Audit 373670

Finding 2025-001 – NSLDS Reporting Repeat Finding: Yes Federal Program Title – U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Work Study Program: 84.033 Federal Supplemental Educational Opportunity Grants 84.007 Federal Award Year 2024-2025 Award Numbers: P063P242988, P063P232988, P007A241227, P007A231227, P033A241227, P268K252988, P268K242988 Condition For eighteen out of sixty students tested (30%) who had enrollment changes at the College, the students' status effective dates at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) timely. For three out of sixty students tested (5%) who had enrollment changes at the College, the students' status at the campus level and program level were not reported to the NSLDS accurately. Criteria CFR section 685.309 and 690.83(b)(2) requires the College to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student’s date of determination of withdrawal. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure that enrollment status changes are reported timely. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause During the reporting period, the processing of the spring subsequent term file was delayed due to program mismatches reported to National Student Clearinghouse (NSC), which resulted in a significant volume of ER1568 errors. The resolution required extensive troubleshooting and the implementation of corrective measures, which extended the time needed to complete processing. Reporting of the College’s spring graduates was also delayed due to a missing reporting date within NSC. An alternative date was provided, and the Grads Only file was submitted on September 2, 2025. Context Frequent. Twenty-one out of sixty students selected for testing. Effect Failure to report status changes accurately and timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend the College implement review procedures to ensure that the proper effective date is reported timely to the NSLDS when a student withdraws or has an enrollment status change. A system of review procedures and/or controls will ensure the College is reporting status changes accurately. Views of responsible officials We agree with this finding. See corrective action plan.

Finding 2025-002 – Direct Loan Disbursement Notification Repeat Finding: No Federal Program Title – U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2024-2025 Award Numbers: P268K252988 Condition For eight out of eight students tested, the student did not receive the required notification that a direct loan had been credited to their account for nine out of the eighteen disbursements. Criteria 34 CFR 668.165 requires institutions who credit a student's account with a direct loan disbursement must notify the student, or parent, in writing of the (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 proceeds returned; 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. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure that direct loan notifications are sent timely. Questioned Costs There were no questioned costs related to testing of direct loan disbursement notifications. Cause During the first disbursement of the fall semester, the College provided the IT department with an incorrect disbursement date, which prevented disbursement notifications from being sent to students. Similarly, during the spring semester, the College failed to send the disbursement files to the IT department on several occasions, resulting in students not receiving disbursement notifications. Context Frequent. Eight out of eight students selected for testing. Effect Failure to notify students of their direct loan disbursement can result in students missing the period in which they can cancel their award and is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend the College implement review procedures to ensure that direct loan disbursement notifications are being sent each time a direct loan is credited to a student’s account. A system of review procedures and/or controls will ensure the College is properly sending notifications. View of Responsible Officials We agree with this finding. See corrective action plan.