In this chapter, the following terms have the meanings indicated. Terms Defined. “Auditor” means an independent certified public accountant. “Commission” means the Maryland Higher Education Commission. “EEA Program” means the Howard P. Rawlings Educational Excellence Awards Program under Education Article, §§18-301 — 18-310, Annotated Code of Maryland. “OSFA” means the Office of Student Financial Assistance within the Commission. “Secretary” means the Secretary of Higher Education for the State of Maryland. This chapter applies to financial aid awards under the EEA Program. The purpose of this chapter is to provide for the independent audit of awards made under the EEA Program. Beginning in fiscal year 2019, each institution of higher education that enrolls students who participate in the EEA Program shall procure annually an independent audit of the institution’s implementation of the EEA Program. The institution shall submit each audit to the Commission in accordance with Regulation .04 of this chapter. The audit required by Regulation .03 of this chapter shall be conducted in accordance with the standards of the American Institute of Certified Public Accountants, and in compliance with generally accepted auditing standards. The audit shall determine whether and to what extent the institution has complied with the statutory and regulatory requirements of the EEA Program during the fiscal year. In determining EEA Program compliance under §B of this regulation, the audit shall assess the following factors as they relate to the EEA Program: Compliance with federal regulations of institutional policies and procedures regarding satisfactory academic progress (SAP), housing, and Title IV financial aid verification requirements; Compliance with State residency requirements; Compliance with the institution’s enrollment and credit completion requirements; Accuracy of award eligibility determination performed by the institution; Adequacy of reporting by the institution to the Office in the Institutional Student Information Record; Estimation of State awards disbursed by the institution; Verification of completed and signed Maryland College Aid Processing System (MDCAPS) Individual User Agreements; and For institutions that elect to verify GA applicant eligibility under Education Article, §18-303.3, Annotated Code of Maryland, and COMAR 13B.08.10.13B, compliance with: The requirements of the VI standard Title IV financial aid verification process; and COMAR 13B.08.10.13B(7)—(18). The audit report shall provide: Detail of discrepancies and the nature of noncompliant student records identified during review; Recommendations provided to the institution to resolve findings; and The total amount of award payments that were made improperly by the institution. The auditor shall issue a management letter to the institution, which shall contain a listing of all material weaknesses in the institution’s system of internal controls. By June 1 of each year, a copy of the audit, the management letter, and the institution’s response to each item in the management letter shall be filed with the Commission. The Commission may request additional information from the auditor or from the institution. Noncompliance with the auditor’s recommendations shall be noted in future management letters and may result in payment remittance required of the institution as determined by the Commission. A written request for an extension of time to file the required reports and the management letter shall be received by the Commission no later than 30 days before the original due date as noted in Regulation .04 of this chapter. A request for a reasonable extension of time may be granted by the Secretary if: Detailed reasons are stated that indicate why the reporting deadline cannot be met; The request indicates the estimated date the audit will be completed and the report filed; and The request is signed by the president of the college. Except as set forth in §B of this regulation, the Commission shall require an institution to return to the Commission any overpayments of EEA Program funds that were not awarded and paid consistent with statute and regulation. For institutions that elect to verify GA applicant eligibility under Education Article, §18-303.3, Annotated Code of Maryland, and COMAR 13B.08.10.13B, overpayments of EEA Program funds arising from a verification made under this election shall be paid by the institution that made the verification, regardless of what school the student attends. Except as provided in §D of this regulation, the institution may elect to remit payment to the Commission in one of the following ways: A check payable to the Maryland Higher Education Commission; Electronic Funds Transfer (EFT); or Deduction from the initial payment from the Commission to the institution in the subsequent award year. If the return of funds relates to the Campus Based EEA Program, then the institution shall return the funds to the Commission by check. The Commission may discontinue an institution’s eligibility to participate in the EEA Program if the institution fails to return funds pursuant to §A of this regulation within the time frame specified by the Commission. Education Article, §§11-105(u), 18-204(c), and 18-307, Annotated Code of Maryland Effective date: July 30, 2018 (45:15 Md. R. 727) Regulation .04C amended effective June 28, 2021 (48:13 Md. R. 509) Regulation .06 amended effective June 28, 2021 (48:13 Md. R. 509)