Audit 25383

FY End
2022-06-30
Total Expended
$8.82M
Findings
36
Programs
7
Organization: Washington Adventist University (MD)
Year: 2022 Accepted: 2023-03-30

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
29574 2022-001 - - N
29575 2022-002 - - N
29576 2022-001 - - N
29577 2022-002 - - N
29578 2022-001 - - N
29579 2022-002 - - N
29580 2022-001 - - N
29581 2022-002 - - N
29582 2022-001 - - N
29583 2022-002 - - N
29584 2022-001 - - N
29585 2022-002 - - N
29586 2022-001 - - N
29587 2022-002 - - N
29588 2022-001 - - N
29589 2022-002 - - N
29590 2022-003 Significant Deficiency - L
29591 2022-003 Significant Deficiency - L
606016 2022-001 - - N
606017 2022-002 - - N
606018 2022-001 - - N
606019 2022-002 - - N
606020 2022-001 - - N
606021 2022-002 - - N
606022 2022-001 - - N
606023 2022-002 - - N
606024 2022-001 - - N
606025 2022-002 - - N
606026 2022-001 - - N
606027 2022-002 - - N
606028 2022-001 - - N
606029 2022-002 - - N
606030 2022-001 - - N
606031 2022-002 - - N
606032 2022-003 Significant Deficiency - L
606033 2022-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $4.38M Yes 2
84.425 Education Stabilization Fund $1.55M Yes 1
84.063 Federal Pell Grant Program $1.47M Yes 2
84.038 Federal Perkins $761,575 Yes 2
84.007 Federal Supplemental Educational Opportunity Grants $95,661 Yes 2
84.033 Federal Work-Study Program $87,676 Yes 2
93.364 Nursing Student Loans $50,104 Yes 2

Contacts

Name Title Type
YMP8VGL4TMK8 Ron Somervell Auditee
3018914077 Ben D Kochenower Auditor
No contacts on file

Notes to SEFA

Title: Loan/loan guarantee outstanding balances Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared in accordance with the basis of accounting practices prescribed by the United States Department of Education. The purpose of the statement is to present, in summary form, activities of Washington Adventist University for the year ended June 30, 2022, which have been financed by the U.S. Department of Education and other federal agencies as applicable. Except as described in the following paragraph, accounting principles generally accepted in the United States of America are in agreement with the accounting practices prescribed for such programs by the Department of Education's fiscal control and fund accounting procedures.The prescribed practices for the Perkins Program and the Nursing Student Loan Program do not provide for accrual of interest on student loans receivable or for a provision of allowance for doubtful loans. Accordingly, interest on loans is recorded as received and uncollectible loans are not recognized until the loans are canceled or written-off in conformity with applicable program requirements. These practices do not conform with accounting principles generally accepted in the United States of America.Because the statement presents only a selected portion of the activities of the University, it is not intended to and does not present either the financial position, changes in net assets or the revenues, expenses, and other changes in net assets of the University.The University has not elected to use the 10% de minimis cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. FEDERAL PERKINS LOAN PROGRAM (84.038) - Balances outstanding at the end of the audit period were 713,353. NURSING STUDENT LOANS (93.364) - Balances outstanding at the end of the audit period were 50104.
Title: FEDERAL LOAN PROGRAMS Accounting Policies: The accompanying Schedule of Expenditures of Federal Awards has been prepared in accordance with the basis of accounting practices prescribed by the United States Department of Education. The purpose of the statement is to present, in summary form, activities of Washington Adventist University for the year ended June 30, 2022, which have been financed by the U.S. Department of Education and other federal agencies as applicable. Except as described in the following paragraph, accounting principles generally accepted in the United States of America are in agreement with the accounting practices prescribed for such programs by the Department of Education's fiscal control and fund accounting procedures.The prescribed practices for the Perkins Program and the Nursing Student Loan Program do not provide for accrual of interest on student loans receivable or for a provision of allowance for doubtful loans. Accordingly, interest on loans is recorded as received and uncollectible loans are not recognized until the loans are canceled or written-off in conformity with applicable program requirements. These practices do not conform with accounting principles generally accepted in the United States of America.Because the statement presents only a selected portion of the activities of the University, it is not intended to and does not present either the financial position, changes in net assets or the revenues, expenses, and other changes in net assets of the University.The University has not elected to use the 10% de minimis cost rate. De Minimis Rate Used: N Rate Explanation: The auditee did not use the de minimis cost rate. The University has students who have been approved loans which were received by those students during the current year. The University is not the lender of the loans, it only processes them for the lender the student chooses. See the Notes to the SEFA for the totals and types of loans received for the current fiscal year. See the Notes to the SEFA for the campus-based federal program administered by the University. The Schedule of Expenditures of Federal Awards only includes the prior year end outstanding loan balance plus the current year loans made of the Federal Perkins Loan Program and any new capital contribution. See the Notes to the SEFA. The total of loan fund expenditures and disbursements of the Departments of Health and Human Services' and Education's Student Financial Assistance Program for the fiscal year.

