Finding 1125128 (2024-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 352009
Organization: Wilberforce University (OH)

AI Summary

  • Core Issue: The Registrar’s Office failed to notify the NSLDS of student enrollment status changes within the required timeframe, with twelve instances reported over sixty days late.
  • Impacted Requirements: Federal regulations mandate notification to the NSLDS within thirty days of a status change, unless the next filing is due within sixty days.
  • Recommended Follow-Up: Implement new procedures to ensure timely reporting to the NSLDS and enhance understanding of reporting requirements by the Registrar’s Office.

Finding Text

Condition: When the Registrar’s Office discovers that a student did not enroll or ceased to be enrolled on at least a half-time basis, the National Student Loan Data System (NSLDS) should be notified of the change in the student’s enrollment status within thirty days of the occurrence, unless the Institution expects to complete its next scheduled filing within sixty days. During our audit, we noted twelve (12) instances in which student status changes were reported more than sixty (60) days after the occurrence. Context: A haphazard selection of fourteen (14) students was made from the list of student withdrawals and graduates during the year. Criteria: Federal regulations require the Institution to notify the NSLDS of a change in student status (i.e., withdrawn, graduated, enrolled less than half-time, etc.). Unless the Institution expects to complete its next filing within sixty days, the Institution must notify the NSLDS within thirty days if it discovers a student with an outstanding federal loan balance has ceased to be enrolled on at least a half-time basis. [34 CFR 685.309] Effect: The lender or guaranty agency is not receiving prompt notification of changes in borrower’s enrollment status. This results in delayed processing of loan repayment periods and leads to poor default management. Late or incorrect updates to the NSLDS may also cause students to receive loans for which they are not eligible, as half-time enrollment is a requirement for Federal Direct Loan (FDL) eligibility. Cause: Necessary withdrawal documentation is not consistently processed and forwarded to appropriate departments in a timely manner to ensure reports are accurately filed as scheduled. Overall, there is an inadequate process of verifying the enrollment status of students. Recommendation: The Institution should implement procedures to ensure compliance with federal regulations. The Registrar’s Office should obtain a complete understanding of the NSLDS reporting requirements. Improving the accuracy and timeliness of student status filings will aid in the transition of students to loan repayment status. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely basis. Implementation date: Immediately and no later than June 30, 2025. Persons Responsible: Vice President of Business & Finance, the Registrars Office and the Director of Student Financial Aid.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility HUD Housing Programs Reporting

Other Findings in this Audit

  • 548686 2024-005
    Significant Deficiency Repeat
  • 548687 2024-004
    Significant Deficiency Repeat
  • 548688 2024-004
    Significant Deficiency Repeat
  • 548689 2024-004
    Significant Deficiency Repeat
  • 548690 2024-004
    Significant Deficiency Repeat
  • 548691 2024-004
    Significant Deficiency Repeat
  • 1125129 2024-004
    Significant Deficiency Repeat
  • 1125130 2024-004
    Significant Deficiency Repeat
  • 1125131 2024-004
    Significant Deficiency Repeat
  • 1125132 2024-004
    Significant Deficiency Repeat
  • 1125133 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $3.92M
84.063 Federal Pell Grant Program $3.45M
84.031 Higher Education Institutional Aid $1.58M
84.007 Federal Supplemental Educational Opportunity Grants $1.40M
11.028 Connecting Minority Communities Pilot Program $997,062
84.033 Federal Work-Study Program $886,646
84.425 Education Stabilization Fund $617,763
84.382 Strengthening Minority-Serving Institutions $510,213
84.038 Federal Perkins Loan Program_federal Capital Contributions $96,018