Audit 385605

Finding: 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance (Please see SFQC - Section III - Finding 2025-001, for included table) Criteria: 34 CFR section 685.309(b)(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/context: A sample of 20 out of a universe of 228 federal aid recipient students were selected from system generated reports of students who graduated, withdrew, or dropped during the 2024-2025 academic year. The enrollment information per the College’s records was compared to the information reported to the National Student Loan Data System (NSLDS) in order to determine if status changes were reported within the required timeframes. All 20 of the students selected as samples were not reported to the NSLDS within the required timeframe. Cause: Capacity constraints and turnover within the registrar department limited the College’s ability to implement proper oversight of enrollment reporting. Effect or potential effect: The NSLDS database did not include accurate information until the point at which it was corrected. This information is utilized by ED, the Direct Loan program, lenders, and other institutions to determine in-school status, deferment, and grace periods of student loans. Incorrect information could result in incorrect deferment, grace periods, billing, and repayment of student loans. Recommendation: We recommend that the College timely notify NSLDS of any changes of students’ status such as graduation, address change, etc. We recommend that the College updates NSLDS for any graduations within the 30-day requirement or include in a roster file within 60 days. Repeat Finding: Yes, see 2024-001. Management’s Response: The College has accepted the auditor recommendation that the College document and implement processes to ensure timely NSLDS reporting. A Corrective Action plan has been created.