Finding Details

DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- COVID-19 Higher Education Emergency Relief Fund (HEERF COMPLIANCE and INTERNAL CONTROL FINDING 2022-003 Condition: The University was not able to provide all supporting documentation for the HEERF annual report that was submitted to the Department of Education for calendar year 2021. Criteria The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. While ARP does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, ED exercises this reporting authority under 2 CFR section 200.328 and 2 CFR section 200.329. Cause: The University experienced turn-over in personnel responsible for performing the periodic and annual reporting for the HEERF funding requirements and the responsibilities were not properly communicated during the transition. Effect: The University did not have the appropriate support and source documentation to substantiate the information contained in the annual report. Recommendation: We recommend that the University maintain a file for all periodic and annual reporting to contain and preserve all supporting information and documentation to back up the number and disclosures in each report. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- COVID-19 Higher Education Emergency Relief Fund (HEERF COMPLIANCE and INTERNAL CONTROL FINDING 2022-003 Condition: The University was not able to provide all supporting documentation for the HEERF annual report that was submitted to the Department of Education for calendar year 2021. Criteria The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. While ARP does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, ED exercises this reporting authority under 2 CFR section 200.328 and 2 CFR section 200.329. Cause: The University experienced turn-over in personnel responsible for performing the periodic and annual reporting for the HEERF funding requirements and the responsibilities were not properly communicated during the transition. Effect: The University did not have the appropriate support and source documentation to substantiate the information contained in the annual report. Recommendation: We recommend that the University maintain a file for all periodic and annual reporting to contain and preserve all supporting information and documentation to back up the number and disclosures in each report. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- Student Financial Aid Cluster COMPLIANCE FINDING 2022-001- Special Test and Provisions Based on a sample size of 40 students Condition: It appears that the University reported inaccurate enrollment statuses to The National Student Loan Data System (NSLDS) for two students. The students graduated from the University in the fall 2021 term but were reported as withdrawn to NSLDS. Criteria A participating school shall establish and maintain proper administrative and fiscal procedures and all necessary records as set forth in this part and in 34 C.F.R. part 668; and submit all reports required by this part and 34 C.F.R. part 668 to the Secretary. 34 C.F.R. ? 685.309(a). Regulations require that upon receipt of an enrollment report from the Secretary or a similar report from any guaranty agency, an institution must complete and return that report within 30 days of receipt and, unless it expects to submit its next enrollment report to the Secretary within the next 60 days, notify the Secretary within 30 if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at the school but has ceased to be enrolled on at least a half-time, has been accepted for enrollment at the school but failed to enroll on at least a half-time basis for the period for which the loan was intended, or has changed his or her permanent address. 34 C.F.R. ?685.309 (b)(2)(i)(ii) Cause: The University experienced a cyber-attack during the fall 2021 semester, and as a result, portions of the National Student Clearing House reporting was affected. Resulting in inaccurate data being reported to NSLDS. Effect: Enrollment reporting is critical for the effective administration of Federal loans and the accuracy of student loan records depends heavily on the information reported by the institution. An institution is ultimately responsible for timely and accurate reporting. An institution?s failure to report student enrollment status data timely and accurately to NSLDS may delay or prevent the student?s eligibility for deferments, grace periods, repayments, and the payment of interest subsidies. Recommendation: We recommend for the University to put in place a plan of action to mitigate the risk of incorrect enrollment reporting to NSLDS. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
