Ensign College
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
for the year ended December 31, 2024
Section III – Federal Award Findings and Questioned Costs
Finding 2024-001 Enrollment Reporting
Grantor: U.S. Department of Education
Program: Student Financial Assistance Cluster
Assistance Listing #: 84.268, 84.063
Title: Federal Direct Student Loan Program, Federal Pell Grant Program
Award Years: 7/2023 – 6/2025
Criteria
34 CFR 685.309(b):
(1) Upon receipt of an enrollment report from the Secretary, a school must update all information included
in the report and return the report to the Secretary -
(i) In the manner and format prescribed by the Secretary; and
(ii) Within the timeframe prescribed by the Secretary.
(2) Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that -
(i) A loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or
(ii) A student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address.
Condition
Of the population of students who had a status change and received Pell and/or Direct Loans during the period January 1, 2024 through December 31, 2024, 40 students were selected for enrollment reporting testing of the campus-level and program-level records. Of the 40 students selected, there were three exceptions noted:
• Two instances were noted in which the “campus status” information was incorrectly reported to the National Student Loan Data System (NSLDS). One student with Pell and/or Direct Loan funding totaling $463 was incorrectly reported as attending less than half-time during the Winter 2024 semester when the student had, in fact, withdrawn. Another student with Pell and/or Direct Loan funding totaling $3,697 was enrolled in the Fall 2023 semester and withdrew for the Winter 2024 semester but was incorrectly reported as withdrawn as of the Fall 2023 semester and not reported at all for the Winter 2024 semester.
• One instance was noted in which the “program status” information was incorrectly reported to NSLDS. This one student with $5,251 in Pell and/or Direct Loan funding was reported as enrolled in the program full-time during the Fall 2024 semester when they were, in fact, enrolled ¾ time.
Cause
The first instance noted of the incorrect “campus status” being reported was a result of the College's policy to report students as "Less than half time" if they are expected to return in the following semester. If the student does not return, the College retains the "Less than half time" status until the subsequent semester, resulting in an incorrect reporting of status as this student should have been reported as withdrawn.
The second instance of the incorrect “campus status” and the first instance of the incorrect “program status” information being reported were a result of a data transmission error between the National Student Clearinghouse (NSC) and NSLDS. Ensign College utilizes NSC to report enrollment rosters, inclusive of student status changes, on a regular basis (i.e., every 60 days) to NSLDS. However, Ensign
College did not properly correct all of the errors identified in the NSC error report to ensure their submissions were reported correctly. The engagement team confirmed that the changes in student enrollment status were submitted to NSC, but these changes were not reflected in NSLDS.
Effect
A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for payment of interest subsidies all of which are impacted by inaccurate reporting.
Questioned Costs
None
Recommendation
We recommend that the College revise their policy regarding students who withdraw to ensure that their status is accurately reported to NSLDS. We also recommend that the College continue to provide adequate training to the individuals responsible for updating students’ electronic files to ensure status changes are
accurately reported to NSLDS and that all errors identified by NSC are resolved in a timely manner. Additionally, we recommend the College continue to evaluate key reports on an ongoing basis to validate that the reports are complete and accurate to ensure that enrollment roster data is accurately reported to NSLDS.
Management’s View and Corrective Action Plan
Management’s response is reported in management’s view and corrective action plan included at the end of this report.
Ensign College
Schedule of Findings and Questioned Costs
For the year ended December 31, 2024
Section III – Federal Award Findings and Questioned
Finding 2024-002 – Non-Compliance with Financial Need Requirements for Subsidized Direct Loans
Grantor: U.S. Department of Education
Program: Student Financial Assistance Cluster
Assistance Listing #: 84.268
Title: Federal Direct Student Loan Program
Award Years: 7/2023 – 6/2025
Criteria
34 CFR Section 685.203 (j)(1-2):
(j) Maximum loan amounts. In no case may a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan
amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended, less--
(1) The student’s estimated financial assistance for that period; and
(2) In the case of a Direct Subsidized Loan, the borrower’s expected family contribution for that period.
Condition
Of the population of students who were awarded and received federal student financial assistance during the fiscal year, 60 students were selected for eligibility testing totaling $65,827 in direct loan funding. Of the 60 students selected, two instances were noted in which students were awarded a subsidized direct loan totaling $5,088 in excess of their estimated need. These instances occurred in the Winter and Spring 2024 semesters.
Cause
The two instances pertain to an error in the University’s student information system, PeopleSoft. As a result of a system update, PeopleSoft inaccurately input the estimated family contribution (EFC) as zero for direct loan recipients during the Winter and Spring 2024 semesters, rather than inputting the correct EFC for the students’ period of enrollment. This resulted in these students receiving a subsidized direct loan
they would not otherwise have been eligible to receive.
Effect
Awarding subsidized direct loans to students without financial need resulted in disbursement of needbased federal aid to ineligible students.
Questioned Costs
$5,088
Recommendation
We recommend that the University update their student information system configuration to appropriately pull the EFC for each student to ensure federal student financial assistance is awarded to eligible students.
Management’s Views and Corrective Action Plan:
Management’s response is reported in management’s views and corrective action plan included at the end of this report.
