Audit 352725

FY End
2024-09-30
Total Expended
$15.77M
Findings
16
Programs
11
Year: 2024 Accepted: 2025-04-04
Auditor: Jackson Thornton

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
554058 2024-002 Significant Deficiency - N
554059 2024-002 Significant Deficiency - N
554060 2024-002 Significant Deficiency - N
554061 2024-002 Significant Deficiency - N
554062 2024-003 Significant Deficiency - N
554063 2024-003 Significant Deficiency - N
554064 2024-003 Significant Deficiency - N
554065 2024-003 Significant Deficiency - N
1130500 2024-002 Significant Deficiency - N
1130501 2024-002 Significant Deficiency - N
1130502 2024-002 Significant Deficiency - N
1130503 2024-002 Significant Deficiency - N
1130504 2024-003 Significant Deficiency - N
1130505 2024-003 Significant Deficiency - N
1130506 2024-003 Significant Deficiency - N
1130507 2024-003 Significant Deficiency - N

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $10.23M Yes 2
84.268 Federal Direct Student Loans $4.44M Yes 2
84.002 Adult Education - Basic Grants to States $342,090 - 0
84.048 Career and Technical Education -- Basic Grants to States $171,473 - 0
84.007 Federal Supplemental Educational Opportunity Grants $163,460 Yes 2
17.258 Wioa Adult Program $73,670 - 0
17.268 H-1b Job Training Grants $61,107 - 0
84.033 Federal Work-Study Program $49,898 Yes 2
47.041 Engineering $9,229 - 0
17.278 Wioa Dislocated Worker Formula Grants $9,042 - 0
47.076 Education and Human Resources $3,804 - 0

Contacts

Name Title Type
ZYE3A72ETCJ5 Ben Jordan Auditee
2563952211 Katie Schmidt Auditor
No contacts on file

Notes to SEFA

Title: Note 1 - Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported 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: Please see attached Note 3 Content. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of the College, under programs of federal award activity of the College, under programs of the federal government for the year ended September 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 operations of the College, it is not intended to and does not present the financial position, changes in net position, or cash flows of the College.
Title: Note 2 - Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported 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: Please see attached Note 3 Content. Expenditures reported on the Schedule are reported 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: Note 3 - Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported 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: Please see attached Note 3 Content. Southern Union State College has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2024. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 7 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60-day reporting window after the status change was effective. For 2 students selected for Enrollment Reporting testing, the status change was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting student status changes to NSLDS were not adequate. Effect - Student status changes were not reported to NSLDS within the required timeframe. Identification of Repeat Finding - Repeat finding of prior year finding 2023-002. Recommendation - We recommend the College revise its processes for reporting student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely and correctly reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding. Errors were caused by a coding error within their reporting system. Upon discovery, the errors were promptly reviewed and corrected subsequent to year end. The necessary adjustments were made to the enrollment data, and the corrected information was submitted to the appropriate federal and state agencies in compliance with reporting requirements.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.
Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268. Criteria - 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. If the total amount of Title IV assistance earned by the student is less than the amount that was disbursed to the student or on his or her behalf as of the date of the institution’s determination that the student withdrew, the difference must be returned to the Title IV programs as outlined in this section and no additional disbursements may be made to the student for the payment period or period of enrollment. If the amount the student earned is greater than the amount disbursed, the difference between the amounts must be treated as a post-withdrawal disbursement (34 CFR 668.22(a)(1) through (a)(5)). Condition - A sample of 40 students were selected from a population of all students that were withdrawn, dropped, on a leave of absence, never began attendance or terminated during the audit period to ascertain if returns of Title IV funds were properly calculated and timely processed. For 1 student selected for Return to Title IV testing, it was identified that the College incorrectly calculated the Return to Title IV (R2T4) funding due to inaccuracies in the institutional charges applied to the R2T4 calculation. The College did not use the correct institutional charges in its R2T4 calculation, which resulted in overcalculating the return of funds by the institution and undercalculating the return of funds by the student that needed to be returned to the U.S. Department of Education (ED). For 2 students selected for Return to Title IV testing, the College did not properly allocate the returned funds between the College and the student. As a result, the student’s portion of the returned funds was either over- or under-reported, impacting both the student’s financial aid account and the College’s compliance with federal requirements. For 1 student selected for Return to Title IV testing, the College used incorrect enrollment start and end dates, which resulted in the failure to properly complete an R2T4 calculation. Because the calculation was not performed when required, the College did not determine the amount of Title IV funds to be returned for students who withdrew, as mandated by the U.S. Department of Education. Cause - The errors were due to inadequate internal controls over the R2T4 process. The institution's processes for tracking enrollment dates, calculating institutional amounts, and allocating funds did not include sufficient verification steps to ensure accuracy. Effect - Overpayments or underpayments of R2T4 reimbursements to students and the Department of Education. Recommendation - We recommend the College Conduct periodic audits of the R2T4 process to ensure ongoing compliance with federal requirements and to identify potential errors before they impact students or the institution. We also recommend that management strengthens internal controls to ensure that the correct institutional amounts, enrollment dates, and other relevant data are used in the R2T4 process. This should include system checks or automated tools to flag discrepancies. Views of Responsible Officials - Management agrees with the finding.