Finding 1090727 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-13
Audit: 332540
Organization: Hastings College (NE)
Auditor: Kpmg LLP

AI Summary

  • Core Issue: The College lacks effective internal controls for reviewing program-level enrollment data changes, leading to inaccurate reporting for students who withdrew.
  • Impacted Requirements: Compliance with 2 CFR 690.83(b)(2) and 2 CFR 685.309 regarding timely notification of enrollment changes to the Secretary of Education.
  • Recommended Follow-Up: Enhance internal controls to ensure accurate enrollment reporting and compliance with federal regulations.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Numbers: 84.268 and 84.063 Grant Award Period: July 1, 2023 through June 30, 2024 Grant Identification Numbers: N/A Compliance Requirement: Enrollment Reporting Criteria: 2 CFR 690.83(b)(2) and 2 CFR 685.309 requires participating schools in the Direct Loan Program and Pell Program to notify the Secretary of Education if a Direct Loan or Pell grant has been 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. This notification is required to be reported within 30 days, unless a roster will be submitted within 60 days. 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. Conditions Found: It was identified that the College did not have effective internal controls over the review over program level data changes submitted to National Student Loan Data System (NSLDS) for students who withdrew. During testwork over enrollment reporting, we selected 18 students who withdrew from the College during the fiscal year. We identified 5 students out of 18 selected whose enrollment change dates were not accurately reported to the NSLDS at the program level. For all selections, the enrollment change dates were accurately reported to NSLDS at the campus level. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None identified Repeat Finding: This finding is not a repeat finding in the immediately prior audit. Cause and Effect: The College did not review the listing of changes submitted to NSLDS at the program level, which caused the enrollment change dates for students who withdrew to not be reported accurately at the program level. Recommendation: We recommend the College enhance its internal control to ensure that the College has effective internal controls in place to ensure that the College conforms to required enrollment reporting as set forth in 2 CFR 690.83(b)(2) and 2 CFR 685.309. View of Responsible Officials: We concur with the finding and are in the process of implementing controls over reviewing the accuracy of program level enrollment status changes to ensure that they are appropriately reported to NSLDS.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 514284 2024-001
    Significant Deficiency
  • 514285 2024-001
    Significant Deficiency
  • 1090726 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.36M
84.063 Federal Pell Grant Program $1.45M
84.038 Federal Perkins Loan Program $172,765
84.007 Federal Supplemental Educational Opportunity Grants $103,289
84.033 Federal Work-Study Program $70,868
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088