Finding 1162112 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-11-07
Audit: 371906
Organization: Lake Forest College (IL)
Auditor: RSM US LLP

AI Summary

  • Core Issue: The College failed to report changes in student enrollment status to NSLDS on time for 7.5% of cases, which is a repeat finding.
  • Impacted Requirements: Compliance with CFR sections 685.309 and 690.83(b)(2) for timely reporting and maintaining internal controls as per Uniform Grant Guidance (2 CFR 200.303).
  • Recommended Follow-Up: Implement review procedures to ensure accurate reporting of enrollment status changes to NSLDS to prevent future noncompliance.

Finding Text

Finding 2025-004 – Enrollment Reporting (Significant Deficiency) Repeat Finding: No Federal Agency – U.S. Department of Education (ED) Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Work Study Program: 84.033 Federal Supplemental Educational Opportunity Grants 84.007 Federal Award Years: Year Ended May 31, 2025 Condition For three out of forty (7.5%) student enrollment reporting selections, the student's status change at the campus level and program was not properly reported to NSLDS with the required timeframe. Criteria CFR section 685.309 and 690.83(b)(2) requires the College to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student’s date of determination of withdrawal. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure accurate and timely enrollment reporting Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause The student's status change was after the last scheduled reporting transmission file of the semester, therefore their status change was not captured in the NSLDS reporting submission. Context Three out of forty students selected for testing. Effect Failure to report status changes accurately is noncompliance with Federal regulation and could result in heightened monitoring by the Department of Education. Recommendation We recommend the College implement review procedures to ensure that the proper effective date is being reported to the NSLDS when a student withdraws or has an enrollment status change. A system of review procedures and/or controls will ensure the College is reporting status changes accurately. Views of responsible officials We agree with this finding. See corrective action plan.

Corrective Action Plan

Finding 2025-004: Student Financial Aid – Enrollment Reporting Finding: For four out of forty (10%) student enrollment reporting selections, the student's status change at the campus level and program was not properly reported to NSLDS with the required timeframe. Cause: The student's status change was after the last scheduled reporting transmission file of the semester, therefore their status change was not captured in the NSLDS reporting submission. Corrective Actions Taken or Planned: During the Summer of 2024, the Registrar’s Office was undergoing a period of transition. The newly appointed Registrar, Mai Aly, had just started in her role, and the Associate Registrar was out on medical leave. This staffing disruption contributed to delays in identifying and processing student status changes, which in turn impacted the timeliness of NSLDS reporting. To address this issue and strengthen compliance with NSLDS reporting requirements, the College has implemented the following measures: 1. Operations Calendar: The Registrar’s Office has developed and implemented a comprehensive Operations Calendar. As part of this calendar, withdrawal reporting tasks have been scheduled at the beginning of June, July, and August to ensure timely identification and submission of summer enrollment changes. 2. Designated Responsibility: The Associate Registrar has been assigned as the primary staff member responsible for reporting summer withdrawals to the National Student Clearinghouse (NSC), ensuring continuity and accountability in the reporting process. 3. Staff Training and Documentation: Relevant staff have been retrained on NSC/NSLDS reporting requirements to reinforce procedures for monitoring and reporting enrollment changes during the summer months to prevent future summer enrollment reporting issues. Contact Person Responsible: Jennifer Kenworth, Associate Registrar Lake Forest College Completion Date: 11/1/2025

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1162100 2025-001
    Material Weakness Repeat
  • 1162101 2025-001
    Material Weakness Repeat
  • 1162102 2025-001
    Material Weakness Repeat
  • 1162103 2025-001
    Material Weakness Repeat
  • 1162104 2025-001
    Material Weakness Repeat
  • 1162105 2025-001
    Material Weakness Repeat
  • 1162106 2025-002
    Material Weakness Repeat
  • 1162107 2025-002
    Material Weakness Repeat
  • 1162108 2025-003
    Material Weakness Repeat
  • 1162109 2025-004
    Material Weakness Repeat
  • 1162110 2025-004
    Material Weakness Repeat
  • 1162111 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $7.89M
84.063 FEDERAL PELL GRANT PROGRAM $3.97M
84.038 FEDERAL PERKINS LOAN PROGRAM $570,085
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $477,510
84.033 FEDERAL WORK-STUDY PROGRAM $298,829
93.855 ALLERGY AND INFECTIOUS DISEASES RESEARCH $99,020
47.074 BIOLOGICAL SCIENCES $79,610
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $16,799
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $8,290
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $-1,831