Finding 1171719 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-01-30

AI Summary

  • Core Issue: The College has a significant deficiency in internal controls over compliance with NSLDS enrollment reporting, leading to inaccurate status reporting for students.
  • Impacted Requirements: Timely and accurate reporting of student enrollment information under Pell Grant and Direct Loan programs is not being met.
  • Recommended Follow-Up: Implement enhanced processes to ensure accurate and timely verification of student enrollment statuses before reporting to NSLDS.

Finding Text

Special Tests and Provisions – Enrollment (NSLDS) Reporting Significant Deficiency in Internal Control over Compliance Criteria: Institutions are required to timely report accurate enrollment information under the Pell Grant and Direct Loan programs via the NSLDS. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates. Condition: During our testing of the information submitted to NSLDS, we noted 2 students out of the 40 tested that had errors of status reporting for summer term. Cause: In the College’s software transition to PowerFaids, the system automatically coded all students to full time status and students that are less than full time had to be adjusted manually. Some students were missed in this manual process. Effect: The College is not in compliance with the federal NSLDS reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 736 students in the 2024-2025 school year. A non-statistical sample of 40 students was selected for testing. Repeat Finding: No Auditor’s recommendation: The College should implement additional processes to review, update, and verify that student enrollment statuses are reported to NSLDS accurately and timely. Management’s response: Once the issue was identified, students were adjusted manually. An automated process has been created to compare student status with the Student Information System (SIS) before the file is sent to NSLDS.

Corrective Action Plan

Condition and Criteria: Institutions are required to timely report enrollment information under the Pell Grant and Direct Loan programs via the NSLDS. Institutions must review, update, and certify student enrollment statuses, program information, and effective dates. During our testing of the information submitted to NSLDS, we noted 2 students out of the 40 tested that had errors of status reporting for summer term. Effect: The College is not in compliance with the federal NSLDS reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. Cause: In the College’s software transition to PowerFaids, the system automatically coded all students to full-time status and students that are less than full time had to be adjusted manually. Some students were missed in this manual process. Questioned Costs: None reported Context/Sampling: The College disbursed Federal financial aid to approximately 736 students in the 2024-2025 school year. A non-statistical sample of 40 students was selected for testing. Repeat Finding: No Auditor’s recommendation: The College should implement additional processes to review, update, and verify that student enrollment statuses are reported to NSLDS accurately and timely. Corrective Action to be Taken: Once the issue was identified, students’ statuses were adjusted manually. An automated process has been created to compare student status with the Student Information System (SIS) before the file is sent to NSLDS. Anticipated Completion Date: The status corrections and the new review process was implemented in Fall of 2024. Name and Title of Responsible Person: Angela Rios, Director of Student Financial Aid

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1171716 2025-001
    Material Weakness Repeat
  • 1171717 2025-001
    Material Weakness Repeat
  • 1171718 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $2.96M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $685,529
84.268 FEDERAL DIRECT STUDENT LOANS $684,493
84.042 TRIO STUDENT SUPPORT SERVICES $329,893
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $152,259
84.421 DISABILITY INNOVATION FUND (DIF) $99,097
84.425 EDUCATION STABILIZATION FUND $54,088
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $52,506
84.033 FEDERAL WORK-STUDY PROGRAM $46,647
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $20,000
10.226 SECONDARY EDUCATION, TWO-YEAR POSTSECONDARY EDUCATION, AND AGRICULTURE IN THE K-12 CLASSROOM $9,390
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $3,496
45.310 GRANTS TO STATES $1,975
93.879 MEDICAL LIBRARY ASSISTANCE $1,500