Finding 1115594 (2024-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-28
Audit: 349884
Organization: Felician University (NJ)

AI Summary

  • Core Issue: The University failed to accurately and timely report student enrollment data to the NSLDS, leading to a material weakness in internal controls.
  • Impacted Requirements: Reporting requirements include timely updates on enrollment status and accurate program details, with specific deadlines of 30 or 60 days for changes.
  • Recommended Follow-Up: The University should review and improve its procedures and compliance with ED regulations regarding NSLDS reporting to prevent future inaccuracies.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loans Assistance Listing Number: 84.063; 84.268 Federal Award Identification Number and Year: P063P241812; P063Q231812; P268K251812 – 2024 Award Period: July 01, 2023 – June 30, 2024 Type of Finding: • Material Weakness in Internal Control over Compliance, Material Noncompliance (Modified Opinion) Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. 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. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not accurately or timely reported to the NSLDS. Questioned costs: None. Context: During our testing of enrollment information at both the program and campus-level detail, we noted the following: • 4 out of 60 students were never reported to the NSLDS • 20 out of 60 students’ change in status were not reported timely to the NSLDS • 3 out of 60 students’ enrollment status were not being certified at least every 60 days within the NSLDS • 12 out of 60 students’ program begin dates were reported incorrectly to the NSLDS • 2 out of 60 students were reported to the NSLDS with an incorrect enrollment status per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect effective date per campus-level records • 3 out of 60 students were reported to the NSLDS with an incorrect enrollment status per program-level records • 5 out of 60 students were reported to the NSLDS with an incorrect effective date per program-level records Cause: The University uses a third-party servicer to submit their enrollment reports to the NSLDS. The enrollment information that was sent to the third-party servicer did not have enrollment information that followed the NSLDS guidelines. Effect: Inaccurate reporting to the NSLDS can result in incorrect determination of when the students’ grace period should begin. Repeat finding: Yes, 2023-003. Recommendation: We recommend the University evaluate its procedures and review regulations set by the Department of Education around NSLDS to ensure the University understands the definitions for each enrollment information that gets reported. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Material Weakness

Other Findings in this Audit

  • 539152 2024-001
    Material Weakness Repeat
  • 539153 2024-001
    Material Weakness Repeat
  • 539154 2024-002
    Significant Deficiency Repeat
  • 539155 2024-002
    Significant Deficiency Repeat
  • 539156 2024-003
    Significant Deficiency
  • 539157 2024-003
    Significant Deficiency
  • 539158 2024-003
    Significant Deficiency
  • 539159 2024-003
    Significant Deficiency
  • 539160 2024-004
    Significant Deficiency
  • 539161 2024-004
    Significant Deficiency
  • 539162 2024-004
    Significant Deficiency
  • 539163 2024-004
    Significant Deficiency
  • 539164 2024-005
    Significant Deficiency Repeat
  • 539165 2024-006
    Material Weakness
  • 1115595 2024-001
    Material Weakness Repeat
  • 1115596 2024-002
    Significant Deficiency Repeat
  • 1115597 2024-002
    Significant Deficiency Repeat
  • 1115598 2024-003
    Significant Deficiency
  • 1115599 2024-003
    Significant Deficiency
  • 1115600 2024-003
    Significant Deficiency
  • 1115601 2024-003
    Significant Deficiency
  • 1115602 2024-004
    Significant Deficiency
  • 1115603 2024-004
    Significant Deficiency
  • 1115604 2024-004
    Significant Deficiency
  • 1115605 2024-004
    Significant Deficiency
  • 1115606 2024-005
    Significant Deficiency Repeat
  • 1115607 2024-006
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $12.78M
84.063 Federal Pell Grant Program $5.78M
11.028 Connecting Minority Communities Pilot Program $1.64M
84.007 Federal Supplemental Educational Opportunity Grants $358,880
47.076 Stem Education (formerly Education and Human Resources) $191,500
84.031 Higher Education Institutional Aid $176,502
84.033 Federal Work-Study Program $112,051
47.075 Social, Behavioral, and Economic Sciences $84,894
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $68,039
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $12,609