The Commission and the community colleges shall annually reconcile the allocated funds in a form and manner prescribed by the Commission. All Scholarship Program funds that were not awarded by a community college by the end of the State fiscal year shall be returned to the Commission by a date established by the Commission. A community college shall annually provide to the Commission by June 1 an independent audit of their administration of the Scholarship Program during the prior State fiscal year. The audit: Shall be conducted in accordance with the standards of the American Institute of Certified Public Accountants and in compliance with generally accepted auditing standards; Shall determine whether and to what extent the institution has complied with the statutory and regulatory requirements of the Scholarship Program; Shall assess: Accuracy of award eligibility determination performed by the institution for both initial and renewal awards; Compliance with federal regulations and guidelines relating to income verification; Adequacy of reporting by the institution to the Commission in the ISIR; and Accuracy of award amount calculations and disbursements to student accounts; and Shall include a management letter from the auditor to the institution containing a list of all material weaknesses in the institution’s system of internal controls and the institution’s response to each item set forth in the management letter. An institution’s independent auditor may include results of multiple State financial assistance program audits in one report. If the Commission finds, through the audit or another method, that the community college made an award to an ineligible student or the award amount was calculated incorrectly, the community college shall remit the amount of that award to the Commission, and may not require repayment of the amount from the student or from any third party on behalf of the student. If a community college does not timely return or remit funds as required by this regulation or fails to comply with an auditor’s recommendations prior to the next audit, the Commission may: Delay a subsequent year’s disbursement until the unreturned or unremitted funds have been paid to the Commission; or Suspend participation by the institution in the Scholarship Program until the funds have been remitted or the institution has come into compliance, as applicable.