Audit 395390

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, 84.063; Federal Direct Student Loan Program, 84.268. Program Year – July 1, 2024 – June 30, 2025 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – Under the Pell grant and loan programs, colleges must complete and return within 30 days the Enrollment Reporting roster file. Once 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 NSLDS web site. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Unless the school expects to complete its next roster within 60 days, the University must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. (Pell, 34 CFR Section 690.83(b)(2); Direct Loan, 34 CFR Section 685.309(2)(i)). Condition – Notification of the student status change (graduated, withdrew, less than half-time) did not reach the NSLDS within the required timeframe. Questioned Costs – None – nonmonetary finding Context – Out of a sample of 25 students from a population of 280 students who had changes in status during the year, NSLDS was not provided timely notification for 6 of the student status changes reviewed. Our sample was not, and was not intended to be, statistically valid. Cause – In July of 2024, Bluffton University faced significant institutional turnover. The Registrar left the institution. The appointed successor to the Financial Aid Director then made a decision to leave the institution also in June 2024. This institutional turmoil created upheaval in the department and required the assistance of a part time staff member. As a result the University reached out their representative at NSLDS for assistance and were informed that they could slow down the reporting over the summer to help to relieve the administrative burden placed on them during this time. In this situation, Bluffton mistakenly assumed that this was appropriate and waited until the Fall to begin submitting files again to the NSLDS. Effect – The status change was ultimately reported correctly to NSLDS but was not performed timely. Identification as a Repeat Finding – N/A Recommendation – We recommend the University ensure the remittance schedule is properly established to allow for timely remittance. Views of Responsible Officials and Planned Corrective Actions – The Registrar and Student Financial Aid Director will both ensure that any students that have updated their status are updated on a weekly basis. Registrar’s office will log into NSLDS to upload the file, and the CFO, Registrar, and Student Financial Aid Director will monitor updates monthly.