Audit 291473

FY End
2023-06-30
Total Expended
$73.19M
Findings
10
Programs
70
Organization: Lehigh University (PA)
Year: 2023 Accepted: 2024-02-21
Auditor: Kpmg LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
369978 2023-001 Significant Deficiency - L
369979 2023-002 Significant Deficiency - N
369980 2023-002 Significant Deficiency - N
369981 2023-002 Significant Deficiency - N
369982 2023-003 Significant Deficiency - L
946420 2023-001 Significant Deficiency - L
946421 2023-002 Significant Deficiency - N
946422 2023-002 Significant Deficiency - N
946423 2023-002 Significant Deficiency - N
946424 2023-003 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $23.56M Yes 1
84.063 Federal Pell Grant Program $5.59M Yes 2
84.425 Education Stabilization Fund $3.27M Yes 1
84.324 Research in Special Education $1.59M - 0
84.038 Federal Perkins Loan Program $1.03M Yes 1
84.033 Federal Work-Study Program $709,698 Yes 0
12.800 Air Force Defense Research Sciences Program $577,185 - 0
84.007 Federal Supplemental Educational Opportunity Grants $557,514 Yes 0
11.478 Center for Sponsored Coastal Ocean Research_coastal Ocean Program $525,535 - 0
45.130 Promotion of the Humanities_challenge Grants $477,535 - 0
47.075 Social, Behavioral, and Economic Sciences $463,249 - 0
93.173 Research Related to Deafness and Communication Disorders $414,230 - 0
81.117 Energy Efficiency and Renewable Energy Information Dissemination, Outreach, Training and Technical Analysis/assistance $378,618 - 0
81.089 Fossil Energy Research and Development $298,785 - 0
81.135 Advanced Research Projects Agency - Energy $272,052 - 0
20.701 University Transportation Centers Program $246,490 - 0
47.074 Biological Sciences $229,484 - 0
81.087 Renewable Energy Research and Development $212,347 - 0
93.350 National Center for Advancing Translational Sciences $187,487 - 0
93.279 Drug Abuse and Addiction Research Programs $184,124 - 0
93.310 Trans-Nih Research Support $178,206 - 0
93.855 Allergy, Immunology and Transplantation Research $168,671 - 0
19.009 Academic Exchange Programs - Undergraduate Programs $166,223 - 0
93.867 Vision Research $156,868 - 0
81.049 Office of Science Financial Assistance Program $156,092 - 0
93.865 Child Health and Human Development Extramural Research $133,236 - 0
15.506 Water Desalination Research and Development Program $111,449 - 0
10.310 Agriculture and Food Research Initiative (afri) $109,161 - 0
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $108,973 - 0
20.931 Transportation Planning, Research and Education $88,337 - 0
47.079 Office of International Science and Engineering $80,290 - 0
12.002 Procurement Technical Assistance for Business Firms $77,092 - 0
47.050 Geosciences $66,105 - 0
59.037 Small Business Development Centers $65,819 - 0
11.011 Ocean Exploration $65,352 - 0
45.161 Promotion of the Humanities_research $64,095 - 0
14.228 Community Development Block Grants/state's Program and Non-Entitlement Grants in Hawaii $58,750 - 0
47.041 Engineering $57,396 - 0
43.001 Science $52,563 - 0
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $52,467 - 0
84.305 Education Research, Development and Dissemination $51,938 - 0
93.185 Immunization Research, Demonstration, Public Information and Education_training and Clinical Skills Improvement Projects $49,830 - 0
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $48,342 - 0
12.431 Basic Scientific Research $48,125 - 0
81.057 University Coal Research $45,469 - 0
93.395 Cancer Treatment Research $44,050 - 0
16.560 National Institute of Justice Research, Evaluation, and Development Project Grants $41,109 - 0
93.839 Blood Diseases and Resources Research $39,484 - 0
47.084 Nsf Technology, Innovation, and Partnerships $39,092 - 0
47.049 Mathematical and Physical Sciences $36,801 - 0
93.866 Aging Research $35,884 - 0
15.810 National Cooperative Geologic Mapping Program $26,966 - 0
10.001 Agricultural Research_basic and Applied Research $25,236 - 0
45.301 Museums for America $24,461 - 0
47.083 Integrative Activities $24,231 - 0
93.273 Alcohol Research Programs $23,309 - 0
59.075 Shuttered Venue Operators Grant Program $23,164 - 0
47.070 Computer and Information Science and Engineering $23,151 - 0
19.900 Aeeca/esf Pd Programs $23,116 - 0
93.121 Oral Diseases and Disorders Research $18,648 - 0
