Audit 386786

Information on the Federal Program: Student Financial Assistance Cluster; PELL (ALN 84.063) and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2024-25; Compliance requirement – Special Tests and Provisions; Type of Finding: Noncompliance. Criteria: The PELL and Direct Loan programs (Pell, 34 CFR section 690.83(b)(2) and Direct Loan, 34 CFR section 685.309) require institutions to submit enrollment data and enrollment changes to the National Student Loan Data System (NSLDS). Condition: SWAU submitted some of the required reporting to NSLDS late for the 2024-25 year. This is a continuation of finding 2024-001. Context: Nine reports were due for 2024-25, based on the NSLDS information reviewed during the audit. Five of these reports were filed late, with the delinquencies ranging from 80 to 155 days past the due date. Cause: A change in personnel and lack of timely hiring, understaffing and proper training in the Registrar’s office and a new university student information system led to the reports not being generated and filed timely. Effect or Potential Effect: Student enrollment status is not correctly reflected in the NSLDS system, potentially allowing students to not begin loan repayment in the correct timeframe. Recommendation: Deadlines and responsibilities for duties and tasks should be clearly communicated, and training regarding reporting requirements and information system considerations should be provided if needed, to avoid recurrence. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.

Information on the Federal Program: PELL (ALN 84.063), and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2024-25; Compliance requirement – Special Tests and Provisions; Type of Finding: Noncompliance. Criteria: 1) 34 CFR 668.21 requires that if a student does not begin attendance in a period of enrollment, the institution must return those funds as soon as possible, but no later than 30 days after the date that the institution becomes aware that the student will not or has not begun attendance. 2) 34 CFR 668.61 requires that, if an institution discovers that an applicant received more financial aid than eligible for, the program must be reimbursed by the earlier of the last day of the award year or sixty days after the applicant’s last day of attendance. 3) 34 CFR 668.22(j) requires that an institution return the amount of Title IV funds for which it is responsible as soon as possible but no later than 45 days after the date of the institution's determination that the student withdrew. 4) United States Department of Education FSA 2024-2025 Handbook and 34 CFR 685.202(c)(4)(i) require that schools should not return Direct Loan funds on a borrower’s behalf if more than 120 days have passed since the disbursement date. Condition: Funds were not returned to the respective programs in the required timeframe. This is a continuation of finding 2024-002. Context: Findings were noted in the following categories, out of a total PELL and Direct Loan refund population of 57 totaling $114,401: 1) Three awards for students not enrolled, ranging from 13 to 70 days past the 30-day deadline, $4,141 total. 2) One award for an ineligible student, 36 days past the last day of award year deadline, $489. 3) One borrower-requested refund, 72 days past the120-day deadline, $1,732. Cause: Inadequate training in the Ellucian software system to timely identify students not enrolled, withdrawn, and over-awarded aid. Effect or Potential Effect: The University could retain use of federal funds longer than the permissible timeframe. Students could receive SFA benefits in error. Recommendation: Provide training to financial aid personnel on the federal return requirements and on the software system capabilities that identify student status and eligibility amounts. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.

Information on the Federal Program: PELL (ALN 84.063); United States Department of Education; Award Year 2024-25; Compliance requirement – Eligibility; Type of Finding: Questioned Costs. Criteria: The FAFSA Simplification Act requires that PELL awards be reduced in direct proportion to the degree to which the student is not enrolled full-time. Condition: For one student record tested, the student was over-awarded $3,698 in PELL grant funds, due to not applying the correct enrollment intensity of 50%. Student was awarded based on Maximum PELL award with no adjustment for less than full-time enrollment. Context: Total federal student aid awards tested: 49, totaling $795,831. Projected out to total aid population of $6,207,420, the likely questioned costs would be $28,844. Cause: Inadequate training in the Ellucian software system to verify the accuracy of student awards and identify over-awards. Effect or Possible Effect: Student was awarded more in aid than allowed. Questioned costs: Known questioned costs totaled $3,698. Recommendation: Return the over-awarded amount to U.S.Department of Education if required. Provide training to financial aid personnel on the federal return requirements and on the software system capabilities that identify student eligibility amounts. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.