FAC Explorer

Finding 1077572 (2023-004)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2024-09-30
Audit: 323383
Organization: The Carle Foundation (IL)
Auditor: Kpmg

AI Summary

  • Core Issue: Methodist College failed to report student address and enrollment changes accurately and on time to the NSLDS, impacting loan eligibility and deferments.
  • Impacted Requirements: The College did not comply with 34 CFR Section 685.309, which mandates timely reporting of enrollment changes within specific timeframes.
  • Recommended Follow-Up: The College should review and improve its reporting procedures to ensure accurate and timely submissions to the NSLDS.

Finding Text

Finding 2023 004: Inaccurate and Untimely Enrollment Reporting Condition Found Methodist College did not accurately and/or timely report student address changes and student enrollment status changes at both the campus-level and program-level to the National Student Loan Data System (NSLDS). The U.S. Department of Education (USDE) uses enrollment data reported by the College to determine: (1) eligibility for interest subsidies, (2) loan repayment start dates, and (3) in-school loan deferments. The enrollment information is also used by USDE to measure program completion data to evaluate the effectiveness of financial aid programs. Additionally, changes in a student’s permanent address are used by USDE to service loans. During our testing of enrollment reporting at the College, we noted that no submissions were made to NSLDS for the period 4/1/2023 to 12/31/2023. Further, we noted review controls were not implemented in the period to ensure enrollment and student data submitted to NSLDS was accurate and sent in accordance with required timeframes. The College disbursed FDL loans to 292 students and Pell grants to 193 students during the year ended December 31, 2023 for which enrollment reporting requirements applied. The number of undergraduate students enrolled in the College during fiscal year 2023 was 528. Criteria According to 34 CFR Section 685.309, under the Federal Direct loan program, institutions must complete and return the Enrollment Reporting roster file via NSLDS within 15 days of receipt. Enrollment information must be reported within 30 days whenever attendance changes for students unless a roster will be submitted within 60 days. An institution must notify the Secretary of Education if it 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. In addition, 2 CFR 200.303 requires nonfederal entities to, among other things, establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. Effective internal controls should include establishing procedures to ensure student campus and program-level enrollment status changes and address changes are accurately and timely reported to the NSLDS. Cause In discussing these conditions with College officials, they stated that NSC was part of a security breach and when they were fixing their processes, Methodist College got incorrectly linked to Methodist University in Fayetteville, NC causing submissions to report incorrectly on our end. Possible Asserted Effect Inaccurate and delayed submission of student enrollment status and student information affects the determinations that lenders and servicers of student loans make related to in school deferments, grace periods, and repayment schedules, as well as the federal government’s payment of interest subsidies. Repeat Finding A similar finding was not reported in the prior year audit. Statistical Sampling No sampling was performed. Recommendation We recommend the College review its procedures to ensure timely and accurate reporting of student information and enrollment status information to the NSLDS. Views of Carle management: Methodist College agrees with the finding of inaccurate and delayed submissions and have been working to get everything caught back up now that NSC has fixed their security breach and incorrectly linking us to the wrong college.

Categories

Student Financial Aid Reporting Eligibility Period of Performance Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 501115 2023-001
    Material Weakness Repeat
  • 501116 2023-001
    Material Weakness Repeat
  • 501117 2023-001
    Material Weakness Repeat
  • 501118 2023-001
    Material Weakness Repeat
  • 501119 2023-002
    Material Weakness
  • 501120 2023-002
    Material Weakness
  • 501121 2023-002
    Material Weakness
  • 501122 2023-002
    Material Weakness
  • 501123 2023-003
    Material Weakness
  • 501124 2023-003
    Material Weakness
  • 501125 2023-003
    Material Weakness
  • 501126 2023-003
    Material Weakness
  • 501127 2023-004
    Material Weakness
  • 501128 2023-004
    Material Weakness
  • 501129 2023-004
    Material Weakness
  • 501130 2023-004
    Material Weakness
  • 1077557 2023-001
    Material Weakness Repeat
  • 1077558 2023-001
    Material Weakness Repeat
  • 1077559 2023-001
    Material Weakness Repeat
  • 1077560 2023-001
    Material Weakness Repeat
  • 1077561 2023-002
    Material Weakness
  • 1077562 2023-002
    Material Weakness
  • 1077563 2023-002
    Material Weakness
  • 1077564 2023-002
    Material Weakness
  • 1077565 2023-003
    Material Weakness
  • 1077566 2023-003
    Material Weakness
  • 1077567 2023-003
    Material Weakness
  • 1077568 2023-003
    Material Weakness
  • 1077569 2023-004
    Material Weakness
  • 1077570 2023-004
    Material Weakness
  • 1077571 2023-004
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
93.399 Cancer Control $2.41M
84.268 Federal Direct Student Loans $2.28M
32.006 Covid-19 Telehealth Program $643,231
93.829 Section 223 Demonstration Programs to Improve Community Mental Health Services $604,775
21.027 Coronavirus State and Local Fiscal Recovery Funds $600,000
84.063 Federal Pell Grant Program $599,878
93.470 Elder Abuse Prevention Interventions Program $552,758
93.846 Arthritis, Musculoskeletal and Skin Diseases Research $370,562
93.045 Special Programs for the Aging, Title Iii, Part C, Nutrition Services $352,357
93.889 National Bioterrorism Hospital Preparedness Program $144,106
93.788 Opioid Str $144,025
93.044 Special Programs for the Aging, Title Iii, Part B, Grants for Supportive Services and Senior Centers $132,939
84.425 Education Stabilization Fund $100,731
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $95,760
14.181 Supportive Housing for Persons with Disabilities $79,250
93.837 Cardiovascular Diseases Research $76,368
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $72,442
93.958 Block Grants for Community Mental Health Services $72,248
93.052 National Family Caregiver Support, Title Iii, Part E $71,856
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $57,623
93.959 Block Grants for Prevention and Treatment of Substance Abuse $56,582
93.994 Maternal and Child Health Services Block Grant to the States $50,000
93.242 Mental Health Research Grants $48,857
84.007 Federal Supplemental Educational Opportunity Grants $43,718
84.033 Federal Work-Study Program $38,556
93.301 Small Rural Hospital Improvement Grant Program $35,814
93.747 Elder Abuse Prevention Interventions Program $33,688
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $33,094
93.155 Rural Health Research Centers $32,231
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $28,660
93.838 Lung Diseases Research $25,305
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $23,288
93.368 21st Century Cures Act - Precision Medicine Initiative $14,000
93.043 Special Programs for the Aging, Title Iii, Part D, Disease Prevention and Health Promotion Services $6,543
93.279 Drug Abuse and Addiction Research Programs $6,342
93.575 Child Care and Development Block Grant $6,127
12.420 Military Medical Research and Development $5,000
93.865 Child Health and Human Development Extramural Research $1,130
93.569 Community Services Block Grant $1,085
21.006 Tax Counseling for the Elderly $680
93.395 Cancer Treatment Research $624
93.273 Alcohol Research Programs $387
93.041 Special Programs for the Aging, Title Vii, Chapter 3, Programs for Prevention of Elder Abuse, Neglect, and Exploitation $20
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $0