Finding 1169510 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-16
Audit: 382466
Organization: Claremont Graduate University (CA)

AI Summary

  • Core Issue: There is a significant deficiency in internal controls regarding timely enrollment reporting, leading to inaccuracies in the National Student Loan Data System (NSLDS).
  • Impacted Requirements: The University failed to notify the Secretary within the required 30 days about changes in student enrollment status or address, as mandated by 34 CFR section 685.309(b)(2).
  • Recommended Follow-Up: Implement a formal policy for reviewing NSLDS submissions for accuracy and establish regular monitoring of reporting deadlines, especially for graduating students.

Finding Text

FINDING 2025-001 – Special Tests and Provisions – Enrollment Reporting: Significant Deficiency in Internal Control over Compliance (SEE FINDING 2025-001 FOR INCLUDED TABLE) Criteria – 34 CFR section 685.309(b)(2): Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) A student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address. Condition/context – A sample of 20 federal aid recipient students were selected from system generated reports of students who graduated, reported a physical address change, withdrew, or dropped during the 2024-2025 academic year. The enrollment information and withdrawal, address change, or graduation date per the University’s records was compared to the information reported to the National Student Loan Data System (NSLDS) in order to determine if status changes were reported within the required timeframes. Of the 20 students who had a change in address, graduated, or withdrew, there were four student files with errors. There was one student file that had incorrect enrollment status reported and not reported within the required timeframe. A second student file was reported under the incorrect enrollment status but within the appropriate time requirement. Lastly, two additional student files were not reported within the required timeframe. Cause – The review procedures in place do not sufficiently address situations involving the Degree Verify transmission failures. Effect – The NSLDS database did not include accurate information until the point at which it was corrected. This information is utilized by ED, the Direct Loan program, lenders, and other institutions to determine in-school status, deferment, and grace periods of student loans. Incorrect information could result in incorrect deferment, grace periods, billing, and repayment of student loans. Repeat finding – This is not a repeat finding. Recommendation – We recommend the University establish a formal policy requiring a review of student status information submitted to the NSLDS, by a third-party intermediary on the University’s behalf, for completeness and accuracy. We also recommend the University establish a cadence of monitoring reporting deadlines, particularly those around classes of graduating students. Views of responsible officials and planned corrective actions – Management agrees and has created a corrective action plan.

Corrective Action Plan

Claremont Graduate University Corrective Action Plan For the Fiscal Year Ended June 30, 2025 U.S. Department of Education FINDING 2025-001 – Special Tests and Provisions-Enrollment Reporting: Significant Deficiency in Internal Control over Compliance Condition – During the audit fieldwork, a sample of 20 federal aid recipient students were selected by auditors from system generated reports of students who graduated, reported a physical address change, withdrew, or dropped during the 2024-2025 academic year. The enrollment information and withdrawal, address change, or graduation date per the University’s records was compared to the information reported to the National Student Loan Data System (NSLDS) in order to determine if status changes were reported within the required timeframes. Of the 20 students who had a change in address, graduated, or withdrew, there were four student files with errors. There was one student file that had incorrect enrollment status reported and not reported within the required timeframe. A second student file was reported under the incorrect enrollment status but within the appropriate time requirement. Lastly, two additional student files were not reported within the required timeframe. Explanation of Deficiency On June 20, 2025, the Degree Verify transmission to the National Student Clearinghouse (NSC) failed. Additionally, an error was identified that caused all international student records to be rejected. In order to correct the omission of international students, the monthly transmission was temporarily stopped until the issue could be resolved. This process took longer than anticipated. While degree records were being manually updated in NSC, staff were not aware that the enrollment records also needed to be separately updated. The Degree Verify file had been configured with a flag that should have automatically updated enrollment records upon submission, but this was not recognized at the time. As a result, a sample of student files reviewed contained reporting errors related to incorrect enrollment statuses or reporting delays. These issues would have been avoided if regularly scheduled reports had been submitted to NSC without interruption. Corrective Action Plan To address these deficiencies and prevent recurrence, the following corrective measures have been implemented: 1. Resumption of Scheduled Transmissions – The Office of Information Technology has corrected the Degree Verify file rejection issue. Monthly transmissions of Degree Verify reports will resume beginning September 20, 2025. 2. Enhanced Enrollment Reporting Schedule – Enrollment reporting has been rescheduled to occur every three weeks throughout each term, ensuring that enrollment status changes are reported to NSC and NSLDS within required timeframes. 3. Manual Record Reconciliation – A comprehensive review of late degree conferrals has been completed. All enrollment records have been manually updated in NSC to align with the corresponding degree records. 4. Staff Training and Awareness – The Registrar’s Office staff have been trained on the functional differences between degree reporting and enrollment reporting. Emphasis was placed on the need to verify that enrollment records are updated when degree records are manually corrected. 5. Monitoring and Quality Control – A reconciliation process has been established between the Registrar’s Office and OIT to confirm the successful transmission and acceptance of NSC files. Reports of any rejected records will be reviewed within five business days and promptly corrected. Contact Person Responsible: Vannessa Alvarado, Registrar 909-621-8285 Anticipated/Projected Completion Date: Manual corrections completed on September 3, 2025. Automated processes to projected September 20, 2025.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1169508 2025-001
    Material Weakness Repeat
  • 1169509 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $29.23M
84.033 FEDERAL WORK-STUDY PROGRAM $618,977
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $494,655
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $349,550
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $335,571
84.038 FEDERAL PERKINS LOAN PROGRAM (BEGINNING OF THE YEAR) $186,771
84.299 INDIAN EDUCATION -- SPECIAL PROGRAMS FOR INDIAN CHILDREN $161,650
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $116,181
47.074 AMERICAN SOCIETY FOR BIOCHEMISTRY AND MOLECULAR BIOLOGY $68,990
84.305 EDUCATION RESEARCH GRANTS PROGRAM $51,826
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $50,215
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $49,565
93.866 AGING RESEARCH $48,720
12.U01 HELP SEEKING BEHAVIOR TRAINING TO EARLY-CAREER U.S. MARINES $48,133
45.024 PROMOTION OF THE ARTS GRANTS TO ORGANIZATIONS AND INDIVIDUALS $35,000
93.967 CDC'S COLLABORATION WITH ACADEMIA TO STRENGTHEN PUBLIC HEALTH WORKFORCE CAPACITY $23,384