Finding 1167726 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-05
Audit: 378966
Organization: Merrimack College (MA)
Auditor: CBIZ CPAS PC

AI Summary

  • Core Issue: Eleven out of twelve students were reported to NSLDS late, missing the required 60-day window for enrollment changes.
  • Impacted Requirements: Timely reporting of enrollment status is crucial for determining eligibility for benefits like grace periods and repayment schedules.
  • Recommended Follow-Up: The College should enhance oversight of the reporting process to ensure timely communication between itself, the National Student Clearinghouse, and NSLDS.

Finding Text

Finding - Special Tests and Provisions: Enrollment Reporting - Federal Direct Student Loan Program, Assistance Listing Number 84.268; June 30, 2025 Award Year; U.S. Department of Education Criteria or Specific Requirement Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves of absence. It is the institution’s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (“NSLDS”). (NSLDS Enrollment Reporting Guide November 2022, and 34 CFR 685.309(b)) Condition Found Of the twelve students selected for enrollment reporting testing, eleven students were reported to NSLDS outside of the 60-day window. Questioned Costs None noted. Cause For the eleven students, the correct date of separation was reported by the College timely, within the 60-day window, to the National Student Clearinghouse (“NSC”). The end of the 60-day window lapsed between the date NSC received the information and the date NSC communicated the information to NSLDS. Effect A student’s enrollment status determines eligibility for in-school status, deferment, grace periods, and repayments, as well as the government’s payment of interest subsidies. The notification of student status changes to NSLDS will cause a student to enter into a grace period and determine a repayment date and, therefore, accurate and timely notification of student status to NSLDS is important. Identification as a Repeat Finding Not a repeat finding. Recommendation The College should remain vigilant in its oversight over timely communication of enrollment reporting detail to NSC and from NSC to NSLDS as it is the College’s responsibility to ensure this information is received timely by NSLDS, regardless of whether an intermediate party is used. Views of Responsible Officials and Corrective Actions See Corrective Action Plan.

Corrective Action Plan

Finding – Special Tests and Provisions: Enrollment Reporting – Federal Direct Student Loan Program, Assistance Listing Number 84.268; June 30, 2025 Award Year; U.S. Department of Education Criteria or Specific Requirement Enrollment information, including the effective date of separation from the institution, must be accurately reported within 30 days whenever attendance changes for a student, unless a roster will be submitted within 60 days. The changes include reductions or increases in attendance levels, withdrawals, graduations, and approved leaves of absence. It is the institution’s responsibility, as a participant in the Title IV aid programs, to monitor and report these changes to the National Student Loan Data System (“NSLDS”). (NSLDS Enrollment Reporting Guide November 2022, and 34 CFR 685.309(b)) Condition Of the twelve students selected for enrollment reporting testing, eleven students within the sample were reported to NSLDS outside the maximum 60-day window. This was not a statistically valid sample. Views of Responsible Officials and Planned Corrective Actions The College concurs with the finding. The College will continue to remain vigilant in its oversight over timely communication of enrollment reporting detail to NSLDS. In both instances, the data we had sent to the National Student Clearinghouse (NSC) was not received by NSLDS in a timely fashion. We will review our reporting schedule and make the appropriate changes to our reporting timeline to ensure the data we report to the NSC is subsequently received by NSLDS within regulations. Names of Contact Person Responsible for Corrective Action: Annette MacMullin, Director of Financial Aid Anticipated Completion Date: September 18, 2025

Categories

Student Financial Aid Special Tests & Provisions Eligibility Reporting

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $46.98M
84.063 FEDERAL PELL GRANT PROGRAM $5.13M
97.036 COVID-19 - DISASTER GRANTS - PUBLIC ASSISTANCE $4.73M
84.033 FEDERAL WORK-STUDY PROGRAM $648,257
93.865 CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH $634,044
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $555,110
47.076 EDUCATION AND HUMAN RESOURCES $264,859
84.038 FEDERAL PERKINS LOAN PROGRAM $174,733
93.233 SLEEP DISORDERS RESEARCH $151,580
47.041 ENGINEERING GRANTS $105,385
93.242 MENTAL HEALTH RESEARCH GRANTS $94,323
93.847 DIABETES, DIGESTIVE, AND KIDNEY DISEASES EXTRAMURAL RESEARCH $36,759
15.807 UNITED STATES GEOLOGICAL SURVEY $17,106
93.866 AGING RESEARCH $0