Finding Text
Finding 2024-002
Repeat Finding: No
Major Programs: 84.268 Federal Direct Student Loans Program
Federal Agency: Department of Education
Award Year: July 1, 2023 to June 30, 2024
Compliance Requirement: Special Tests – Enrollment Reporting
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other matters
Questioned Costs: None
Criteria: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits.
Condition and Context: The examination disclosed 2 instances out of 40 student files tested in which NSLDS was not updated correctly. The institution did not accurately report the most recent status of the students.
Effect: The inaccurate status may effect the student’s future Title IV funding.
Cause: It appears the College’s third-party servicer National student Clearing Clearinghouse (NSC) had a breakdown in the communication to NSLDS.
Recommendation: We recommend that the College enhance its internal controls to ensure all information submitted to NSLDS is reviewed for accuracy on a timely basis.
View of responsible officials: The College agrees with the finding and are committed to a corrective action.