Finding 1173272 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-11

AI Summary

  • Core Issue: SWAU submitted required enrollment data for PELL and Direct Loan programs late, affecting compliance with federal reporting standards.
  • Impacted Requirements: Nine reports were due for 2024-25, with five filed late (80-155 days overdue), violating 34 CFR sections 690.83(b)(2) and 685.309.
  • Recommended Follow-Up: Clearly communicate deadlines and responsibilities; provide necessary training to ensure timely reporting and prevent future issues.

Finding Text

Information on the Federal Program: Student Financial Assistance Cluster; PELL (ALN 84.063) and Direct Loans (ALN 84.268); United States Department of Education; Award Year 2024-25; Compliance requirement – Special Tests and Provisions; Type of Finding: Noncompliance. Criteria: The PELL and Direct Loan programs (Pell, 34 CFR section 690.83(b)(2) and Direct Loan, 34 CFR section 685.309) require institutions to submit enrollment data and enrollment changes to the National Student Loan Data System (NSLDS). Condition: SWAU submitted some of the required reporting to NSLDS late for the 2024-25 year. This is a continuation of finding 2024-001. Context: Nine reports were due for 2024-25, based on the NSLDS information reviewed during the audit. Five of these reports were filed late, with the delinquencies ranging from 80 to 155 days past the due date. Cause: A change in personnel and lack of timely hiring, understaffing and proper training in the Registrar’s office and a new university student information system led to the reports not being generated and filed timely. Effect or Potential Effect: Student enrollment status is not correctly reflected in the NSLDS system, potentially allowing students to not begin loan repayment in the correct timeframe. Recommendation: Deadlines and responsibilities for duties and tasks should be clearly communicated, and training regarding reporting requirements and information system considerations should be provided if needed, to avoid recurrence. Responsible Official’s Response and Corrective Action Planned: See corrective action plan.

Corrective Action Plan

The 2023-24 Single Audit identified 12 delinquent NSLDS reports for the 2023-24 academic year, with delays ranging from 180 to 459 days. The 2024-25 Single Audit showed improvement, with only 5 of 9 reports filed late for the 2024-25 academic year, and delays reduced to 80-155 days. Corrective Action: To prevent future occurrences of missed NSLDS reporting, the following steps have been implemented: • Cleanup of Past Delinquencies o All outstanding 2024-25 reports have been reviewed and submitted by October 3, 2025. o A reconciliation audit will be conducted to ensure all NSLDS records match institutional data. • Process Improvement o Implemented a centralized calendar with automated reminders for NSLDS reporting deadlines. o Established monthly reconciliation between internal Student Information System and NSLDS data. • Staffing and Training o The registrar is the primary reporting coordinator to the National Student Clearinghouse, with support from both Student Financial Services and ITS. o A standard operating procedure (SOP) has been documented to guide future reporting efforts. • Management Oversight o The Vice President for Academic Administration and ITS must also ensure that all these processes and departments are working to ensure the student data is being reported correctly and on-time. We are confident that these measures will address the issue of failure to report to the NSC and ensure full compliance with NSLDS reporting requirements in the future. Contact Persons: Duane Valencia, Assistant Financial Vice President – Student Finance; Jason Kowarsch, Registrar Completion Date: October 3, 2025

Categories

Student Financial Aid Special Tests & Provisions Reporting

Other Findings in this Audit

  • 1173271 2025-001
    Material Weakness Repeat
  • 1173273 2025-002
    Material Weakness Repeat
  • 1173274 2025-002
    Material Weakness Repeat
  • 1173275 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $3.76M
84.063 FEDERAL PELL GRANT PROGRAM $2.22M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $1.23M
84.428 AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE—TEACHER PREPARATION AND DEVELOPMENT $282,591
84.033 FEDERAL WORK-STUDY PROGRAM $138,096
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $79,779
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772