Audit 378700

2025-001: Student Financial Aid Cluster - Special Tests: Enrollment Reporting (Significant Deficiency) Assistance Listing Numbers/Titles: #84.268, Federal Direct Student Loans, and #84.063, Federal Pell Grant Program Federal Agency Name: U.S. Department of Education Pass-Through Entity Name (if applicable): N/A Award Number/Name: N/A Award Year: July 1, 2024 - June 30, 2025 Criteria: Per 34 CFR 690.83(b)(2), “The Secretary accepts a student’s Payment Data that is submitted in accordance with procedures established through publication in the Federal Register, and that contains information the Secretary considers to be accurate in light of other available information, including that previously provided by the student and the institution.” Per 34 CFR 685.309(b), “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.” Per 2.3 of the National Student Loan Data System (NSLDS) Enrollment Reporting Guide, “The accurate administration of the Title IV programs depends heavily on the accuracy of the enrollment information reported by schools and timely and complete enrollment status reporting can help reduce the need for paper deferment forms.” Per 3.3 of the NSLDS Enrollment Reporting Guide, “As with any school/servicer arrangement for the administration of Title IV programs, if the school uses an Enrollment Reporting Servicer, the school still has the primary responsibility for submitting timely, accurate, and complete responses to Enrollment Reporting Roster files, and for reporting any changes in student enrollment status in a timely manner.” Condition/context: Of the 11 students selected for testing of accurate enrollment reporting, we noted the following errors: • One instance in which the student was reported as withdrawn with the incorrect effective date; • Two instances in which the student was not reported within 60 days of the date of determination; and • One instance in which the student was reported with the incorrect enrollment status. Cause: The Student Financial Aid and Registrar Offices do not have sufficient controls in place to ensure the proper and timely reporting of student status changes. Effect: The improper reporting of student status changes could impact students’ interest subsidies and/or repayment status. III. FEDERAL AWARD FINDINGS AND QUESTIONED COSTS, Continued Questioned costs: None. Identification as a repeat finding: Yes. See finding 2024-002. Recommendation: The Student Financial Aid and Registrar Offices should implement additional controls to ensure the proper and timely reporting of student status changes. Upon the implementation of an effective reporting control process, we recommend that the College directly review the student status changes at the NSLDS rather than rely solely on its third-party service provider. Views of responsible officials and planned corrective action: Management concurs with the finding. See Exhibit I for the corrective action plan.