Finding 1172848 (2025-001)

Compliance Requirement: Enrollment Reporting Campus: Sacramento, Los Angeles Cluster name/program: Student Financial Assistance Cluster Federal Assistance Listing Numbers: 84.063 Federal Pell Grant Program and 84.268 Federal Direct Loans Federal Award Identification Number: None Federal Agency: U.S. Department of Education Passed through Entity: None Award Year: July 1, 2024 - June 30, 2025 Criteria: The U.S. Code of Federal Regulations 34 CFR 690.83(b)(2), 34 CFR 682.610, 34 CFR 685.309, and 34 CFR 674.19 require institutions review, update, and certify student enrollment reporting roster in a timely and accurate basis at both the campus and program level. Enrollment roster should be certified every 60 days or every other month. In addition, CFR 200.303 requires nonfederal entities to, among other things, 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. Condition and Context: The Sacramento and Los Angeles campuses did not accurately report student status changes and enrollment status changes at both the campus-level and program-level to the National Student Loan Data System (NSLDS) and the control to ensure the student status changes and enrollment status changes was not operating effectively. The Sacramento and Los Angeles campus also did not report student status changes timely to NSLDS. During our testing of 60 student borrowers under the Federal Direct Loan Program and/or Federal Pell Grant recipients that had a reduction or increase in attendance levels, graduated, withdrew, dropped out, or enrolled but never attended during the fiscal year, we noted the following at the Sacramento and Los Angeles Campuses: • At the Sacramento campus, the status changes for two graduates were reported late to NSLDS by up to 62 days, which is greater than the allowed 60 days after the change was known by the campus. We noted that although corrective actions were taken in response to the prior year’s finding, the events causing the findings noted above occurred prior to the implementation of the corrective action in the latter part of the fiscal year. • At the Los Angeles campus, the status change for one student was reported incorrectly to NSLDS as full-time status rather than Graduated (G) status. The campus-level enrollment status and the program-level enrollment status reported to NSLDS did not agree to campus records for this student. Further, the status change for this student was reported late to NSLDS by up to 87 days, which is greater than the allowed 60 days after the change was known by the campus. Cause and Effect: The Sacramento campus experienced personnel changes in the registrar's office and did not have adequate staffing in place to monitor the required procedures for a portion of the year. The events causing findings this year occurred prior to the implementation of the corrective action in the latter part of the fiscal year. The Los Angeles campus did not have a process in place to report graduations that occur later than the submission of the final semester file to NSLDS. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Questioned Costs: None Repeat Finding: Yes – Sacramento, No – Los Angeles Recommendation: We recommend the University provide proper training on the enrollment reporting procedures and apply its existing policies and procedures. Views of Responsible Officials: The University concurs with the recommendation. The University will review and enhance its procedures to ensure timely and accurate reporting to NSLDS.