Finding 1160397 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-14
Audit: 370810
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to enrollment reporting for Federal Direct Student Loans.
  • Impacted Requirements: Compliance with 34 CFR 685.309, which outlines the necessary administrative and fiscal controls for accurate enrollment reporting.
  • Recommended Follow-Up: Conduct monthly spot checks on enrollment status changes and review any unusual cases on the NSLDS site to ensure accurate reporting.

Finding Text

Finding 2025-001 Department of Education Student Financial Aid Cluster Federal Financial Assistance Listing #84.268 – Federal Direct Student Loans, Award Year 2025, Award Numbers P268K252288 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: Four students had incorrect status change effective dates reported to NSLDS. Cause: An error in system parameters caused the automated reporting module to transmit the date of student file change rather than the actual date of enrollment status changes. 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 1,473 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.

Corrective Action Plan

Finding 2025-001 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN: 84.268 Finding Summary: For a small group of students with very specific circumstances, our software’s enrollment report autopopulated an effective date of enrollment change that did not match the actual effective date. UMHB did not realize that these specific circumstances would require manual processes to identify and correct the enrollment report prior to submission. As a result, four students had incorrect status change effective dates reported to NSLDS. Responsible Individuals: Trent Bridges, Director Data Quality and Institutional Analytics Corrective Action Plan: UMHB plans to implement the following: 1. Review all the coding on system reports used for NSLDS reporting to assess accuracy and completeness of the data based on any changes in business practice and make updates to system reports as necessary. 2. Update internal process to document any required special handling of records based on system limitations. 3. Reassess system report and processes used for NSLDS reporting prior to the beginning of each fall and spring semester. Anticipated Completion Date: Fall 2025

Categories

Student Financial Aid Special Tests & Provisions Reporting Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $37.48M
84.033 Federal Work-Study Program $518,565
84.007 Federal Supplemental Educational Opportunity Grants $201,029
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $9,430
84.038 Federal Perkins Loan Program $2,639
84.063 Federal Pell Grant Program $40