Audit 396008

Agencies: U.S Department of Education Federal Assistance Listing Number: 84.038, 84.063, 84.007, 84.033, 84.268, and 84.379 Programs: Student financial assistance cluster Criteria: The College is responsible for designing, implementing, and maintaining internal control over compliance for special tests and provisions and for accurately reporting significant data elements under the Campus-Level and Program-Level records within the National Student Loan Data System (NSLDS) that the Department of Education (ED) considers high risk. Condition: Management's review of the enrollment reporting did not prevent and detect that 2 student's change status was not reported to NSLDS within the required timeframe. Questioned Costs: The amount of questioned costs could not be determined. Context: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We found another instance of a student’s information not reported timely, however management did eventually detect and correct the error outside the required timeframe. The sample was not statistically valid. Cause: The College's internal control over compliance for enrollment and special tests were not operating effectively which led to noncompliance. Effect: The change status for 2 of 50 students selected for the sample were not reported timely within NSLDS however internal controls over compliance did detect and correct the errors. Recommendation: We recommend the College review internal controls over enrollment reporting to ensure student change status changes get reported to NSLDS timely. Management Response: Management agrees and has implemented necessary procedures/controls to ensure the College is in compliance with enrollment requirements. Management has corrected the student’s change status not previously reported.