Finding 1099713 (2024-002)

CRITERIA: 34 CFR part 690 establishes rules governing the accuracy and timeliness of enrollment reporting to the National Student Loan Data System (“NSLDS”). Schools are required to confirm and report to the National Student Loan Data System (“NSLDS”) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: Through our Enrollment Reporting testing, we noted 5 out of 40 selections for which the students had a change in enrollment status but were not included in the enrollment reporting to NSLDS within 60 days of the change in enrollment. QUESTIONED COSTS: None. CAUSE/EFFECT: The automated Banner reports that process student enrollment status changes in Banner and notifies the College of students to send to the National Student Clearinghouse (NSC) for reporting to NSLDS did not include all students with changes. As the system report did not include the appropriate details for the student changes, as they were not included in the report, they were not included in the reports sent to NSC for reporting. As such, the required enrollment reporting for these students was not performed timely and the College was not in compliance with the Enrollment Reporting timeline requirements. RECOMMENDATION: The auditor recommends the College enhance its controls and incorporate multiple individuals in the process to ensure that student enrollment changes are captured and reported timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely reporting to NSC is performed.