Finding 1168711 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-11
Audit: 380724
Organization: Montreat College (NC)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: Three out of 40 student files (7.5%) had inaccurate or untimely enrollment status reporting to NSLDS, indicating noncompliance with federal requirements.
  • Impacted Requirements: This finding relates to 34 CFR 668.408, which mandates accurate reporting of student enrollment information to the Department of Education.
  • Recommended Follow-Up: The College should review and improve its policies and procedures to ensure timely and accurate reporting of student enrollment statuses.

Finding Text

2025-004 – Student Financial Aid Cluster – (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Criteria: 34 CFR 668.408 (a)(2) notes, “In accordance with procedures established by the Secretary, an institution offering any group of substantially similar programs… must report to the Department… (2) For each student – (i) Information needed to identify the student and the institution; (ii) The date the student initially enrolled in the program; (iii) The student’s attendance dates and attendance status (e.g., enrolled, withdrawn, or completed) in the program during the award year; (iv) The student’s enrollment status (e.g., full time, three-quarter time, half time, less than half time) as of the first day of the student’s enrollment in the program…” Condition: In our testing of student files, three out of 40 students (7.5%) had enrollment statuses not timely or accurately reported to NSLDS. We consider this finding to be an instance of noncompliance in relation to the Special Tests and Provisions compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2024-008. Cause: The causes for the untimely and incorrect enrollment status reporting was caused by a citizenship/foreign student flag issue that was not identified and resolved timely, an identified error in their reporting system that has since been resolved, and other unknown errors. Effect: The result is that the Department of Education was not made aware of the changes in student statuses in a timely manner and students’ enrollment dates were reported to NSLDS inaccurately or were missing. Questioned Costs: $0 Recommendation: We recommend that the College reviews their policies and procedures to ensure students’ enrollment statuses are reported accurately and timely. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2025-003 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended June 30, 2025 Condition Found In our testing of student files, three out of 40 students (7.5%) had enrollment statuses not timely or accurately reported to NSLDS. We consider this finding to be an instance of noncompliance in relation to the Special Tests and Provisions compliance requirement and is a repeat finding shown in Section IV of this report as prior year finding 2024-008. Corrective Action Plan To address these deficiencies and ensure timely and accurate reporting going forward, the Registrar’s Office has implemented a comprehensive set of actions: • System & Process Review: In early October 2025, a review was conducted of the October NSLDS reporting file due to a Jenzabar bug. That process identified both procedural and software issues impacting data accuracy. • Staff Training: On October 9, 2025, targeted training was provided to the Registrar’s team on the Jenzabar support ticket recommendations and process findings, strengthening staff understanding of reporting requirements and workflows. • Jenzabar Collaboration: The College is actively working with Jenzabar support through the June and September tickets to resolve data discrepancies and implement best practices for future reporting cycles. • Internal Reporting Development: Montreat will create internal reports to identify discrepancies between the “NSC Detail” table and student term tables, enabling proactive error correction before NSLDS submission. • Ongoing Monitoring: This will remain an ongoing process improvement initiative as the team continues to refine validation checks, strengthen internal controls, and leverage Jenzabar system updates to improve accuracy and timeliness. Responsible Person for Corrective Action Plan Kandi Molder Implementation Date of Corrective Action Plan 1/31/2026

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 1168708 2025-003
    Material Weakness Repeat
  • 1168709 2025-003
    Material Weakness Repeat
  • 1168710 2025-003
    Material Weakness Repeat
  • 1168712 2025-002
    Material Weakness Repeat
  • 1168713 2025-002
    Material Weakness Repeat
  • 1168714 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.20M
84.063 FEDERAL PELL GRANT PROGRAM $2.16M
12.902 INFORMATION SECURITY GRANTS $157,801
97.037 HELENE RECOVERY $92,982
84.033 FEDERAL WORK-STUDY PROGRAM $91,575
12.905 CYBERSECURITY CORE CURRICULUM $69,216
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $62,837
84.184 SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES_NATIONAL PROGRAMS $21,892
21.019 CORONAVIRUS RELIEF FUND $7,344