93.307 Minority Health and Health Disparities Research $17,676 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $13,700 - 0
43.008 Education $11,736 - 0
45.312 National Leadership Grants $11,357 - 0
93.600 Head Start $7,394 - 0
93.859 Biomedical Research and Research Training $5,015 - 0
12.300 Basic and Applied Scientific Research $3,962 - 0
11.303 Economic Development_technical Assistance $3,772 - 0
45.160 Promotion of the Humanities_fellowships and Stipends $2,819 - 0
47.076 Education and Human Resources $354 - 0

Contacts

Name Title Type
E13MDBKHLDB5 Steven Crouch Auditee
6107583205 Eric J. Forkner Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the Schedule for COVID 19: Higher Education Emergency Relief Fund - Institutional Portion represents the expenditures and/or lost revenues incurred in prior years. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (Schedule) includes the federal award activity of Lehigh University (the University) under programs of the federal government for the year ended June 30, 2023 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). 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. The Schedule does not present the activity for the University’s subsidiary Manufacturers Resource Center that expended $645,876 in federal awards for the year ended June 30, 2023. The financial statements of Manufacturers Resource Center is audited separately and did not meet the Uniform Guidance threshold to require a separate compliance audit of its federal expenditures for the year ended June 30, 2023.
Title: Federal Perkins Loan Program Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the Schedule for COVID 19: Higher Education Emergency Relief Fund - Institutional Portion represents the expenditures and/or lost revenues incurred in prior years. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Perkins loans are administered directly by the University, and balances and transactions relating to Perkins loans are included in the University’s consolidated financial statements. Perkins loan expenditures reported on the Schedule include the balance of outstanding loans at June 30, 2022, and the administrative cost allowance claimed during the year ended June 30, 2023 of $105,865. The outstanding balance of Federal Perkins Loans at June 30, 2023 was $577,904. There were no federal or institutional capital contributions to the Perkins revolving loan fund for the year ended June 30, 2023.
Title: Direct Loans Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the Schedule for COVID 19: Higher Education Emergency Relief Fund - Institutional Portion represents the expenditures and/or lost revenues incurred in prior years. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Direct Loans are made by the Secretary of Education, and therefore balances and transactions relating to Direct Loans are not included in the University’s consolidated financial statements. The University is responsible for the performance of certain administrative duties under the Direct Loan program, including origination and disbursement of loans. The Schedule includes the amounts loaned to students during the year ended June 30, 2023. It is not practical to estimate the outstanding balance of loans under this program.
Title: 2023 Program Expenditures Incurred in Prior Years Accounting Policies: Expenditures reported on the Schedule, except for the program expenditures described in the following paragraph, are reported on the accrual basis of accounting. Such expenditures are recognized following, as applicable, either the cost principles in Office of Management and Budget Circular A-21, Cost Principles for Educational Institutions, or the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Expenditures reported on the Schedule for COVID 19: Higher Education Emergency Relief Fund - Institutional Portion represents the expenditures and/or lost revenues incurred in prior years. De Minimis Rate Used: N Rate Explanation: The University has not elected to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. During the year ended June 30, 2023, the Department of Education awarded to the University federal funding obligated in 2023 for various COVID-19 expenditures that were incurred in prior years as outlined in the following table: See the Notes to the SEFA for the chart/table.

