Audit 389673

Information on the Federal Program - Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2024-2025. Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting (Pell 34 CFR Section 690.83(b)(2); FDL, 34 CFR Section 685.309). Condition – Certain student enrollment status changes were not communicated to the National Student Loan Data System (“NSLDS”) on a timely basis or were reported incorrectly. Cause – Majority of the exceptions identified in the sample population were related to changes within the system not being properly identified and reported externally to NSLDS. Effect – The NSLDS was not properly notified of student enrollment status changes of Direct Student Loan and Pell recipients in accordance with federal regulations. Questioned costs – None Context - Out of a population of 1,014 student enrollment status changes requiring notification transmitted to NSLDS, a sample of 48 student enrollment status changes was selected for testing. 47 of the enrollment status changes had discrepancies in Enrollment Effective Dates between the NSLDS Campus-Level Record, NSLDS Program-Level Record, and the University Records. Additionally, 8 of these students had enrollment status changes that were reported outside of the 60 day requirement. Lastly, 5 of these 8 students had enrollment status changes that were not reported. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding – 2024-001, 2023-003, 2022-001, 2021-001, 2020-002, and 2019-001 Recommendation – The University should determine a more timely way to identify and communicate across the necessary departments when a student's enrollment status changes. Possible outside IT assistance may be needed to properly capture student enrollment activity within the system so it gets reported properly within the electronic batches going to the Federal Audit Clearinghouse. We also recommend performing selfaudits on a monthly or quarterly basis to verify procedures in place are effective. Views of Responsible Officials and Planned Corrective Action - Management concurs with the finding and recommendation. See further information on the corrective plan provided by management.

Information on the Federal Program - Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans U.S. Department of Education Program Year 2024-2025. Criteria or Specific Requirement – Special tests and provisions – Return of Title IV Funds (34 CFR 668.22(a)(1) through (a)(5)). Condition - Federal regulations provide the University is responsible for returning funds to ED and student accounts within 45 days of the University becoming aware the student has withdrawn, or 30 days for students that never began attendance. The University's internal control system did not prevent inaccurate returns. Cause - The University's processes did not ensure return of Title IV funds were completed accurately and timely. Effect - The University may not be able to timely detect when returns of funds are required for students who have withdrawn or never began attendance. This could result in late disbursements or over-refunding of return of funds. Questioned costs – $2,443 (This was calculated based on recalculation of refund compared to actual paid.) Context - Out of a population of 109 student refunds with total federal aid received of $1,599,298, a sample of 25 student returns with total federal aid received of $381,257 was selected for testing. One of the selections was over-refunded to the student for Federal Direct Students Loan by $2,443. Our sample was not, and was not intended to be, statistically valid. Identification as a repeat finding – Not Applicable Recommendation: We recommend the University evaluate controls around monitoring return of Title IV funds to determine changes, either on the electronic processes or review processes that should be made to properly capture return of Title IV funds on a timely basis. Views of Responsible Officials and Planned Corrective Action - Management concurs with the finding and recommendation. See further information on the corrective plan provided by management.