COMPLIANCE FINDING 2022-002- Special Test and Provisions Based on a sample of 6 students Condition: It appears that the University did not send exit counseling communication to two students within 30 days of determining that the student borrower was graduating in the fall 2021 term. Criteria A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan borrower shortly before the student borrower ceases at least half-time study at the school. 34 C.F.R. ? 685.304 (b)(1). If a student borrower withdraws from school without the school?s prior knowledge or fails to complete the exit counseling as required, exit counseling must, within 30 days after the school learns that the student borrower has withdrawn from school or failed to complete the exit counseling as required, be provided either through interactive electronic means, by mailing written counseling materials to the student borrower at the student borrower?s last known address, or by sending written counseling materials to an email address provided by the student borrower that is not an email address associated with the school sending the counseling materials. 34 C.F.R. ? 685.304 (b)(3). Cause: Due to the ransomware attack to the University?s system management was not able to access the system and student records in order to email exit counseling notifications to students within the required time frame, approximate to their graduation dates. Effect: An institution?s failure to provide loan counseling to students in accordance with the Federal regulations may result in increased student loan defaults and cause increased expense for the Department. Recommendation: We recommend that the University put in place a plan of action to ensure exit counseling notifications are sent to students in a timely manner. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- COVID-19 Higher Education Emergency Relief Fund (HEERF COMPLIANCE and INTERNAL CONTROL FINDING 2022-003 Condition: The University was not able to provide all supporting documentation for the HEERF annual report that was submitted to the Department of Education for calendar year 2021. Criteria The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. While ARP does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, ED exercises this reporting authority under 2 CFR section 200.328 and 2 CFR section 200.329. Cause: The University experienced turn-over in personnel responsible for performing the periodic and annual reporting for the HEERF funding requirements and the responsibilities were not properly communicated during the transition. Effect: The University did not have the appropriate support and source documentation to substantiate the information contained in the annual report. Recommendation: We recommend that the University maintain a file for all periodic and annual reporting to contain and preserve all supporting information and documentation to back up the number and disclosures in each report. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan
DEPARTMENT OF EDUCATION- COVID-19 Higher Education Emergency Relief Fund (HEERF COMPLIANCE and INTERNAL CONTROL FINDING 2022-003 Condition: The University was not able to provide all supporting documentation for the HEERF annual report that was submitted to the Department of Education for calendar year 2021. Criteria The CARES Act 18004(e) and the CRRSAA 314(e) requires an institution receiving funds under HEERF I and HEERF II to submit a report to the secretary, at such time in such a manner as the secretary may require. While ARP does not explicitly identify procedures by which institutions must report on their uses of HEERF grant funds, ED exercises this reporting authority under 2 CFR section 200.328 and 2 CFR section 200.329. Cause: The University experienced turn-over in personnel responsible for performing the periodic and annual reporting for the HEERF funding requirements and the responsibilities were not properly communicated during the transition. Effect: The University did not have the appropriate support and source documentation to substantiate the information contained in the annual report. Recommendation: We recommend that the University maintain a file for all periodic and annual reporting to contain and preserve all supporting information and documentation to back up the number and disclosures in each report. Views of Responsible Officials and Planned Corrective Actions ? See Corrective Action Plan