Audit 335701

Finding 2024-001 Repeat Finding: No Major Programs: 84.268 Federal Direct Student Loans Program Federal Agency: Department of Education Award Year: July 1, 2023 to June 30, 2024 Compliance Requirement: Special Tests – Enrollment Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Other matters Questioned Costs: None Criteria: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. Condition and Context: We noted that 2 out of 40 students tested, the College did not report the student’s status or enrollment change accurately to NSLDS within the required 60 days period. We also noted 8 additional active students that were reported as withdrawn status at the Program Level and active status at the Campus Level effective at the end of the Spring 2024 term. The 8 students Program Level was updated to active effective at the beginning of the Fall 2024 term. The College should consider the students active in the current program until the student officially changes their program. Effect: The inaccurate status may affect the student’s future Title IV funding. Possible Cause: The College’s internal control process did not detect or prevent untimely information being reported to NSLDS. In 8 instances it appears NSC had a breakdown in the communication to NSLDS. Recommendation: We recommend that the College enhance its internal controls to ensure all information submitted to NSLDS is reviewed for accuracy on a timely basis. View of responsible officials: The College agrees with the finding and will modify its internal controls to ensure accurate and timely reporting of student status changes to the National Student Loan Data System (NSLDS).

Finding 2024-001 Repeat Finding: No Major Programs: 84.268 Federal Direct Student Loans Program Federal Agency: Department of Education Award Year: July 1, 2023 to June 30, 2024 Compliance Requirement: Special Tests – Enrollment Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Other matters Questioned Costs: None Criteria: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. Condition and Context: We noted that 2 out of 40 students tested, the College did not report the student’s status or enrollment change accurately to NSLDS within the required 60 days period. We also noted 8 additional active students that were reported as withdrawn status at the Program Level and active status at the Campus Level effective at the end of the Spring 2024 term. The 8 students Program Level was updated to active effective at the beginning of the Fall 2024 term. The College should consider the students active in the current program until the student officially changes their program. Effect: The inaccurate status may affect the student’s future Title IV funding. Possible Cause: The College’s internal control process did not detect or prevent untimely information being reported to NSLDS. In 8 instances it appears NSC had a breakdown in the communication to NSLDS. Recommendation: We recommend that the College enhance its internal controls to ensure all information submitted to NSLDS is reviewed for accuracy on a timely basis. View of responsible officials: The College agrees with the finding and will modify its internal controls to ensure accurate and timely reporting of student status changes to the National Student Loan Data System (NSLDS).