Audit 351979

FY End
2024-06-30
Total Expended
$15.66M
Findings
12
Programs
7
Organization: Queens University of Charlotte (NC)
Year: 2024 Accepted: 2025-03-31
Auditor: Bdo USA PC

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
548644 2024-003 - - N
548645 2024-001 - - N
548646 2024-003 - - N
548647 2024-001 - - N
548648 2024-002 Significant Deficiency Yes N
548649 2024-003 - - N
1125086 2024-003 - - N
1125087 2024-001 - - N
1125088 2024-003 - - N
1125089 2024-001 - - N
1125090 2024-002 Significant Deficiency Yes N
1125091 2024-003 - - N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $12.13M Yes 3
84.063 Federal Pell Grant Program $1.90M Yes 2
84.425 Education Stabilization Fund $1.16M - 0
84.033 Federal Work-Study Program $189,481 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $123,563 Yes 1
12.900 Language Grant Program $104,594 - 0
66.516 P3 Award: National Student Design Competition for Sustainability $28,445 - 0

Contacts

Name Title Type
F7F3RPLJ5G21 Everett Jeter Auditee
7043372337 La Shaun King Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Queens University of Charlotte (the “University”) under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (“Uniform Guidance”). Because the Schedule 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 activities, or cash flows of the University. In certain programs, the expenditures reported in the consolidated financial statements may differ from the expenditures reported in the Schedule due to program expenditures exceeding grant or contract budget limitations which are not reported as expenditures in the schedule of expenditures of federal awards. All of the University’s federal awards were in the form of cash assistance for the year ended June 30, 2024. Additionally, no federal funds were disbursed to subrecipients during the year ended June 30, 2024.
Title: Summary of Significant Accounting Policies Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Federal Student Loan Programs Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. The total loans granted under the Federal Direct Loan Program, which were not made by the University but were received by its students, were $12,130,723 for the year ended June 30, 2024. The Federal Perkins Loan Program (“FPL Program”) was liquidated during the year ended June 30, 2024. Testing procedures performed over the Schedule included the required close out audit procedures.
Title: Indirect Cost Rate Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. The University has elected not to use the 10 percent de minimus indirect cost rate allowed under Uniform Guidance.
Title: Contingency Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. The grant revenue amounts received are subject to audit and adjustment. If any expenditures are disallowed by the grantor agencies as a result of such an audit, any claim for reimbursement to the grantor agencies would become a liability of the University. In the opinion of management, and with the exception of certain findings presented in the accompanying schedule of findings and questioned costs, all grant expenditures are in compliance with the terms of the grant agreements and applicable federal laws and regulations.
Title: Subsequent Events Accounting Policies: The accompanying Schedule includes the federal grant transactions of the University recorded on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The University elected to use the indirect cost rate outlined in each grant agreement for its federal programs, as applicable. On March 20, 2025, the Trump Administration issued Executive Order “Improving Education Outcomes by Empowering Parents, States, and Communities” ordering the Secretary of Education to facilitate the closure of the U.S. Department of Education to the extent appropriate and permitted by law. It is unclear and not possible to reasonably estimate the full impact, if any, of this order on the University and its financial condition, liquidity, and future results of operations. As of the date of these financial statements, the University has not seen a material negative impact to its operations. The University continues to monitor the impact of the executive order as well as other events as a part of its standard monitoring of access to Title IV and other federal funding.

