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 15 out of the 40 students’ enrollment effective report to NSLDS did not match the Academy’s records. Furthermore, we noted 22 out of the 40 students did not have their enrollment certified every 60 days. Lastly, we noted 1 out of 40 students change in status was not reported in a timely manner.
Questioned costs: None
Context: During our testing, it was noted the Academy does not have a process in place to ensure timeliness and accuracy of NSLDS reporting.
Cause: The Academy did not have a process in place to ensure the effective dates reported matched the University’s records as well as that these changes were reported timely.
Effect: The enrollment effective date reported to NSLDS is used to determine when the student’s grace period should begin. By not reporting an incorrect effective date, the grace period begin date for the student will be incorrect. In addition, the Academy did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely.
Repeat finding: No
Recommendation: We recommend the Academy 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.