Audit 388485

FY End
2025-08-31
Total Expended
$26.35M
Findings
5
Programs
5
Year: 2025 Accepted: 2026-02-23

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
1174911 2025-001 Material Weakness Yes N
1174912 2025-001 Material Weakness Yes N
1174913 2025-001 Material Weakness Yes N
1174914 2025-001 Material Weakness Yes N
1174915 2025-001 Material Weakness Yes N

Programs

ALN Program Spent Major Findings
84.268 FEDERAL DIRECT STUDENT LOANS $25.11M Yes 1
84.063 FEDERAL PELL GRANT PROGRAM $509,551 Yes 1
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $487,807 Yes 1
84.033 FEDERAL WORK-STUDY PROGRAM $215,227 Yes 1
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $21,364 Yes 1

Contacts

Name Title Type
JVJXJU3L5T53 Jane Garner Auditee
9527774342 Daniel Persaud Auditor
No contacts on file

Notes to SEFA

The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the University under programs of the federal government for the year ended August 31, 2025. The information in this Schedule is presented in accordance with the requirements of 2 CFR Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the University.
Northwestern Health Sciences University had the following student loan balances outstanding at August 31, 2025. These loan balances are also included in the federal expenditures presented in the schedule of expenditures of federal awards. Program Title / Listing Number / Outstanding: Federal Perkins Loan Program / 84.038 / $367,169
The Institution is in compliance with the following institutional and program eligibility requirements under the Higher Education Act of 1965 and Federal regulations under 34-CFR 668.23: • Correspondence courses the institution offers under 34 CFR 600.7(b) and (g) • Regular students that enroll in correspondence courses under 34 CFR 600.7(b) and (g) • Institution’s regular students that are incarcerated under 34 CFR 600.7(c) and (g) • Completion rates for confined or incarcerated individuals enrolled in non-degree programs at nonprofit institutions under 34 CFR 600.7(c)(3)(ii) and (g) • Institution’s regular students that lack a high school diploma or its equivalent under 34 CFR 600.7(d) and (g) • Completion rates for short-term programs under 34 CFR 668.8(f) and (g) • Placement rates for short-term programs under https://www.ecfr.gov/current/title-34/subtitle-B/chapter-VI/part-668/subpart-A/section-668.8 34 CFR 668.8(e)(2)

Finding Details

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: September 1, 2024 through August 31, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date and status. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. Condition: During our testing, it was noted the effective date reported on the "Campus Level" report in NSLDS did not match the University records for 2 of the 60 students tested. It was also noted that the change in enrollment status was not reported timely for 2 of the 60 students tested. Questioned Costs: None. Context: There were discrepancies between the effective dates reported to NSLDS and the University's records as well as timely reporting issues. Cause: The University's processes and controls did not ensure that student effective dates were properly and timely reported to NSLDS. The effective date should be the student's last date of attendance and academically-related activity. Effect: The NSLDS system is not updated with the correct student information which can cause a student to not properly enter the repayment period. Repeat Finding: Yes, 2024-001 Recommendation: We recommend reviewing the components of the enrollment roster file to ensure the correct effective date is reported correctly for the "Campus Level" as well as making sure records are being timely reported. Views of Responsible Officials: There is no disagreement with the audit finding.