Finding 1164289 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-09

AI Summary

  • Core Issue: 30% of students with enrollment changes were not reported to NSLDS on time, and 5% had inaccurate status reports.
  • Impacted Requirements: Compliance with CFR sections 685.309 and 690.83(b)(2) for timely and accurate reporting of student status changes.
  • Recommended Follow-Up: Implement review procedures to ensure timely and accurate reporting of enrollment status changes to NSLDS.

Finding Text

Finding 2025-001 – NSLDS Reporting Repeat Finding: Yes Federal Program Title – U.S. Department of Education 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 Year 2024-2025 Award Numbers: P063P242988, P063P232988, P007A241227, P007A231227, P033A241227, P268K252988, P268K242988 Condition For eighteen out of sixty students tested (30%) who had enrollment changes at the College, the students' status effective dates at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) timely. For three out of sixty students tested (5%) who had enrollment changes at the College, the students' status at the campus level and program level were not reported to the NSLDS accurately. 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 designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure that enrollment status changes are reported timely. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause During the reporting period, the processing of the spring subsequent term file was delayed due to program mismatches reported to National Student Clearinghouse (NSC), which resulted in a significant volume of ER1568 errors. The resolution required extensive troubleshooting and the implementation of corrective measures, which extended the time needed to complete processing. Reporting of the College’s spring graduates was also delayed due to a missing reporting date within NSC. An alternative date was provided, and the Grads Only file was submitted on September 2, 2025. Context Frequent. Twenty-one out of sixty students selected for testing. Effect Failure to report status changes accurately and timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend the College implement review procedures to ensure that the proper effective date is reported timely 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

Corrective Action Planned: Responsibility for reporting has been reassigned to a senior staff member. A secondary review process has been established, requiring managerial verification before submission. Additionally, monthly reconciliations will be conducted to ensure that all status changes are reported accurately and within the required timelines. Timeline: Reassignment of reporting responsibility: Effective immediately. Establishment of secondary review and reconciliation procedures: Within 30 days. Monthly reconciliation review: No later than November 30, 2025. Anticipated Completion Date: June 30, 2026 Responsible Person: Tasha Campbell, Director of Financial Aid campbellt68@morainevalley.edu

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1164283 2025-001
    Material Weakness Repeat
  • 1164284 2025-001
    Material Weakness Repeat
  • 1164285 2025-001
    Material Weakness Repeat
  • 1164286 2025-001
    Material Weakness Repeat
  • 1164287 2025-001
    Material Weakness Repeat
  • 1164288 2025-001
    Material Weakness Repeat
  • 1164290 2025-002
    Material Weakness Repeat
  • 1164291 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $737,642
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $625,047
17.259 WIOA YOUTH ACTIVITIES $345,354
84.042 TRIO STUDENT SUPPORT SERVICES $333,204
84.044 TRIO TALENT SEARCH $322,280
84.033 FEDERAL WORK-STUDY PROGRAM $316,571
84.047 TRIO UPWARD BOUND $214,869
84.063 FEDERAL PELL GRANT PROGRAM $187,472
64.028 POST-9/11 VETERANS EDUCATIONAL ASSISTANCE $184,987
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $60,951
17.258 WIOA ADULT PROGRAM $36,158
12.905 CYBERSECURITY CORE CURRICULUM $36,083
11.620 SCIENCE, TECHNOLOGY, BUSINESS AND/OR EDUCATION OUTREACH $35,351
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $34,195
64.116 VETERAN READINESS AND EMPLOYMENT $31,739
93.667 SOCIAL SERVICES BLOCK GRANT $26,248
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $16,200
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $14,313
84.268 FEDERAL DIRECT STUDENT LOANS $12,711