Audit 388459

This section identifies the audit findings required to be reported by 2 CFR 200.516(a) (significant deficiencies, material weaknesses, material instances of noncompliance, including questioned costs and material abuse.) Finding 2025-001: Student Financial Assistance Cluster, Department of Education Programs Program Names: Federal Direct Student Loans Assistance Listing Numbers: 84.268 Criteria or Specific Requirement: 34 CFR section 685.309 states that once a change in student enrollment status has been received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to Federal Family Education Loan Program (FFEL) loan holders by the Department of Education (ED). Enrollment reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. 34 CFR 668.32 requires that an organization report student status changes within 60 days of graduation, withdrawal, or other roster status changes. Condition: The College failed to report enrollment status changes to the NSLDS through the National Student Clearinghouse within the required timeframe as required under 34 CFR 668.32 for 3 of 60 students tested. Cause: The delay in the reporting of student enrollment changes was a failure in the College’s processes and controls surrounding review of exchange students’ and high school students’ reporting information. The College did not include all student enrollment changes in the clearinghouse timely. Effect or Potential Effect: A student’s enrollment status determines eligibility for in-school status, deferment and grace periods, as well as for the payment interest subsidies to FFEL Program loan holders by ED. Enrollment reporting in a timely and accurate manner is critical for effective management of the program. Changes in enrollment status were not submitted on time to the National Student Loan Data System as required under 34 CFR 668.32. This potentially caused a late conversion of student loans into repayment status. Questioned Costs: There are no questioned costs. Context: The sample selected for testing is representative of the population. Identification as a Repeat Finding, if applicable: This is not a repeat finding. Recommendation: We recommend the College implement a review over the exchange students’ and high school students’ enrollment change submission to the NSLDS. We also recommend that the College develop and document policies and procedures to ensure that all enrollment changes are reported accurately, completely and in a timely manner. Views of Responsible Officials and Planned Corrective Actions: Management concurs with this finding. See separate corrective action plan document.