Audit 389674

Program: Federal Direct Student Loans CFDA Number: 84.268 Federal Agency: U.S. Department of Education Federal Award Identification Number P268K221428 Federal Award Year: June 30, 2024 Repeat of Prior Year Finding 2024-003 Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. 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 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. Condition: For 10 students tested, the change in enrollment status was not reported to NSLDS within 60 days. For 1 student tested, the enrollment status reported to the National Student Loan Data System (NSLDS) did not match the University’s records during the fiscal year 2025. Question Costs: Not applicable. Context: Noncompliance with federal regulations was noted for 11 of the 40 students who were tested. 10 of the students did not have their change in enrollment status reported to NSLDS within 60 days. 1 student did not show the correct change of status, and thus also did not have their change in enrollment status reported timely to NSLDS. A total of 575 students who were issued Federal Direct Student Loans separated from the University or had a change in enrollment status during fiscal year 2025. The sample was not considered statistically valid. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by the schools. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status, and other information, then the Title IV student loan records will be inaccurate, which impacts student loan repayments. Cause: It does not appear that there are proper processes in place surrounding enrollment reporting in order to verify that the correct dates, enrollment statuses, or other information are reported to NSLDS within the required timeframes. Recommendation: It is recommended that policies and procedures are put in place to verify that the correct effective dates and status changes are reported to NSLDS within required time frames. This could include a review of withdrawal or graduation dates compared to the effective dates reported to NSLDS to make sure they are accurate.

Program: Federal TEACH Grant CFDA Number 84.379 Federal Agency: U.S. Department of Education Federal Award Identification Number: Federal Award Year: June 30, 2024 Criteria: 34 CFR 686.11 states that for the purposes of the TEACH Grant program for an undergraduate student other than a student enrolled in a post-baccalaureate program, has not completed the requirements for a first baccalaureate degree; or for the purposes of a student in a first post-baccalaureate program, has not completed the requirements for a post-baccalaureate program; is enrolled in a TEACH Grant-eligible institution in a TEACH Grant-eligible program; is completing coursework and other requirements necessary to begin a career in teaching or plans to complete such coursework and requirements prior to graduating; and has (A) (1) A final cumulative secondary school grade point average (GPA) upon graduation of at least 3.25 on a 4.0 scale, or the numeric equivalent; or (2) A cumulative GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, based on courses taken at the institution through the most-recently completed payment period; (B) If the student is beyond the first year of a program of undergraduate education as determined by the institution, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the most recently completed payment period; (C) If the student is a graduate student during the first payment period, a cumulative undergraduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent; (D) If the student is a graduate student beyond the first payment period, a cumulative graduate GPA of at least 3.25 on a 4.0 scale, or the numeric equivalent, through the most-recently completed payment period; or (E) A score above the 75th percentile of scores achieved by all students taking the test during the period the student took the test on at least one of the batteries from a nationally-normed standardized undergraduate, graduate, or postbaccalaureate admissions test, except that such test may not include a placement test. Condition: For 1 student tested, the student was determined to be ineligible for the TEACH Grant, based on the student GPA and not exceeding the 75th percentile in one ACT area. Question Costs: Not applicable. Context: Noncompliance with federal regulations for 1 of 2 students who were tested for TEACH Grant eligibility. The student was determined to be ineligible for the TEACH Grant. The University distributed the funds to the student during the fiscal year under audit. Subsequent to year end the University returned those funds back to the Department of Education through the G5 portal. A total of 3 students were issued TEACH Grants by the University during fiscal year 2025. Effect: The accuracy of TEACH Grant eligibility is important in determining which students qualify for the grant and if they complete the grant agreement, will not have to pay back the grant. If the student becomes ineligible or changes their mind the grant can be turned into a direct loan. Cause: It does not appear that there are proper processes in place to verify eligibility for TEACH Grants before issuing the Grant to the student account. Recommendation: It is recommended that policies and procedures to verify TEACH Grant eligibility prior to distributing the Grant to a student.