Finding 1165315 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2025-12-18
Audit: 375900
Organization: Rocky Mountain College (MT)
Auditor: KCOE ISOM LLP

AI Summary

  • Core Issue: Timely reporting of student enrollment status to NSLDS was not met, with 21% of records showing delays.
  • Impacted Requirements: Institutions must report enrollment changes within 30 days or include them in the next roster within 60 days, per federal regulations.
  • Recommended Follow-Up: Enhance monitoring procedures, consider automated alerts, and provide staff training to ensure compliance with reporting deadlines.

Finding Text

Finding No. 2025-001: Untimely Reporting of Student Enrollment Status to the National Student Loan Data System Assistance Title: Student Financial Assistance Cluster Assistance Listing Number: 84.007, 84.063, 84.0384, 84.268, 84.379 Federal Agency: U.S. Department of Education Type of Finding: Significant Deficiency and Noncompliance Category of Finding: Special Tests and Provisions: Enrollment Reporting Known Questioned Costs: $-0- Likely Questioned Costs: $-0- Criteria According to 34 CFR §685.309(b), institutions must report changes in student enrollment status to the National Student Loan Data System (NSLDS) within 30 days of the change or include the change in response to the next scheduled Enrollment Reporting roster file within 60 days. Condition During compliance testing of 14 student records, it was found that 3 students—representing approximately 21% of the sample—were not reported to NSLDS in a timely manner, exceeding the required reporting deadlines. Cause The untimely reporting resulted from a lapse in internal controls over the enrollment reporting process, possibly due to oversight or insufficient monitoring of reporting schedules. Effect Failure to report enrollment status changes promptly can lead to incorrect deferment or repayment statuses for student borrowers, potentially affecting their financial obligations and the federal government's ability to manage the student loan portfolio effectively. Repeat Finding This is a repeat finding to No. 2024-002. Recommendation We recommend that the College review and enhance its procedures for monitoring and reporting enrollment status changes. This could involve implementing automated alerts, providing additional staff training, or establishing more robust internal checks to ensure adherence to reporting deadlines. Management’s Response Management concurs with this finding. See Management’s Response and Corrective Action plan.

Corrective Action Plan

Finding 2025-001: In order to ensure proper compliance with reporting student enrollment statuses to the National Student Loan Data System, the CFO, Controller, and Director of Student Records will familiarize themselves with federal reporting deadlines and create an improved internal system to monitor and report student enrollment changes on a timely basis. The CFO, Controller, and Director of Student Records will explore enhanced monitoring controls such as designating a second reviewer to verify that all files were transmitted and accepted by NSC within required timeframes and implementing an internal tracking log to record the submission and confirmation dates for each roster file.

Categories

Reporting Internal Control / Segregation of Duties Special Tests & Provisions Student Financial Aid Subrecipient Monitoring Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1165311 2025-001
    Material Weakness Repeat
  • 1165312 2025-001
    Material Weakness Repeat
  • 1165313 2025-001
    Material Weakness Repeat
  • 1165314 2025-001
    Material Weakness Repeat
  • 1165316 2025-002
    Material Weakness Repeat
  • 1165317 2025-002
    Material Weakness Repeat
  • 1165318 2025-002
    Material Weakness Repeat
  • 1165319 2025-002
    Material Weakness Repeat
  • 1165320 2025-002
    Material Weakness Repeat
  • 1165321 2025-003
    Material Weakness Repeat
  • 1165322 2025-003
    Material Weakness Repeat
  • 1165323 2025-003
    Material Weakness Repeat
  • 1165324 2025-003
    Material Weakness Repeat
  • 1165325 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.70M
84.063 FEDERAL PELL GRANT PROGRAM $1.87M
84.042 TRIO STUDENT SUPPORT SERVICES $367,429
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $136,712
84.033 FEDERAL WORK-STUDY PROGRAM $129,096
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $112,546
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $95,670
15.805 ASSISTANCE TO STATE WATER RESOURCES RESEARCH INSTITUTES $12,466
93.136 INJURY PREVENTION AND CONTROL RESEARCH AND STATE AND COMMUNITY BASED PROGRAMS $10,019
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $813