Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Aid Cluster – Various
Assistance Listing Numbers: Various
Federal Award Identification Number and Year: Various
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: July 1, 2023, through June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control Over Compliance
Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309(b), states schools must have some arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through an enrollment roster file. The school is required to report changes in the student’s enrollment status, the effective date of the status, and an anticipated completion date as well as program enrollment effective date. Changes to a students' status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: During our testing, we noted 14 out of the 40 students’ enrollment effective date reported to NSLDS did not match the College's records. Furthermore, we noted 1 out of the 40 students’ program enrollment effective date reported to NSLDS did not match the College's records.
Questioned costs: None
Context: During our testing, it was noted the College did not properly follow the process to ensure effectives dates are accurately reported to NSLDS.
Cause: The College’s processes and controls did not ensure that student status changes were properly and timely reported to NSLDS.
Effect: The enrollment effective date reported to NSLDS is used to determine when the student’s grace period should begin. By reporting an incorrect effective date, the grace period begin date for the student will be incorrect.
Repeat finding: Yes – 2023-001
Recommendation: We recommend the College reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely.
Views of responsible officials: There is no disagreement with the audit finding.