Audit 385572

2025-002 - Noncompliance with Enrollment Status Change Reporting Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Special Tests & Provisions). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, 84.268; Award Numbers P007A231980, P007A241980, P033A241980, P063P231624, P063P241624. Criteria. Per 34 C.F.R. §685.309 and NSLDS Enrollment Reporting requirements, institutions must report accurate and complete student enrollment status changes to the National Student Loan Data System (NSLDS) within 60 days of becoming aware that a student’s enrollment status has changed. Condition. During our testing of enrollment status change reporting, we noted one instance in which a student’s status change was not reported to NSLDS within 60 days. Cause. The delay occurred because the student was assigned a different coding structure within the College’s system due to their foreign student status. This coding difference resulted in the student being excluded from the standard status-change reporting process, causing the change to be overlooked when NSLDS reporting was performed. Effect. As a result of this condition, the College was out of compliance with enrollment reporting requirements. Questioned Costs. No costs are requried to be questioned as a result of this finding, inasmuch as no unallowable expenditures were noted. Recommendation. We recommend the College review and update its enrollment reporting processes to ensure that all students, including those with unique or foreign-student coding, are captured in routine status-change monitoring and NSLDS reporting procedures. The College should implement controls to detect nonstandard coding and ensure that all enrollment changes are identified and reported within required federal timelines. View of Responsible Officials. Management agrees with the finding and has updated internal reports and review procedures to ensure all student types are included in enrollment reporting workflows. Management has prepared a corrective action plan.