Finding 1162609 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-11-18
Audit: 372291
Organization: Arlington Baptist University (CO)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The University failed to report enrollment and program information to NSLDS accurately and on time.
  • Impacted Requirements: Compliance with 34 CFR 685.309, affecting students' loan grace periods and repayment eligibility.
  • Recommended Follow-Up: Collaborate with the third-party servicer to correct CIP code mapping and improve campus enrollment data reporting.

Finding Text

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268 Federal Direct Student Loans and 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The University did not report enrollment and program information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 685.309 Questioned Costs: $0 Context: Out of 60 students tested, 6 students were not reported correctly for campus enrollment, and 7 students were not reported correctly for program enrollment. All campus enrollments were corrected during the audit process. Cause: The University contracted with a third-party servicer to assist with enrollment reporting. For program enrollment, certain CIP codes were mapped to one code in NSLDS, which resulted in the students not being reported accurately. For the campus enrollment, three students were not reported as graduated, and three students were withdrawals and did not have the correct effective date reported. Of the six students who were not reported correctly for campus enrollment, three of them did not have any loans, so there was no impact on these students. Effect: Inaccurate reporting can impact a student’s loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: Yes, 2024-001 Recommendation: We recommend the University work with the third-party servicer to properly map CIP codes and determine how campus enrollment data can be pulled out of the system to appropriately update NSLDS. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Enrollment Reporting to National Student Loan Data System (NSLDS) Planned Corrective Action: Financial aid will be working closely with the Registrar and the Vice President of Academic Affairs to clean up all current records and CIP codes. The OFA and VPAA will maintain a schedule for updates of student statuses and CIP codes. The OFA will also use a secondary person to view reports before transmission. OFA will work with NCH to update CIP codes. Person Responsible for Corrective Action Plan: Stephanie Castillo, Director of Financial Aid Penny Hayes, Vice President of Academic Affairs Anticipated Date of Completion: Fall 2026

Categories

Student Financial Aid Reporting Eligibility Material Weakness

Other Findings in this Audit

  • 1162608 2025-001
    Material Weakness Repeat
  • 1162610 2025-002
    Material Weakness Repeat
  • 1162611 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $2.09M
84.063 FEDERAL PELL GRANT PROGRAM $913,650
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $10,217
84.033 FEDERAL WORK-STUDY PROGRAM $8,619