Audit 396879

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 - Federal regulations provide that the University is responsible for notifying the National Student Loan Data System (“NSLDS”) of changes in enrollment within 30 days or on an Enrollment Reporting roster file within 60 days. The University’s internal control system did not prevent certain late or missed changes requiring reporting. Cause - The University's processes did not ensure status changes were reported timely. Effect - The University may not be able to timely detect when students are not being included within the Enrollment Reporting roster which could result in the NSLDS not being properly notified of student enrollment changes for Direct Loan and Pell recipients in accordance with federal regulations. Questioned Costs - None. Context - Out of a population of 346 student enrollment status changes requiring NSLDS notification, a sample of 25 student enrollment changes were selected for testing. 2 of the status changes had deviations from reporting requirements. 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 enrollment reporting to determine changes, either on the electronic processes or review processes, that should be made to properly capture enrollment status changes on a timely basis and to properly monitor its third-party service provider for timely reporting as necessary. Views of Responsible Officials and Planned Corrective Action - Management concurs with the finding and recommendation. See further information on the corrective action 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 that 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 within 30 days for students that never began attendance. The University’s internal control system did not prevent certain late disbursements of return of funds. 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 the incorrect calculation of return of funds. Questioned Costs - $2,690 Assistance Listing Number 84.268 Federal Direct Student Loans (This was calculated based on recalculation of refund compared to actual paid) Context - Out of a population of 81 student refunds with total federal aid received of $758,496, a sample of 11 student returns with total federal aid received of $113,221 was selected for testing. One of the selections was over-refunded to the student for Direct Student Loans by $2,673, and one selection was under-refunded to the student for Direct Student Loans by $17. 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 action plan provided by management.