Audit 374153

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.063 – Federal Pell Grant Program, 84.268 – Federal Direct Student Loans Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: June 1, 2024 – May 31, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to the National Student Loan Data System (NSLDS) within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Errors must be corrected within 10 days. Condition: While performing audit procedures, it was noted that 18 of the 40 instances in our sample did not report the effective date of the campus-level records correctly. There were also 2 instances where the sample selected did not report the effective date of the program-level records correctly. Questioned costs: None. Context: A control system to prevent and detect errors in the reporting process was not created to ensure all required reporting compliance was filed correctly. Cause: The University’s processes and controls did not ensure that student status changes were properly reported to NSLDS. Effect: The NSLDS system is not updated with the student information which can cause over awarding should the student transfer to another institution and the students may not properly enter the repayment period. Repeat finding: Yes, 2024-002 Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately reported to NSLDS as required by regulations. Views of responsible officials: There is no disagreement with the audit finding.