Finding Details

FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.
FINDING 2024-001 Federal Program Information: Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Enrollment Reporting – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (“FFEL”) Loan Program via the National Student Loan Data System (the “NSLDS”) (OMB No. 1845-0035). Although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (“NSLDSFAP”) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: Certain students’ campus-level enrollment data was not accurately reported. Cause: In both instances, the graduate submission schedules were reported to the registrar timely. Subsequent to that date, both students were qualified to graduate, however, updated student statuses were not reported to the NSLDS. Effect or Potential Effect: The University was not in compliance with the enrollment reporting requirements. Questioned Costs: None. Context: For 2 of 40 campus level records tested, the students’ enrollment statuses were incorrectly reported as withdrawn instead of graduated. Identification as a Repeat Finding: There was no similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over enrollment reporting to ensure that campus level enrollment data is timely and accurately reported to NSLDS. Views of Responsible Officials: Certain students’ campus level enrollment data was not accurately reported. The Registrar’s Office will determine why certain students falling outside of normal graduate submission schedules are not being captured in DegreeVerify files submitted to the National Student Clearinghouse. Manual submissions for these non-standard graduates will be performed until a reporting solution is identified.
FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.
FINDING 2024-001 Federal Program Information: Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Enrollment Reporting – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (“FFEL”) Loan Program via the National Student Loan Data System (the “NSLDS”) (OMB No. 1845-0035). Although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (“NSLDSFAP”) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: Certain students’ campus-level enrollment data was not accurately reported. Cause: In both instances, the graduate submission schedules were reported to the registrar timely. Subsequent to that date, both students were qualified to graduate, however, updated student statuses were not reported to the NSLDS. Effect or Potential Effect: The University was not in compliance with the enrollment reporting requirements. Questioned Costs: None. Context: For 2 of 40 campus level records tested, the students’ enrollment statuses were incorrectly reported as withdrawn instead of graduated. Identification as a Repeat Finding: There was no similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over enrollment reporting to ensure that campus level enrollment data is timely and accurately reported to NSLDS. Views of Responsible Officials: Certain students’ campus level enrollment data was not accurately reported. The Registrar’s Office will determine why certain students falling outside of normal graduate submission schedules are not being captured in DegreeVerify files submitted to the National Student Clearinghouse. Manual submissions for these non-standard graduates will be performed until a reporting solution is identified.
FINDING 2024-002 Federal Program Information: Federal Direct Student Loans (ALN 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Disbursements To or On Behalf of Students - Loan Disbursement Notifications: Federal regulations (34 CFR section 668.165 (a)(6)(i)) require that the institution notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to the U.S. Department of Education; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds, and (2) a notice when FSA loan funds or TEACH Grant funds are credited to a student’s account. Condition: The University was unable to provide evidence of loan disbursement notifications for certain students. Cause: Administrative oversight. Effect or Potential Effect: The University was unable to evidence compliance with loan notification requirements for those students. Questioned Costs: None. Context: For 8 of 25 disbursements tested, the University was unable to provide documentation showing that a notification was sent within the required timeframe to the borrower regarding the loan disbursement. Identification as a Repeat Finding: This is a repeat of prior year Finding 2023-002. Recommendation: We recommend the University enhance its procedures over loan notifications to ensure timely and accurate notification to borrowers within the prescribed timeframe. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. A loan disbursement notification was sent to the students in question; however, we can only document the loan disbursement notification was sent but are unable to document the date or content of the communication. Students identified with missing communications are from spring 2024. Our internal processes dictate that the notification would normally be sent on the date of disbursement. We will develop and implement a loan disbursement notification to loan recipient reconciliation process to effectively capture students with missing communications to ensure that both a record of the notification and the date are maintained.
FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.
FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.
FINDING 2024-001 Federal Program Information: Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Enrollment Reporting – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (“FFEL”) Loan Program via the National Student Loan Data System (the “NSLDS”) (OMB No. 1845-0035). Although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (“NSLDSFAP”) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: Certain students’ campus-level enrollment data was not accurately reported. Cause: In both instances, the graduate submission schedules were reported to the registrar timely. Subsequent to that date, both students were qualified to graduate, however, updated student statuses were not reported to the NSLDS. Effect or Potential Effect: The University was not in compliance with the enrollment reporting requirements. Questioned Costs: None. Context: For 2 of 40 campus level records tested, the students’ enrollment statuses were incorrectly reported as withdrawn instead of graduated. Identification as a Repeat Finding: There was no similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over enrollment reporting to ensure that campus level enrollment data is timely and accurately reported to NSLDS. Views of Responsible Officials: Certain students’ campus level enrollment data was not accurately reported. The Registrar’s Office will determine why certain students falling outside of normal graduate submission schedules are not being captured in DegreeVerify files submitted to the National Student Clearinghouse. Manual submissions for these non-standard graduates will be performed until a reporting solution is identified.
FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.
FINDING 2024-001 Federal Program Information: Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Enrollment Reporting – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (“FFEL”) Loan Program via the National Student Loan Data System (the “NSLDS”) (OMB No. 1845-0035). Although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (“NSLDSFAP”) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: Certain students’ campus-level enrollment data was not accurately reported. Cause: In both instances, the graduate submission schedules were reported to the registrar timely. Subsequent to that date, both students were qualified to graduate, however, updated student statuses were not reported to the NSLDS. Effect or Potential Effect: The University was not in compliance with the enrollment reporting requirements. Questioned Costs: None. Context: For 2 of 40 campus level records tested, the students’ enrollment statuses were incorrectly reported as withdrawn instead of graduated. Identification as a Repeat Finding: There was no similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over enrollment reporting to ensure that campus level enrollment data is timely and accurately reported to NSLDS. Views of Responsible Officials: Certain students’ campus level enrollment data was not accurately reported. The Registrar’s Office will determine why certain students falling outside of normal graduate submission schedules are not being captured in DegreeVerify files submitted to the National Student Clearinghouse. Manual submissions for these non-standard graduates will be performed until a reporting solution is identified.
FINDING 2024-002 Federal Program Information: Federal Direct Student Loans (ALN 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Disbursements To or On Behalf of Students - Loan Disbursement Notifications: Federal regulations (34 CFR section 668.165 (a)(6)(i)) require that the institution notify the student, or parent, in writing of (1) the date and amount of the disbursement; (2) the student’s right, or parent’s right, to cancel all or a portion of that loan or loan disbursement and have the loan proceeds returned to the holder of that loan or the TEACH Grant payments returned to the U.S. Department of Education; and (3) the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the loan, TEACH Grant, or TEACH Grant disbursement. Institutions that implement an affirmative confirmation process (as described in 34 CFR section 668.165 (a)(6)(i)) must make this notification to the student or parent no earlier than 30 days before, and no later than 30 days after, crediting the student’s account at the institution with Direct Loan or TEACH Grants. The Federal Student Aid Handbook further clarifies that in general, there are two types of notifications a school must provide: (1) a general notification to parent Direct PLUS borrowers and all students receiving Federal Student Aid (“FSA”) funds, and (2) a notice when FSA loan funds or TEACH Grant funds are credited to a student’s account. Condition: The University was unable to provide evidence of loan disbursement notifications for certain students. Cause: Administrative oversight. Effect or Potential Effect: The University was unable to evidence compliance with loan notification requirements for those students. Questioned Costs: None. Context: For 8 of 25 disbursements tested, the University was unable to provide documentation showing that a notification was sent within the required timeframe to the borrower regarding the loan disbursement. Identification as a Repeat Finding: This is a repeat of prior year Finding 2023-002. Recommendation: We recommend the University enhance its procedures over loan notifications to ensure timely and accurate notification to borrowers within the prescribed timeframe. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. A loan disbursement notification was sent to the students in question; however, we can only document the loan disbursement notification was sent but are unable to document the date or content of the communication. Students identified with missing communications are from spring 2024. Our internal processes dictate that the notification would normally be sent on the date of disbursement. We will develop and implement a loan disbursement notification to loan recipient reconciliation process to effectively capture students with missing communications to ensure that both a record of the notification and the date are maintained.
FINDING 2024-003 Federal Program Information: Federal Supplemental Education Opportunity Grants (ALN# 84.007), Federal Pell Grant Program (ALN #84.063), Federal Direct Student Loans (ALN# 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Return of Title IV Funds: When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student’s withdrawal date. Additionally, returns of Title IV funds are required to be deposited or transferred into the student financial assistance account or electronic fund transfers initiated to the U.S. Department of Education no later than 45 days after the date the institution determines the student has withdrawn (34 CFR section 668.173(b)). Condition: The University did not appropriately return the amount of unearned funds within the required timeframe. Cause: The University correctly determined the amount of Title IV aid earned for a student, but due to administrative oversight, erroneously processed the return of funds. Effect or Potential Effect: Returns of Title IV funds were not made within the required timeframe. Questioned Costs: None. Context: For 1 of 6 students tested, the amount calculated as due for return was not appropriately returned. Identification as a Repeat Finding: No similar finding identified in the prior year. Recommendation: We recommend the University enhance its procedures over return of Title IV funds to ensure unearned portions of federal aid are appropriately returned to the U.S. Department of Education. Views of Responsible Officials: The error falls into the category of human oversight rather than fundamental misunderstanding of the regulation or timing of processes. The University correctly determined the amount of Title IV aid earned for a student within the required timeframes, but due to administrative oversight, omitted one of the required awards from the return update on the student account. A regular review of R2T4 calculations will be developed to ensure that the actual returns match the return calculations.