Finding Details

Finding 2023-001; Federal Agency: U.S Department of Education; Program Name: COVID-19: Higher Education Emergency Relief Fund; Assistance Listing Number: 84.425F; Federal Award Year: Funding periods between April 28, 2020 through June 30, 2023; Compliance Requirement: Reporting; Finding Type: Significant Deficiency; Criteria: On July 17, 2022, Department of Education (ED) announced an updated format for the HEERF Quarterly Reporting effective for Q2 2022, report to be posted July 10, 2022. The quarterly reporting requirements involved publicly posting completed forms conspicuously on the institution’s website. The report must be updated no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, June 30). Condition, including perspective: Our procedures discovered that reports filed by Lehigh during the current fiscal year were not filed using the updated format published by the Department of Education. The University submitted its quarterly reports timely, however the reports were using an outdated format that did not have the data elements required in the new reporting format. We compared the information reported by the University to the updated reporting format and noted that the reports filed by Lehigh did not contain the information required in the updated reporting format. Additionally, the information was presented on an aggregate spending basis as opposed to a per quarter spending basis. Therefore, the reports did not accurately present the information; however, the total expenditures agreed to the quarter expenditures and were supportable. Cause and Effect: University personnel responsible for HEERF reporting failed to review updated supplemental information and guidance published by the Department of Education to ensure that the University was reporting all of the required information by using the updated reporting template for all quarterly reports submitted. As a result, certain information was not reported to the Department of Education or included on the University’s website. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that Lehigh University strengthen its process and controls to ensure that they review updates provided by the awarding agency in order to ensure that they comply with the supplemental requirements for each of its federal programs. Views of Responsible Officials: Lehigh University accepts this finding. The University will coordinate with HEERF regarding resubmission of the FY23 expense reports using the correct reporting template to accurately present all required information. Lehigh notes that this finding is the result of staff oversight. We are committed to strengthening our training and supervision of staff entrusted with compliance.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
2023-003; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.063; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 690.83, all schools receiving Pell grant must submit Pell payment data to the Department through the Common Origination and Disbursement (COD) System Origination. Records can be sent well in advance of any disbursements, as early as the school chooses to submit them for any student the school reasonably believes will be eligible for a payment. Institutions must report student payment data within 15 calendar days after the school makes a payment; or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Schools may do this by reporting once every 15 calendar days, bi-weekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Condition, including Perspective: For 29 of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of Pell disbursements to the COD, the student’s Pell disbursement was not reported within 15 calendar days of when the disbursement was made to the students. Cause and Effect: During the beginning of the fall semester, the University implemented various system patches that impacted the timely reporting of certain batched information containing student disbursement data to be submitted to COD. While the University did identify the issue timely due to the related system changes they were unable to submit student disbursement information to the COD within the required 15 days of disbursement. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhances its current policies and procedures to ensure the timely reporting of Pell disbursements to COD. Views of Responsible Officials: Lehigh University accepts this finding. We are aware of the 15 calendar day requirement and have always met the deadline. Failure to report Pell Grant disbursements within 15 days in August of 2022 was the result of a well documented Ellucian defect that denied Lehigh the ability to obtain the required data from our Banner system. By the time Lehigh received a patch from Ellucian, we had missed the 15 day window. Ellucian acknowledged the bug and Lehigh accepted that it was an anomaly.
