Audit 405985

Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 70 students tested, 7 students were not reported accurately to NSLDS. Five of these students showed "No Record Found," and the remaining 2 students did not have the proper enrollment status reported based on the student's transcripts. Cause: The registrar was not aware that there were discrepancies between the reporting done through the National Student Clearinghouse and the National Student Loan Data System. Effect: Inaccurate reporting can impact a student's loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2024-002 and 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly. We also recommend that the College work with NSC to resolve issues with students with No Record Found. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Inaccurate Return of Title IV Funds (R2T4) Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The R2T4 calculation was not completed accurately. Criteria: 34 CFR 668.22 Questioned Costs: $0 Context: Out of 10 students tested, there was 1 R2T4 calculation that was not completed accurately. For this student, the student only attended 1 module and the wrong number of days were used in the initial calculation. As a result of the in accurate calculation, there was an over return of $332 in Federal Direct Loans and $419 in Pell grants to Department of Education. This was corrected during the audit. Cause: Oversight by management. Effect: The wrong amount of federal aid was returned to Department of Education. Identification as repeat finding, if applicable: 2024-003 and 2023-002 Recommendation: We recommend the College implement a review of returns on a regular basis to ensure that the R2T4 calculation is completed accurately and in line with R2T4 regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Need Analysis Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: Students were not properly awarded Federal Direct Loans and Pell grant amounts based on their eligibility. Criteria: 34 CFR 685.200 Questioned Costs: $4,916 Context: Out of 60 students tested for proper need analysis, 2 students were over awarded Federal Direct Loans by $4,916. One student did not have need for Subsidized Loans and the other student was not registered for a term when they received both Subsidized and Unsubsidized Loans. There were an additional 2 students who were under awarded $4,916 in Pell Grant based on their enrollment intensity. These amounts were corrected during the audit. Cause: Oversight by management. Effect: Students were not disbursed the correct amount of federal aid based on their eligibility. Identification as repeat finding, if applicable: 2024-004 Recommendation: We recommend that the College set up reports in the student information system to periodically check for over or under awarding of need based federal aid. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Cash Management Drawdowns from G5 Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not maintain audit support for the amounts drawn down from G5. Criteria: 34 CFR 668.162(c)(3) Questioned Costs: $0 Context: The College was unable to provide student rosters for the amounts drawn down for Federal Direct Loans and Pell Grants to show that amounts were disbursed to students in a timely manner from when the funds were drawn. The College did complete reconciliations between their student accounts and G5 at the end of each term to ensure there was no excess cash on hand. However, we could not determine if funds were disbursed to students within 3 days as required. Cause: Due to turnover at the College, they could not provide audit support for how the amounts were determined to be drawn down. Effect: The College may have inadvertently drawn more funds than they were eligible for. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College use student rosters to determine draw down amounts and that these rosters be reviewed before draw downs are made. This will allow the College to ensure that they are disbursing aid to students timely and that any excess cash on hand is identified timely and returned to the Department of Education timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.