Ensign College
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
for the year ended December 31, 2024
Section III – Federal Award Findings and Questioned Costs
Finding 2024-001 Enrollment Reporting
Grantor: U.S. Department of Education
Program: Student Financial Assistance Cluster
Assistance Listing #: 84.268, 84.063
Title: Federal Direct Student Loan Program, Federal Pell Grant Program
Award Years: 7/2023 – 6/2025
Criteria
34 CFR 685.309(b):
(1) Upon receipt of an enrollment report from the Secretary, a school must update all information included
in the report and return the report to the Secretary -
(i) In the manner and format prescribed by the Secretary; and
(ii) Within the timeframe prescribed by the Secretary.
(2) Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that -
(i) A loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or
(ii) A student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address.
Condition
Of the population of students who had a status change and received Pell and/or Direct Loans during the period January 1, 2024 through December 31, 2024, 40 students were selected for enrollment reporting testing of the campus-level and program-level records. Of the 40 students selected, there were three exceptions noted:
• Two instances were noted in which the “campus status” information was incorrectly reported to the National Student Loan Data System (NSLDS). One student with Pell and/or Direct Loan funding totaling $463 was incorrectly reported as attending less than half-time during the Winter 2024 semester when the student had, in fact, withdrawn. Another student with Pell and/or Direct Loan funding totaling $3,697 was enrolled in the Fall 2023 semester and withdrew for the Winter 2024 semester but was incorrectly reported as withdrawn as of the Fall 2023 semester and not reported at all for the Winter 2024 semester.
• One instance was noted in which the “program status” information was incorrectly reported to NSLDS. This one student with $5,251 in Pell and/or Direct Loan funding was reported as enrolled in the program full-time during the Fall 2024 semester when they were, in fact, enrolled ¾ time.
Cause
The first instance noted of the incorrect “campus status” being reported was a result of the College's policy to report students as "Less than half time" if they are expected to return in the following semester. If the student does not return, the College retains the "Less than half time" status until the subsequent semester, resulting in an incorrect reporting of status as this student should have been reported as withdrawn.
The second instance of the incorrect “campus status” and the first instance of the incorrect “program status” information being reported were a result of a data transmission error between the National Student Clearinghouse (NSC) and NSLDS. Ensign College utilizes NSC to report enrollment rosters, inclusive of student status changes, on a regular basis (i.e., every 60 days) to NSLDS. However, Ensign
College did not properly correct all of the errors identified in the NSC error report to ensure their submissions were reported correctly. The engagement team confirmed that the changes in student enrollment status were submitted to NSC, but these changes were not reflected in NSLDS.
Effect
A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for payment of interest subsidies all of which are impacted by inaccurate reporting.
Questioned Costs
None
Recommendation
We recommend that the College revise their policy regarding students who withdraw to ensure that their status is accurately reported to NSLDS. We also recommend that the College continue to provide adequate training to the individuals responsible for updating students’ electronic files to ensure status changes are
accurately reported to NSLDS and that all errors identified by NSC are resolved in a timely manner. Additionally, we recommend the College continue to evaluate key reports on an ongoing basis to validate that the reports are complete and accurate to ensure that enrollment roster data is accurately reported to NSLDS.
Management’s View and Corrective Action Plan
Management’s response is reported in management’s view and corrective action plan included at the end of this report.
Ensign College
Schedule of Findings and Questioned Costs
For the year ended December 31, 2024
Section III – Federal Award Findings and Questioned
Finding 2024-002 – Non-Compliance with Financial Need Requirements for Subsidized Direct Loans
Grantor: U.S. Department of Education
Program: Student Financial Assistance Cluster
Assistance Listing #: 84.268
Title: Federal Direct Student Loan Program
Award Years: 7/2023 – 6/2025
Criteria
34 CFR Section 685.203 (j)(1-2):
(j) Maximum loan amounts. In no case may a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan
amount exceed the student’s estimated cost of attendance for the period of enrollment for which the loan is intended, less--
(1) The student’s estimated financial assistance for that period; and
(2) In the case of a Direct Subsidized Loan, the borrower’s expected family contribution for that period.
Condition
Of the population of students who were awarded and received federal student financial assistance during the fiscal year, 60 students were selected for eligibility testing totaling $65,827 in direct loan funding. Of the 60 students selected, two instances were noted in which students were awarded a subsidized direct loan totaling $5,088 in excess of their estimated need. These instances occurred in the Winter and Spring 2024 semesters.
Cause
The two instances pertain to an error in the University’s student information system, PeopleSoft. As a result of a system update, PeopleSoft inaccurately input the estimated family contribution (EFC) as zero for direct loan recipients during the Winter and Spring 2024 semesters, rather than inputting the correct EFC for the students’ period of enrollment. This resulted in these students receiving a subsidized direct loan
they would not otherwise have been eligible to receive.
Effect
Awarding subsidized direct loans to students without financial need resulted in disbursement of needbased federal aid to ineligible students.
Questioned Costs
$5,088
Recommendation
We recommend that the University update their student information system configuration to appropriately pull the EFC for each student to ensure federal student financial assistance is awarded to eligible students.
Management’s Views and Corrective Action Plan:
Management’s response is reported in management’s views and corrective action plan included at the end of this report.