Finding 1168222 (2024-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2026-01-07
Audit: 380015
Organization: Heritage University (WA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over compliance related to timely reporting of student enrollment changes to NSLDS.
  • Impacted Requirements: Institutions must report attendance changes within 60 days as per federal guidelines, which was not met for 3 out of 19 students tested.
  • Recommended Follow-Up: Enhance policies for timely reporting and establish a formal monitoring process to regularly check NSLDS submissions for accuracy.

Finding Text

Special Tests and Provisions - Enrollment Reporting – Significant Deficiency in Internal Controls over Compliance Student Financial Assistance Cluster Department of Education Federal Assistance Listing Number: 84.063, 84.268 Federal Program Name: Federal Pell Grant Program, Federal Direct Student Loans Federal Award Number: P063P2324403, P268K242403 Award Year: 2023-24, 2022-23, 2021-22 Criteria – The National Student Loan Data System (NSLDS) is the Department of Education’s (ED) centralized database for students’ enrollment information under the Pell Grant and the Direct Loan and Federal Family Education Loan programs. Uniform guidance requires institutions to have internal controls in place to ensure attendance changes for students are reported to NSLDS within at least 60 days of when the student attendance change occurs. It is the University’s responsibility to update students' enrollment information timely and accurately as outlined in 34 CFR § 685.309. Institutions are responsible for accurately reporting certain significant data elements under the Campus- Level Record and Program-Level Record that ED considers high risk, which includes the student's program as per the Classification of Instructional Programs (CIP) code, and the student's status change Effective Date. Condition/context – We selected a sample of 19 students out of a population of 208 who had received Federal aid and were reported to NSLDS during the fiscal year. We compared the significant data elements under the Campus-Level and Program-Level Records that ED considers high risk as reported to NSLDS to the data included in the student's academic records, other institutional records, and the withdrawal or graduation date per the University’s records. We noted exceptions with 3 out of the 19 students tested. Two students were not reported to NSLDS within the 60 day requirement and one student who withdrew but was not reported as such to NSLDS. In addition, one of the students who was not reported timely to NSLDS had graduated but was not reported to NSLDS as such. Our sample was not, and was not intended to be, statistically valid. Questioned costs – None. Cause/effect – This occurred because of lack of controls and oversight of the process. This resulted in incomplete and inaccurate reporting of the information to NSLDS. The enrollment information reported to NSLDS is utilized by ED, the Direct Loan program, lenders, and other institutions to determine in-school status. Repeat finding – Yes, 2023-007 Recommendation – We recommend the University follow and enhance existing policies to ensure all student changes in status are identified timely and submitted accurately within the required time frame. We also recommend the University establish a formal internal monitoring control whereby a designated individual with NSLDS access, on a sample basis, spot checks the status updates on NSLDS so to internally audit the National Student Clearinghouse submissions. Views of responsible officials and planned corrective actions – As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. When the registrar office sends their enrollment reporting through the clearing house, financial aid will have a person with access to NSLDS to spot check to ensure enrollment is submitted correctly and in a timely manner. A system will be developed where spot checks will be done monthly on a few random students.

Corrective Action Plan

As a response to concerns about disruptions in processes and the turnover of key staff in several departments, the Enrollment Alliance group that includes director-level staff in Admissions, the Registrar, Financial Aid, Advising, Bursar, and IT began meeting under the facilitation of the VP of Student Affairs on January 7, 2025. When the registrar office sends their enrollment reporting through the clearing house, financial aid will have a person with access to NSLDS to spot check to ensure enrollment is submitted correctly and in a timely manner. A system will be developed where spot checks will be done monthly on a few random students. Name of Responsible Party: 1. Nancy Benavides,Financial Aid Director 2. J.T. Menard, Registrar 3. Ivan Banks, Interim Provost 4. Corey Hodge, VP for Student Affairs 5. Joanne Fernandez, Controller 6. Marla Withers, Assistant Controller 7. Sagrario Armenta Jimenez, CFO 8. Dr. Christopher Gilmer, President Anticipated completion date: 6/30/2026

Categories

Student Financial Aid Reporting Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1168215 2024-003
    Material Weakness Repeat
  • 1168216 2024-005
    Material Weakness Repeat
  • 1168217 2024-007
    Material Weakness Repeat
  • 1168218 2024-005
    Material Weakness Repeat
  • 1168219 2024-005
    Material Weakness Repeat
  • 1168220 2024-002
    Material Weakness Repeat
  • 1168221 2024-002
    Material Weakness Repeat
  • 1168223 2024-004
    Material Weakness Repeat
  • 1168224 2024-004
    Material Weakness Repeat
  • 1168225 2024-005
    Material Weakness Repeat
  • 1168226 2024-006
    Material Weakness Repeat
  • 1168227 2024-007
    Material Weakness Repeat
  • 1168228 2024-008
    Material Weakness Repeat
  • 1168229 2024-008
    Material Weakness Repeat
  • 1168230 2024-009
    Material Weakness Repeat
  • 1168231 2024-009
    Material Weakness Repeat
  • 1168232 2024-009
    Material Weakness Repeat
  • 1168233 2024-009
    Material Weakness Repeat
  • 1168234 2024-009
    Material Weakness Repeat
  • 1168235 2024-009
    Material Weakness Repeat
  • 1168236 2024-009
    Material Weakness Repeat
  • 1168237 2024-009
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $2.78M
84.268 FEDERAL DIRECT STUDENT LOANS $2.73M
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $1.03M
84.425 EDUCATION STABILIZATION FUND $557,563
84.141 MIGRANT EDUCATION HIGH SCHOOL EQUIVALENCY PROGRAM $524,057
84.031 HIGHER EDUCATION INSTITUTIONAL AID $475,567
84.149 MIGRANT EDUCATION COLLEGE ASSISTANCE MIGRANT PROGRAM $336,066
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $296,420
84.042 TRIO STUDENT SUPPORT SERVICES $275,291
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $118,077
84.033 FEDERAL WORK-STUDY PROGRAM $67,988
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $52,110
10.558 CHILD AND ADULT CARE FOOD PROGRAM $39,983
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $35,127
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $26,409
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $17,084
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $15,739
43.001 SCIENCE $12,850
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $11,788
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $6,067
47.074 BIOLOGICAL SCIENCES $1,204
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $0