Finding 1173044 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-10

AI Summary

  • Core Issue: A student's enrollment status change was not reported to NSLDS within the required 60 days.
  • Impacted Requirements: Compliance with 34 CFR part 690 regarding timely enrollment reporting for federal fund recipients.
  • Recommended Follow-Up: Improve processes by involving multiple staff members to ensure timely reporting of enrollment changes.

Finding Text

CRITERIA: 34 CFR part 690 establishes rules governing the accuracy and timeliness of enrollment reporting to the National Student Loan Data System (“NSLDS”). Schools are required to confirm and report to the National Student Loan Data System (“NSLDS”) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower’s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: Through our Enrollment Reporting testing, we noted 1 out of 40 selections for which the students had a change in enrollment status but were not included in the enrollment reporting to NSLDS within 60 days of the change in enrollment. QUE STIONED COSTS: None. CAUSE/EFFECT: The student’s degree was awarded retroactively in Banner after the Spring degree verification file had been submitted to the National Student Clearinghouse. The College did not identify and report degrees posted after the standard reporting cycle concluded. Additionally, staff turnover in the Registrar’s office contributed to the oversight. The student’s “Graduated” status was not reported to NSLDS within the required 60-day timeframe, therefore the College was not in compliance with the Enrollment Reporting timeline requirements for this student. RECOMMENDATION: The auditor recommends the College enhance its process and incorporate multiple individuals in the process to ensure that student enrollment changes are captured and reported timely. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and has taken steps towards the reassessment of controls, review these accounts and implement controls to ensure that timely reporting to NSC is performed.

Corrective Action Plan

Management’s Response: Management understands the importance of ensuring information is reported accurately and timely and the requirement to report to the NSLDS the enrollment status of students who receive federal funds. The College will review its policies and procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. Views of Responsible Officials and Corrective Action: We will reassess controls, review these processes and implement controls, including multiple layers of review, to ensure that timely and accurate enrollment reporting is made. Furthermore, the reporting data was appropriately updated subsequent to the required timeframe. Name of Responsible Person: Jennifer O’Linger, Director of Student Financial Aid Implementation Date: Immediately

Categories

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

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $3.56M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $1.58M
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $969,943
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $167,850
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $160,277
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $111,109
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $73,800
84.033 FEDERAL WORK-STUDY PROGRAM $56,166
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $50,277
17.261 WORKFORCE DATA QUALITY INITIATIVE (WDQI) $40,010
12.600 COMMUNITY INVESTMENT $15,172