Finding 1173485 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-13
Audit: 387244
Organization: Tusculum University (TN)

AI Summary

  • Core Issue: The University has repeatedly failed to report accurate student enrollment statuses to the NSLDS, leading to a significant deficiency in compliance.
  • Impacted Requirements: This affects compliance with 34 CFR 685.309(b) and 34 CFR 690.83(b)(2), which mandate timely updates to enrollment data.
  • Recommended Follow-Up: The University should enhance communication between departments and ensure the Registrar’s Office takes primary responsibility for accurate reporting to NSLDS.

Finding Text

2025-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat finding of 2022-001, 2023-003, and 2024-005) Criteria: In accordance with 34 CFR 685.309(b) and 34 CFR section 690.83(b)(2), for Direct Loans and Pell grants, respectively, once the Enrollment Reporting roster file is received from the NSLDS, the institution must update the Enrollment Reporting roster file for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes to NSLDS. Statement of Condition: During the audit, it was noted that the University incorrectly reported student enrollment status for changes in enrollment. Questioned Costs: Such information is not applicable for this finding since it is nonmonetary in nature. Perspective Information: The audit included a detailed testing of 40 student files, of which this significant deficiency applies to 8 indicating an error rate of 20.00%. Cause and Effect: Due to lapses in communication between departments, in certain instances, the University failed to provide NSLDS with accurate updates to student enrollment statuses, resulting in misrepresentation within the NSLDS system. Recommendation: The University should ensure that the correct enrollment status is reported to NSLDS. View of Responsible Officials: Tusculum University acknowledges this finding. The university has identified the issue that is occurring that is causing the enrollment to be reported incorrectly. We are currently working with the IT Department to fix the error that is occurring within the system itself. In the meantime, students who are impacted by the incorrect enrollment status reporting are being manually fixed in the system and then the record is being pulled and reported to clearinghouse. Overall, the university has been working to reduce the number of incorrect enrollment status reportings. This can be seen by the fact that we went from a 45% error rate in 2023-24 to a 20% error rate in 2024-25. Finally, the Registrar’s Office shall be main office reporting clearinghouse data in the future, with financial aid only acting as a secondary reporter should the Registrar’s Office not be available to report.

Corrective Action Plan

2025-001 Significant Deficiency: National Student Loan Data System (NSLDS) Report (U.S. Department of Education, William D. Ford Direct Loan Program, ALN #84.268 and Federal Pell Grant Program, ALN #84.063) (Repeat finding of 2022-001, 2023-003, and 2024-005) Name of Contact Person Casey Reagan, Registrar, and Melissa White, Director of Financial Aid, are responsible for clearinghouse reporting for 2023-24. Corrective Action Planned During the audit, it was noted that the University incorrectly reported student enrollment status for changes in enrollment. The university has identified the issue that is occurring that is causing the enrollment to be reported incorrectly. We are currently working with the IT Department to fix the error that is occurring within the system itself. In the meantime, students who are impacted by the incorrect enrollment status reporting are being manually fixed in the system and then the record is being pulled and reported to clearinghouse. Overall, the university has been working to reduce the number of incorrect enrollment status reportings. This can be seen by the fact that we went from a 45% error rate in 2023-24 to a 20% error rate in 2024-25. Finally, the Registrar’s Office shall be main office reporting clearinghouse data in the future, with financial aid only acting as a secondary reporter should the Registrar’s Office not be available to report. Anticipated Completion Date 08/01/2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1173484 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $46.41M
84.268 FEDERAL DIRECT STUDENT LOANS $5.93M
84.063 FEDERAL PELL GRANT PROGRAM $2.59M
84.042 TRIO STUDENT SUPPORT SERVICES $904,595
84.044 TRIO TALENT SEARCH $750,510
84.047 TRIO UPWARD BOUND $601,922
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $122,750
84.033 FEDERAL WORK-STUDY PROGRAM $97,802
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772