Finding 1163451 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-04
Audit: 373043
Organization: Nebraska Wesleyan University (NE)

AI Summary

  • Core Issue: There were inaccuracies in enrollment status reporting for Title IV loans, affecting compliance with federal regulations.
  • Impacted Requirements: Institutions must update enrollment information accurately and within specified timeframes as per Title IV regulations.
  • Recommended Follow-up: Review and enhance procedures to ensure accurate updates in the National Student Loan Data System (NSLDS), including implementing additional verification and validation steps.

Finding Text

Significant Deficiency – Special Tests and Provisions: Enrollment Reporting Program: Student Financial Assistance Cluster Assistance Listing Number: Various Federal Agency: U.S. Department of Education Federal Award Identification Number: Various Federal Award Year: May 31, 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: For one out of 28 students selected in the sample, the effective date that was reported to the National Student Loan Data System (NSLDS) did not match the date that the student changed status. For a second student, the student’s enrollment status was not correctly reported within the 60 day requirement. The sample was not a statistically valid sample. Questioned Costs: Not applicable. Cause: For the misreported effect date, management speculates a system update in Colleague may have overwritten or re-timestamped the enrollment status change. For the student not reported within 60 days, this issue resulted from a data entry error during batch processing of status updates in Colleague. The incorrect status type was inadvertently applied due to overlapping workflows and timing of updates. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If the University does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records can be inaccurate. Recommendation: The University should review its procedures and controls to ensure that all effective dates for enrollment status changes are updated accurately in NSLDS. Management's Response: To prevent future occurrences, 1) Management has implemented an additional verification step in our status update workflow, 2) Management is reviewing how major changes interact with enrollment status updates in Colleague and 3) Management will implement a validation step to ensure that effective dates reflect the original action date when multiple updates occur in close succession.

Corrective Action Plan

Enrollment Reporting Condition/Context: For one out of 25 students selected in the sample, the effective date that was reported to NSLDS did not match the date that the student changed status. For a second student, the student's enrollment status was not correctly reported within the 60 day requirement Recommendation: The University should review its procedures to ensure that all effective dates for enrollment status chan•;Jes are updated accurately in NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: To prevent future occurrences: • We have implemented an additional verification step in our status update workflow. • We are reviewing how major changes interact with enrollment status updates in Colleague. • We will implement a validation step to ensure that effective dates reflect the original action date when multiple updates occur in close succession. Contact person: Tom Ochsner, Director of Scholarships and Financial Aid Planned completion date for corrective action plan: August 27, 2025 If the Department of Education has questions regarding this plan, please call Tom Ochsner at (402) 465- 2212.

Categories

Student Financial Aid Reporting Special Tests & Provisions Significant Deficiency

Other Findings in this Audit

  • 1163439 2025-003
    Material Weakness Repeat
  • 1163440 2025-002
    Material Weakness Repeat
  • 1163441 2025-003
    Material Weakness Repeat
  • 1163442 2025-002
    Material Weakness Repeat
  • 1163443 2025-002
    Material Weakness Repeat
  • 1163444 2025-003
    Material Weakness Repeat
  • 1163445 2025-002
    Material Weakness Repeat
  • 1163446 2025-003
    Material Weakness Repeat
  • 1163447 2025-002
    Material Weakness Repeat
  • 1163448 2025-003
    Material Weakness Repeat
  • 1163449 2025-002
    Material Weakness Repeat
  • 1163450 2025-003
    Material Weakness Repeat
  • 1163452 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.77M
84.063 FEDERAL PELL GRANT PROGRAM $3.64M
84.422 AMERICAN HISTORY AND CIVICS EDUCATION $735,471
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $163,686
84.033 FEDERAL WORK-STUDY PROGRAM $157,941
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $111,653
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $47,150
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $25,958
99.U03 Connecting Volcanos to the Plasma Environment $3,208
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $2,941
47.083 INTEGRATIVE ACTIVITIES $2,751
47.050 GEOSCIENCES $1,325
45.129 PROMOTION OF THE HUMANITIES FEDERAL/STATE PARTNERSHIP $759
99.U01 Confirming the Europa Torus $110
99.U02 Detective water on metallic M-Type Asteroids in Far-UV $87