Audit 1049

FY End
2023-05-31
Total Expended
$40.96M
Findings
20
Programs
9
Organization: Faulkner University (AL)
Year: 2023 Accepted: 2023-10-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
519 2023-001 Significant Deficiency - N
520 2023-001 Significant Deficiency - N
521 2023-001 Significant Deficiency - N
522 2023-001 Significant Deficiency - N
523 2023-001 Significant Deficiency - N
524 2023-002 Significant Deficiency - N
525 2023-002 Significant Deficiency - N
526 2023-002 Significant Deficiency - N
527 2023-002 Significant Deficiency - N
528 2023-002 Significant Deficiency - N
576961 2023-001 Significant Deficiency - N
576962 2023-001 Significant Deficiency - N
576963 2023-001 Significant Deficiency - N
576964 2023-001 Significant Deficiency - N
576965 2023-001 Significant Deficiency - N
576966 2023-002 Significant Deficiency - N
576967 2023-002 Significant Deficiency - N
576968 2023-002 Significant Deficiency - N
576969 2023-002 Significant Deficiency - N
576970 2023-002 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $34.76M Yes 2
84.063 Federal Pell Grant Program $4.71M Yes 2
84.382 Strengthening Minority-Serving Institutions $602,055 - 0
84.033 Federal Work-Study Program $253,319 Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $244,612 Yes 2
84.031 Higher Education_institutional Aid $229,364 - 0
84.425 Education Stabilization Fund $94,279 - 0
84.038 Federal Perkins Loan Program $50,638 Yes 2
10.558 Child and Adult Care Food Program $16,005 - 0

Contacts

Name Title Type
X4N7WEDBEKK4 Jamie Horn Auditee
3343867168 Katie Schmidt Auditor
No contacts on file

Notes to SEFA

Title: Significant Accounting Policies Used in Preparing the SEFA NOTE 1 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Faulkner University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. De Minimis Rate Used: Y Rate Explanation: The University has selected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance for the Education Stabilization Fund. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Faulkner University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Title: Loan/loan guarantee outstanding balances Note 2 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Faulkner University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. De Minimis Rate Used: Y Rate Explanation: The University has selected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance for the Education Stabilization Fund. The University administers a Federal Perkins Loan Program (CFDA No. 84.038) funded by the United States Department of Education. At May 31, 2023, the loans receivable balance for the program totaled $50,638. Total program disbursements under the program for the year ended May 31, 2023 were $0 for student loans.
Title: Federal Direct Student Loans NOTE 3 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Faulkner University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. De Minimis Rate Used: Y Rate Explanation: The University has selected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance for the Education Stabilization Fund. Students of the University received $34,760,138 in new Federal Direct Student Loans (CFDA No. 84.268) during the year ended May 31, 2023. These loans were not made by the University.
Title: 10% De Minimis Cost Rate NOTE 4 Accounting Policies: The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Faulkner University (the University) under programs of the federal government for the year ended May 31, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations, Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Therefore, some amounts presented in the Schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University. De Minimis Rate Used: Y Rate Explanation: The University has selected to use the 10% de minimus indirect cost rate allowed under the Uniform Guidance for the Education Stabilization Fund. The University has elected to use the 10% de minimus indirect cost rate allowed under Uniform Guidance for the Education Stabilization Fund.

Finding Details

Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-001 - Special Tests and Provisions - Enrollment Reporting (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063 and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are repsonsible for accurate reporting. According to 34 CFR 685.309(2), the University is required to notifly the Department of Education via the NSLDS if a "student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended". Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of 25 students were selected from the population of all students who received federal student financial aid during the year ended May 31, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 4 out of the 25 students selected for Enrollment Reporting testing, the students were reported as withdrawn. However, per review of the student transcripts, those students attended and earned credit for the same semester. Therefore, the reporting to NSLDS was incorrect. For 1 out of the 25 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. Cause - The University's processes of internal controls for reporting enrollment information and to timely report student statuses to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the University revise it processes for reporting enrollment information and to timely report student status changes to NSLDS. The University should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. One way to do this is to update monthly reporting to National Student Clearinghouse when responding to the NSLDS roster files rather than every other month. Views of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.
Finding 2023-002 - Special Tests and Provisions - Disbursements (Noncompliance and Significant Deficiency) Indentification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.038, 84.063, and 84.268 Criteria - The University makes disbursements of federal student financial aid to students. Periodically, these disbursements result in a credit balance when the federal student financial aid exceeds the amount assessed to the student for allowable charges. According to 34 CFR 668.164(h), these credit balances "must be paid directly to the student or parent as soon as possible, but no later than 14 days after the balance occurred after the first day of class or 14 days after the first day of class if the credit balance occured on or before the first day of class". Condition - A sample of 40 students were selected from the population of all students who received a federal student financial aid disbursement by the University during the year ended May 31, 2023. We obtained the student records and tested the student's compliance with federal regulations for the specific loans and grants for which each individual student was disbursed. For 12 out of the 40 students selected, federal student aid was disbursed, creating a credit balance which was not refunded to the student with the 14 days requirement. Cause - The University's processes of internal controls in which to process refunds timely were not adequate. Effect - The University did not disburse refunds to students within the required timeframe. Recommendation - We recommend the University put into place processes to pull all credit balances as of a certain date, review the cause of those balances, and process the corresponding refunds timely. View of Responsible Officials - Management agrees with the finding.