Finding Text
2024-002 Department of Education
Student Financial Aid Cluster
Federal Financial Assistance Listing #84.268 – Federal Direct Student Loans,
Award Year 2024
Special Tests and Provisions – Enrollment Reporting
Significant Deficiency in Internal Controls over Compliance and Compliance
Criteria: 34 CFR 685.309 sets forth the criteria for administrative and fiscal control and accounting requirements
for schools participating in the Federal Direct Loan Program in regard to enrollment reporting requirements.
Condition: The following was noted in testing: 1) One student was not properly reported as graduated in 2024,
2) three students had an incorrect program start date reported (off by 5 days), and 3) one student had an
incorrect withdrawn date (off by 1 day).
Cause: For errors 1 and 2 noted above, the School properly reported in a timely manner the dates to the
National Student Clearinghouse (NSC) and NSC did not report those dates to NSLDS. For the last reporting issue,
an error in entry of the date was made into the system which is used to report to NSLDS, so the date was
incorrectly reported.
Effect: The errors in reporting resulted in reporting dates incorrectly or not reported to NSLDS.
Questioned Costs: None reported
Context/Sampling: A nonstatistical sample of 60 students with a change in status out of 625 students with a
change in status were selected for enrollment reporting requirements.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend a spot check be completed on a monthly basis of changes to ensure those
changes are properly reported. We specifically recommend any known, unusual situations be reviewed on the
NSLDS site to ensure they were properly reported.
Views of Responsible Officials: Management agrees with the finding.