Finding 1164469 (2025-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2025
Accepted
2025-12-11
Audit: 374010
Organization: Downey Unified School District (CA)
Auditor: NIGRO & NIGRO PC

AI Summary

  • Core Issue: The District failed to report student certification dates to NSLDS within the required 60-day timeframe, leading to non-compliance with federal enrollment reporting requirements.
  • Impacted Requirements: Institutions must accurately report both "Campus Level" and "Program Level" enrollment information as per OMB Compliance Supplement guidelines.
  • Recommended Follow-Up: Implement a robust review process for timely updates and verification of enrollment statuses, and utilize the new Campus Café system for accurate reporting to NSLDS.

Finding Text

Finding 2025-001: NSLDS Reporting Requirements (50000) This is not a repeat finding. Program Identification: Federal Agency: U.S. Department of Education Program Names: Federal Pell Grant Program (AL No. 84.063) Criteria: OMB Compliance Supplement, OMB No. 1845‐0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institutions’ Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information: “Campus Level” and “Program Level”, both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: During testing over the NSLDS reporting requirements, we noted four of twenty-five student certification dates were not within 60 days of the date of change reported on NSLDS. Context: The District disbursed financial aid to approximately 587 students that required student enrollment and program enrollment reporting to NSLDS. A representative selection of twenty-five students were haphazardly selected for testing of compliance requirements. Questioned Costs: None. Cause: Lack of review process to ensure that student certification dates are reported on NSLDS in a timely manner. Effect: The District is not in compliance with the Federal enrollment reporting requirements described in the OMB Compliance Supplement. Recommendation: The District should implement a process to review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. Views of Responsible Officials: The Downey Adult School (DAS) concurs with the audit finding and to prevent future occurrences, the school has purchased a new student database management software system (Campus Café) that articulates with the National Student Loan Data System (NSLDS) in reviewing, updating, verifying, and reporting student enrollment statuses, program information, and effective starting and ending dates that are required to appear on the Enrollment Reporting Roster file, this new process of enrollment and certification eliminated the potential for human errors by obtaining student information data derived directly from the Student Information System (SIS). In addition, DAS continues to work with its SIS, Campus Café, to electronically integrate with the National Clearing House, specifically with direct transmission of enrollment and certification reporting. The current processes of enrollment and certification reporting will be eliminated and replaced with processes of direct enrollment and certification reporting from the SIS to the National Clearing House, then to NSLDS. Implementation Date: August 18, 2025

Corrective Action Plan

The Downey Adult School (DAS) concurs with the audit finding and to prevent future occurences, the school has purchased a new student database management software system (Campus Café) that articulates with the National Student Loan Data System (NSLDS) in reviewing, updating, verifying, and reporting student enrollment statuses, program information, and effective starting and ending dates that are required to appear on the Enrollment Reporting Roster file, this new process of enrollment and certification eliminated the potential for human errors by obtaining student information data derived directly from the Student Information System (SIS). In addition, DAS continues to work with its SIS, Campus Cafe, to electronically integrate with the Nation Clearing House, specifically with direct transmission of enrollment and certification reporting. The current processes of enrollment and certification reporting will be eliminated and replaced with processes of direct enrollment and certification reporting from the SIS to the National Clearing House, then to NSLDS. The contact person responsible for the implementation of this action plan, to correct State Finding 2025-001, is Ms. Blanca Rochin, Downey Adult School Principal. Implementation Date: August 18, 2025

Categories

Student Financial Aid Procurement, Suspension & Debarment HUD Housing Programs Reporting

Programs in Audit

ALN Program Name Expenditures
84.010 TITLE I GRANTS TO LOCAL EDUCATIONAL AGENCIES $4.66M
10.553 SCHOOL BREAKFAST PROGRAM $2.90M
84.063 FEDERAL PELL GRANT PROGRAM $2.54M
10.555 NATIONAL SCHOOL LUNCH PROGRAM $1.24M
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $622,317
84.367 SUPPORTING EFFECTIVE INSTRUCTION STATE GRANTS (FORMERLY IMPROVING TEACHER QUALITY STATE GRANTS) $588,875
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $404,843
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $384,678
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $131,305
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $108,668
10.558 CHILD AND ADULT CARE FOOD PROGRAM $56,375
84.027 SPECIAL EDUCATION GRANTS TO STATES $12,517
84.173 SPECIAL EDUCATION PRESCHOOL GRANTS $959