Finding 1135415 (2024-006)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-04-30

AI Summary

  • Core Issue: The University failed to report enrollment changes for three students to the NSLDS, leading to a significant deficiency in internal controls.
  • Impacted Requirements: Noncompliance with federal regulations regarding timely reporting of student enrollment status under Title IV loan programs.
  • Recommended Follow-Up: Strengthen internal procedures and enhance communication between the Financial Aid and Registrar’s Offices to ensure timely updates on student withdrawals.

Finding Text

2024-006 Enrollment Reporting Compliance Requirement Special Tests and Provisions Finding Type Significant Deficiency in Internal Control and Noncompliance Federal Agency US Department of Education ALN 84.007, 84.033. 84.063 and 84.268 Federal Program Student Financial Aid Cluster Criteria As established by OMB No. 1845-0035, Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Additionally, for Direct Loans, as outlined in the 34 CFR § 685.309(b)(2)(i), schools participating in the Direct Loan Program are required to notify the Secretary within 30 days after discovering that a student who received a Title IV loan has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended, unless the school expects to submit its next updated enrollment report within the next 60 days. Furthermore, The FSA Handbook 2023-2024, Volume 5, Chapter 2, Grant Overpayments Section, which indicates that if the school notifies the student about a Title IV overpayment determination and the student takes no action within 45 days, the school must promptly report the student to NSLDS and refer them to the Default Resolution Group. Condition From a sample of twenty-six students selected to test reporting the students' enrollment status, we identified three instances where the University failed to report changes to NSLDS during the 2023–2024 academic year. These involved students who officially or unofficially withdrew from the program. Cause Lack of proper execution of required follow-up activities, procedures, and processes, to notify the US Department of Education (ED) via the NSLDS of the withdrawal status of students after their withdrawal determination. Effect Effects or possible effects of the condition include risk that student loan services may not initiate proper repayment schedules or deferments, and Improper Disbursements or overaward to ineligible students in current or future periods (academic sessions). Additionally, this results in noncompliance with Federal Regulations. Questioned Costs None Recommendation We recommend that the University should strengthen its internal procedures and/or implement additional controls to identify unofficial withdrawals and ensure timely updates to the NSLDS. This includes improved coordination and communication between the Financial Aid Office and the Registrar’s Office to proactively monitor students flagged with a withdrawal with grade F (WF) before and at the end of the academic session, as well as ensuring consistency and reconciliation between the reports and systems used to identify withdrawals. Views of responsible official Refer to Corrective Action Plan (Unaudited)

Categories

Student Financial Aid Special Tests & Provisions Eligibility Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 558946 2024-001
    Significant Deficiency
  • 558947 2024-001
    Significant Deficiency
  • 558948 2024-001
    Significant Deficiency
  • 558949 2024-002
    Significant Deficiency
  • 558950 2024-002
    Significant Deficiency
  • 558951 2024-002
    Significant Deficiency
  • 558952 2024-002
    Significant Deficiency
  • 558953 2024-002
    Significant Deficiency
  • 558954 2024-002
    Significant Deficiency
  • 558955 2024-002
    Significant Deficiency
  • 558956 2024-003
    Significant Deficiency
  • 558957 2024-003
    Significant Deficiency
  • 558958 2024-003
    Significant Deficiency
  • 558959 2024-003
    Significant Deficiency
  • 558960 2024-003
    Significant Deficiency
  • 558961 2024-003
    Significant Deficiency
  • 558962 2024-003
    Significant Deficiency
  • 558963 2024-003
    Significant Deficiency
  • 558964 2024-003
    Significant Deficiency
  • 558965 2024-004
    Significant Deficiency
  • 558966 2024-004
    Significant Deficiency
  • 558967 2024-004
    Significant Deficiency
  • 558968 2024-004
    Significant Deficiency
  • 558969 2024-005
    Material Weakness
  • 558970 2024-005
    Material Weakness
  • 558971 2024-006
    Significant Deficiency
  • 558972 2024-006
    Significant Deficiency
  • 558973 2024-006
    Significant Deficiency
  • 558974 2024-006
    Significant Deficiency
  • 1135388 2024-001
    Significant Deficiency
  • 1135389 2024-001
    Significant Deficiency
  • 1135390 2024-001
    Significant Deficiency
  • 1135391 2024-002
    Significant Deficiency
  • 1135392 2024-002
    Significant Deficiency
  • 1135393 2024-002
    Significant Deficiency
  • 1135394 2024-002
    Significant Deficiency
  • 1135395 2024-002
    Significant Deficiency
  • 1135396 2024-002
    Significant Deficiency
  • 1135397 2024-002
    Significant Deficiency
  • 1135398 2024-003
    Significant Deficiency
  • 1135399 2024-003
    Significant Deficiency
  • 1135400 2024-003
    Significant Deficiency
  • 1135401 2024-003
    Significant Deficiency
  • 1135402 2024-003
    Significant Deficiency
  • 1135403 2024-003
    Significant Deficiency
  • 1135404 2024-003
    Significant Deficiency
  • 1135405 2024-003
    Significant Deficiency
  • 1135406 2024-003
    Significant Deficiency
  • 1135407 2024-004
    Significant Deficiency
  • 1135408 2024-004
    Significant Deficiency
  • 1135409 2024-004
    Significant Deficiency
  • 1135410 2024-004
    Significant Deficiency
  • 1135411 2024-005
    Material Weakness
  • 1135412 2024-005
    Material Weakness
  • 1135413 2024-006
    Significant Deficiency
  • 1135414 2024-006
    Significant Deficiency
  • 1135416 2024-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $12.81M
84.268 Federal Direct Student Loans $12.14M
84.425 Education Stabilization Fund $1.23M
84.031 Higher Education Institutional Aid $836,606
84.033 Federal Work-Study Program $323,094
84.007 Federal Supplemental Educational Opportunity Grants $306,331
84.042 Trio Student Support Services $246,657
12.902 Information Security Grants $76,568
12.905 Cybersecurity Core Curriculum $57,926
12.630 Basic, Applied, and Advanced Research in Science and Engineering $55,252
20.616 National Priority Safety Programs $42,011
12.903 Gencyber Grants Program $38,959
47.076 Stem Education (formerly Education and Human Resources) $36,555
11.307 Economic Adjustment Assistance $493