Finding 1161097 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-10-21
Audit: 371097
Organization: Lenoir-Rhyne University (NC)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to report changes in student enrollment status accurately and on time, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 685.309, which mandates reporting changes within 30 days if not included in the next Roster File to NSLDS.
  • Recommended Follow-Up: Implement new procedures to ensure timely reporting of student status changes and monitor for compliance to prevent recurrence.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: N. Special Tests and Provisions – Enrollment Reporting: Federal regulation 34 CFR 685.309 states that the institution shall accurately report a change in a student’s enrollment status directly to the lender or guarantee agency within 30 days if a student has graduated, withdrawn, or ceased to be enrolled (or failed to enroll) at least half-time and the school does not submit its next Roster File to NSLDS within 60 days. Condition: The University did not report students’ status changes accurately and within the required timeframe. Cause: Significant turnover of staff in the Registrar’s Office. Effect or Possible Effect: The University was not in compliance with required federal guidelines. Questioned Costs: None. Context: Program Level: Based on a sample of 40 students, 29 students’ enrollment status were not accurately reported to the NSLDS. Program Level: Based on a sample of 40 students, 1 student exceeded the maximum time allowed in the program. Campus Level: Based on a sample of 40 students, 4 students’ selected were not reported to the NSLDS within the required timeframe. Campus Level: Based on a sample of 40 students, 5 students’ enrollment effective date was not correctly reported. Identification of Repeat Finding: This is a repeat of prior year finding 2024-001. Recommendation: The University should implement procedures to ensure that student status changes are reported in a timely manner. Views of Responsible Officials: The University experienced significant turnover of staff in the Registrar’s Office in fiscal year 2024. This turnover unfortunately was the catalyst for untimely student status change submissions to the NSLDS. This was identified previously; however, the situation was not able to be rectified until well into the 2025 fiscal year. The University has hired new permanent staff, including an experienced registrar. This group has been working with the clearinghouse personnel to work out errors, and reporting is now being addressed in a timely manner.

Corrective Action Plan

Name of Responsible Individual: Jeni Wyatt, Assistant Provost for Undergraduate Education Condition: The University did not report students' status changes accurately and within the required timeframe. Corrective Action Plan: The University experienced significant turnover of staff in the Registrar’s Office in fiscal year 2024. This turnover unfortunately was the catalyst for untimely student status change submissions to the NSLDS. This was identified previously; however, the situation was not able to be rectified until well into the 2025 fiscal year. The University has hired new permanent staff, including an experienced registrar. This group has been working with the clearinghouse personnel to work out errors, and reporting is now being addressed in a timely manner. Anticipated Completion Date: September 30, 2025

Categories

Student Financial Aid Reporting Special Tests & Provisions

Other Findings in this Audit

  • 1161094 2025-001
    Material Weakness Repeat
  • 1161095 2025-001
    Material Weakness Repeat
  • 1161096 2025-001
    Material Weakness Repeat
  • 1161098 2025-002
    Material Weakness Repeat
  • 1161099 2025-002
    Material Weakness Repeat
  • 1161100 2025-002
    Material Weakness Repeat
  • 1161101 2025-002
    Material Weakness Repeat
  • 1161102 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $17.99M
84.063 FEDERAL PELL GRANT PROGRAM $3.85M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $146,429
84.033 FEDERAL WORK-STUDY PROGRAM $122,039