Finding 1169410 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382340
Organization: Life University, Inc. (GA)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to report changes in student enrollment status accurately and on time, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 685.309, which mandates reporting changes within 30 days.
  • Recommended Follow-Up: Implement procedures for timely reporting of student status changes and ensure regular updates to the NSLDS.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: N. Special Tests and Provisions – Enrollment Reporting: Federal regulation 34 CFR 685.309 states that the institution shall accurately report a change in a student’s enrollment status directly to the lender or guarantee agency within 30 days if a student has graduated, withdrawn, or ceased to be enrolled (or failed to enroll) at least half-time and the school does not expect its next Roster File to NSLDS within 60 days. Condition: The University did not report students’ status changes accurately and within the required timeframe. Cause: Administrative oversight. Effect or Possible Effect: The University was not in compliance with required federal guidelines. Questioned Costs: None. Context: Program Level: Based on a sample of 40 students, 1 student’s program begin date was not accurately reported to the NSLDS. 1 student’s program enrollment effective date was not accurately reported to the NSLDS. Campus Level: Based on a sample of 40 students, 4 student’s campus level enrollment effective date was not reported to the NSLDS within the required timeframe. Identification of Repeat Finding: Yes, see finding 2024-002. Recommendation: The University should implement procedures to ensure that student status changes are reported in a timely manner. Views of Responsible Officials: The University will report to the National Student Clearing (NSC) House using regularly scheduled enrollment reports every 30 days. Suppose a student’s enrollment status is not captured in the regularly scheduled enrollment reports with the NSC. In that case, the enrollment reporting will be reported directly to the National Student Loan Database Service (NSLDS), such as after the end of the term once grades are processed. The enrollment reporting in which a student receives a failing grade of all “Fs” for a quarter will be adjusted to meet the reporting time frame.

Corrective Action Plan

Individuals Responsible for Corrective Action Plan: •Dr. Lee Skinkle, VPAA •Elizbeth Geisz, Registrar •Melissa Waters, Senior Director Student Administration and Compliance Condition: The University did not report students’ status changes accurately and within the required timeframe. Management’s Corrective Action Plan: 1.Improved Identification of Withdrawals Per the University’s attendance policy, the Academics team promptly reviews students who haveceased academic activity for 14 consecutive days. Students meeting this criterion are identified androuted to the Registrar’s Office for processing as unofficial withdrawals within the required federaltimeframe. This procedure ensures timely and accurate reporting of enrollment status changes andeliminates the need to backdate information in the SIS, NSC, and NSLDS. 2.Refined Enrollment and Registration Deadlines Enrollment and registration deadlines have been tightened and communicated across alldepartments. Reducing late registration activity minimizes backdated actions that can result ininaccurate program-level and campus-level effective dates in NSC and NSLDS reporting. 3.Review and Adjustment of the Dismissal Timeline The dismissal process timeline is being reviewed and updated to ensure students have sufficienttime to meet enrollment and registration deadlines for subsequent academic periods. This reduceslate or retroactive enrollment-status changes that affect NSLDS timeliness. 4.Enhanced Quality Assurance for Enrollment Reporting Monthly quality checks will be performed on reports related to withdrawals, graduations, programchanges, and registration activity prior to submission to the NSC. These checks will specificallyverify: •Accuracy of program begin dates and program enrollment effective dates, •Accuracy and timeliness of campus-level enrollment status changes, and •Compliance with the 30-day/60-day federal reporting requirement. 5.Monitoring of NSC Transmission and NSLDS Reporting Timelines The University will monitor NSC transmission cycles and verify that all required enrollment changesare submitted in time to meet federal requirements under 34 CFR 685.309. 6.Updated Procedures and Staff Training Revised procedures outlining updated deadlines, reporting expectations, and QC steps will bedocumented and shared with all Enrollment, Registrar, and Deans. Targeted training will beprovided to ensure consistent and accurate implementation of these requirements. Anticipated Completion Date: The University intends to institute these beginning of January of 2026.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1169409 2025-001
    Material Weakness Repeat
  • 1169411 2025-002
    Material Weakness Repeat
  • 1169412 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $103.46M
84.063 FEDERAL PELL GRANT PROGRAM $2.71M
84.033 FEDERAL WORK-STUDY PROGRAM $535,592
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,755
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $0