FAC Explorer

Finding 1169763 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-20
Audit: 382851
Organization: Hagerstown Community College (MD)
Auditor: CLIFTONLARSONALLEN LLP

AI Summary

  • Core Issue: Hagerstown Community College failed to report a student's enrollment status change to NSLDS within the required 60 days.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls over compliance with federal reporting requirements.
  • Recommended Follow-Up: The college should review and improve its procedures for timely and accurate reporting of enrollment status changes to NSLDS.

Finding Text

Federal Agency: U.S. Department of Education Federal Program: Student Financial Aid Cluster ALN: 84.063, 84.268 Federal Award Identification Number: P063P241225 - 2025 ; P268K251553 - 2025 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance – The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Condition: During our testing of enrollment status reporting, we noted the change in enrollment status was not reported within 60 days. Questioned Costs: None Context: The change in enrollment data was not reported timely for 1 out of 40 students. Cause: Hagerstown Community College did not have a process in place to ensure the students who changed status were reported timely and accurately. Effect: Student enrollment status changes was not reported timely to NSLDS. Repeat Finding: No Recommendation: We recommend Hagerstown Community College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Views of responsible officials: Management agrees with the finding and has a plan to correct the finding

Corrective Action Plan

U.S. Department of Education 2025-001: Special Tests and Provisions – NSLDS Enrollment Reporting Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.268 Condition: During our testing of enrollment status reporting, we noted the change in enrollment status was not reported within 60 days. Recommendation: We recommend Hagerstown Community College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Director of Financial Aid has contacted the National Student Clearinghouse (NSC) to assess whether any errors occurred during the file transmission process. As of the date of this submission, HCC has not received a response from NSC. Upon receipt of NSC’s findings, HCC will work collaboratively with NSC to identify the root cause of the error and implement corrective actions to prevent recurrence. HCC will continue to perform periodic spot checks of student records transmitted to NSC and subsequently reported to the National Student Loan Data System (NSLDS). Any discrepancies identified through these reviews will be addressed through coordinated corrective action by the Financial Aid, Registrar, and Institutional Effectiveness offices to ensure data accuracy and regulatory compliance. Name(s) of the contact person(s) responsible for corrective action: Dr. Charles M. Scheetz, Director of Financial Aid and W. Christopher Baer, Registrar Planned completion date for corrective action plan: June 30, 2026

Categories

Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1169760 2025-001
    Material Weakness Repeat
  • 1169761 2025-001
    Material Weakness Repeat
  • 1169762 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $6.92M
84.268 FEDERAL DIRECT STUDENT LOANS $4.13M
11.300 INVESTMENTS FOR PUBLIC WORKS AND ECONOMIC DEVELOPMENT FACILITIES $3.23M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $485,743
84.047 TRIO UPWARD BOUND $302,762
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $187,576
84.042 TRIO STUDENT SUPPORT SERVICES $147,059
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $141,758
84.033 FEDERAL WORK-STUDY PROGRAM $125,854
23.002 APPALACHIAN AREA DEVELOPMENT $119,438
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $116,775
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $112,988
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $31,841
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $9,802
93.498 PROVIDER RELIEF FUND AND AMERICAN RESCUE PLAN (ARP) RURAL DISTRIBUTION $-56