Finding 1163423 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-03
Audit: 372942
Organization: Midland Univeristy (NE)

AI Summary

  • Core Issue: The University reported incorrect or late enrollment information for 2 out of 25 students, violating Title IV regulations.
  • Impacted Requirements: Institutions must update and return enrollment reports accurately and within specified timeframes to the Secretary.
  • Recommended Follow-Up: Revise procedures and controls for NSLDS reporting; ensure ongoing communication between the Financial Aid and Registrar offices.

Finding Text

Finding 2025-002: Significant Deficiency – NSLDS Enrollment Reporting Federal Program: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Assistance Listing Number (ALN): 84.268 Federal Award Number: P268K251780 Federal Award Year: June 30, 2025 Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student 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; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition/Context: Of the 25 students tested, two students had incorrect or late information reported. One student’s withdrawn date reported in spring 2025 was incorrect and did not agree to the University’s documentation to support the date of determination. A second student’s status’ certification date was reported 71 days after their date of determination. The sample was not a statistically valid sample. Cause: The University's controls surrounding the reporting of students’ statuses and status effective dates to the National Student Loan Data System (NSLDS) did not appropriately ensure the information was submitted accurately or timely. Effect: Information reported to NSLDS was either incorrect or not updated timely. Questioned Costs: N/A Recommendation: The University should revise its procedures and controls to ensure NSLDS enrollment reporting is completed accurately and timely for all students’ status and status effective dates. Management's Response: The University agrees with the finding. The University believes this was an isolated incident related to the turnover of the Financial Aid Director position in coordination with the registrar’s office that performs the NSLDS reporting. Beginning in Summer 2025, the new Financial Aid Director and Registrar have been meeting bi-weekly to discuss all aspects of enrollment reporting. This will ensure that both offices are aware of reporting requirements and timelines.

Corrective Action Plan

Midland University Corrective Action Plan For the Year Ended May 31, 2025 Finding 2025-002: Significant Deficiency - NSLDS Enrollment Reporting Condition: Of the 25 students tested, two students had incorrect or late information reported. One student's withdrawn date reported in spring 2025 did not agree to the University's documentation to support the date of determination. A second student's status' certification date was reported 71 days after their date of determination. Corrective Action Plan: Beginning in Summer 2025, the new Financial Aid Director and Registrar have been meeting bi-weekly to discuss all aspects of enrollment reporting. This will ensure that both offices are aware of reporting requirements and timelines. Name(s) of Contact Person(s) Responsible for Corrective Action: Jon Dechant, Director of Financial Aid & Joseph Harnisch, CFO Anticipated Completion Date: Finding 2025-002: Completed in July 2025

Categories

Student Financial Aid Subrecipient Monitoring Reporting Significant Deficiency

Other Findings in this Audit

  • 1163422 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.17M
84.063 FEDERAL PELL GRANT PROGRAM $2.49M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $1.12M
93.600 HEAD START $1.02M
84.033 FEDERAL WORK-STUDY PROGRAM $173,715
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $134,069
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $20,746