Finding 2023-001; Federal Agency: U.S Department of Education; Program Name: COVID-19: Higher Education Emergency Relief Fund; Assistance Listing Number: 84.425F; Federal Award Year: Funding periods between April 28, 2020 through June 30, 2023; Compliance Requirement: Reporting; Finding Type: Significant Deficiency; Criteria: On July 17, 2022, Department of Education (ED) announced an updated format for the HEERF Quarterly Reporting effective for Q2 2022, report to be posted July 10, 2022. The quarterly reporting requirements involved publicly posting completed forms conspicuously on the institution’s website. The report must be updated no later than 10 days after the end of each calendar quarter (September 30, December 31, March 31, June 30). Condition, including perspective: Our procedures discovered that reports filed by Lehigh during the current fiscal year were not filed using the updated format published by the Department of Education. The University submitted its quarterly reports timely, however the reports were using an outdated format that did not have the data elements required in the new reporting format. We compared the information reported by the University to the updated reporting format and noted that the reports filed by Lehigh did not contain the information required in the updated reporting format. Additionally, the information was presented on an aggregate spending basis as opposed to a per quarter spending basis. Therefore, the reports did not accurately present the information; however, the total expenditures agreed to the quarter expenditures and were supportable. Cause and Effect: University personnel responsible for HEERF reporting failed to review updated supplemental information and guidance published by the Department of Education to ensure that the University was reporting all of the required information by using the updated reporting template for all quarterly reports submitted. As a result, certain information was not reported to the Department of Education or included on the University’s website. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No Recommendation: We recommend that Lehigh University strengthen its process and controls to ensure that they review updates provided by the awarding agency in order to ensure that they comply with the supplemental requirements for each of its federal programs. Views of Responsible Officials: Lehigh University accepts this finding. The University will coordinate with HEERF regarding resubmission of the FY23 expense reports using the correct reporting template to accurately present all required information. Lehigh notes that this finding is the result of staff oversight. We are committed to strengthening our training and supervision of staff entrusted with compliance.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
Finding 2023-002; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.038/84.063/84.268; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Enrollment Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 674.19 for Federal Perkins Loans, 34 CFR Section 690.83 (b)(2) for Pell, 34 CFR Section 685.309 for Direct Loans, a student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to loan holders by the Department of Education. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Condition including perspective: For three out of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of students enrollment status change to NSLDS, the students status change was not reported to the National Student Loan Data System (NSLDS) within 60 days after the University was made aware of the students status change effective date. Cause and Effect: The University did not have sufficient controls in place to ensure timely reporting to the National Student Clearing House (NSC). As a result of that the information would not be transmitted timely to the NSLDS which would impact information regarding the status of students with federal loans. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhance its current policies and procedures to reasonably ensure student status changes are reported within the appropriate time requirements. Views of Responsible Officials: Lehigh University accepts this finding. The training of new staff is always a priority, but this finding is the result of unusual turnover. Staff are now sufficiently trained on this issue. They run a weekly report to identify students who have withdrawn or have otherwise changed their attendance level. New staff are now fully trained in updating the NSLDS with student enrollment status changes.
2023-003; Federal Agency: U.S Department of Education; Program Name: Student Financial Assistance Cluster; Assistance Listing Number: 84.063; Federal Award Year: Funding periods between July 1, 2022 and June 30, 2023; Compliance Requirement: Reporting; Finding Type: Significant Deficiency; Criteria: As described in 34 CFR Section 690.83, all schools receiving Pell grant must submit Pell payment data to the Department through the Common Origination and Disbursement (COD) System Origination. Records can be sent well in advance of any disbursements, as early as the school chooses to submit them for any student the school reasonably believes will be eligible for a payment. Institutions must report student payment data within 15 calendar days after the school makes a payment; or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Schools may do this by reporting once every 15 calendar days, bi-weekly or weekly or may set up their own system to ensure that changes are reported in a timely manner. Condition, including Perspective: For 29 of the 40 students sampled for testing the timeliness and accuracy of the University’s reporting of Pell disbursements to the COD, the student’s Pell disbursement was not reported within 15 calendar days of when the disbursement was made to the students. Cause and Effect: During the beginning of the fall semester, the University implemented various system patches that impacted the timely reporting of certain batched information containing student disbursement data to be submitted to COD. While the University did identify the issue timely due to the related system changes they were unable to submit student disbursement information to the COD within the required 15 days of disbursement. Questioned Costs: No questioned costs were identified. Statistical Sample: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: No. Recommendation: We recommend the University enhances its current policies and procedures to ensure the timely reporting of Pell disbursements to COD. Views of Responsible Officials: Lehigh University accepts this finding. We are aware of the 15 calendar day requirement and have always met the deadline. Failure to report Pell Grant disbursements within 15 days in August of 2022 was the result of a well documented Ellucian defect that denied Lehigh the ability to obtain the required data from our Banner system. By the time Lehigh received a patch from Ellucian, we had missed the 15 day window. Ellucian acknowledged the bug and Lehigh accepted that it was an anomaly.