State auditors in Ohio concluded that Eastern Gateway Community College showed “derelict accounting and controls” in the period before its closure, flagging $17.3 million of federal student aid as insufficiently accounted for and detailing pervasive recordkeeping and governance failures. The audit cataloged missing documentation, unjustified spending and absence of written spending policies. The department’s report follows the Education Department’s previous actions that restricted the college’s free‑college program and limited Title IV eligibility. Eastern Gateway’s enrollment collapse and eventual shutdown were compounded by federal compliance measures, auditors said. The finding signals intensified state and federal scrutiny of community colleges’ financial controls. Chief financial officers, auditors and trustees at similar institutions should expect demand for tighter documentation, stronger internal controls and readiness for compliance reviews tied to federal funding.