office Manager ? update spreadsheet as needed, check information, communicate with Financial Aid Director to check accuracy Anticipated Date of Completion: End of Spring 2022 Term

2019-001 Exit Counseling Significant Deficiency DEPARTMENT OF EDUCATION CFDA #: 84.268 Federal Direct Loan Program Federal Award Identification #: 18/19 Award Year Condition: The Fellowship did not retain evidence of providing exit counseling to all students who withdrew from the Fellowship. Criteria: 34 CFR 685.304(b) Questioned Costs: $-0- Context: In our eligibility and disbursement testing of 19 students, five students exited the Fellowship. Of the five students who exited the Fellowship, three students did not have evidence of exit counseling in the student file. The Fellowship subsequently notified these three students in case they had been missed. Effect: Documentation of exit counseling was not available. Exit counseling information assists in reducing the default rate of the Fellowship. Cause: Exit counseling information was not appropriately provided to the students. Identification as repeat finding, if applicable: Not Applicable Recommendation: We recommend the Fellowship develop a process to insure that exit counseling information is provided to students. Views of Responsible Officials: Management is in agreement with the finding and is in the process of addressing the issue. See attached corrective action plan.

Finding Number: 2019-001 Exit Counseling Planned Corrective Action: 1. The Exit Counseling information page will be given to the student at the time of obtaining departure signatures. 2. When feasible, Exit Counseling will be offered in the Financial Aid Director's office using the NSLDS Loan Exit Counseling service. 3. When this is not possible, Exit Counseling information will be sent to the student via email and letter within 7-10 days. 4. All actions will be documented in the student's e-file. 5. When the Exit Counseling has been completed and the department notified, the completed copy of the Exit Counseling will be added to the student's e-file, as well as documented in the financial aid system. Person Responsible for Corrective Action Plan: Financial Aid Director Anticipated Date of Completion: Exit Counseling information will be added to the Departure Form by 2020.01.13. All other items listed are to be implemented immediately.

2019-002 Federal Direct Loan Eligibility Significant Deficiency DEPARTMENT OF EDUCATION CFDA #: 84.268 Federal Direct Loan Program Federal Award Identification #: 18/19 Award Year Condition: As part of the need analysis process it was noted that students were not always awarded the correct amount of subsidized and unsubsidized federal direct loans (FDL) based on eligibility. Criteria: 334 CFR 685.200 (a) & (v), 34 CFR 685.203 Questioned Costs: $1,000 Context: Out of 19 students, 1 student under awarded $5,500 in subsidized loans based on an inaccurate need analysis. The total loans awarded were accurate but the allocation between subsidized and unsubsidized loans was not. 1 student was over awarded $1,000 in subsidized loans based on grade level. Effect: Student not awarded FDL based on need and eligibility. Cause: Reliance on financial aid system to accurately award students. Also, using ISIR self-reported year of enrollment instead of using transcripts. Identification as repeat finding, if applicable: Not Applicable Recommendation: We recommend the Fellowship add a review procedure to verify that the financial aid awarding software used is accurately awarding aid. Views of Responsible Officials: Management is in agreement with the finding and is in the process of addressing the issue. See attached corrective action plan.

Finding Number: 2019-002 Federal Direct Loan Eligibility Planned Corrective Action: 1. When awarding, the system will not be relied on to accurately award students. All aid will be double checked with the Federal Student Aid Pell table and loan limits for accuracy. This is to avoid eligible students being deprived of Title N funds in the future, or being over-awarded. 2. When awarding, the ISIR self-reported year of enrollment will not be used. All year of enrollment used to base FDL will be from actual transcripts. Person Responsible for Corrective Action Plan: Financial Aid Director Anticipated Date of Completion: Corrective Action will be in affect with the awarding of the Spring 2020 aid.