Finding 1173576 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-13
Audit: 387286
Organization: Providence Christian College (CA)

AI Summary

  • Core Issue: The university failed to notify the NSLDS of student status changes within the required 30-day timeframe.
  • Impacted Requirements: Enrollment Reporting for Pell Grant and Direct Loan programs mandates timely updates on student status changes.
  • Recommended Follow-Up: Establish a clear remittance schedule to ensure timely reporting and clarify responsibilities with third-party servicers.

Finding Text

Information on the Federal Program – Department of Education, Student Financial Assistance Cluster, Federal Pell Grant Program, 84.063; Federal Direct Student Loan Program, 84.268. Program Year – July 1, 2024 – June 30, 2025 Criteria or Specific Requirement – Special Tests and Provisions – Enrollment Reporting – Under the Pell grant and loan programs, colleges must complete and return within 30 days the Enrollment Reporting roster file. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date and submit the changes electronically through the batch method or the NSLDS web site. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Unless the school expects to complete its next roster within 60 days, the University must notify the lender or the guaranty agency within 30 days, if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. (Pell, 34 CFR Section 690.83(b)(2); Direct Loan, 34 CFR Section 685.309(2)(i)). Condition – Notification of the student status change (graduated, withdrew, less than half-time) did not reach the NSLDS within the required timeframe. Questioned Costs – None – nonmonetary finding Context – Out of a sample of 5 students from a population of 50 students who had changes in status during the year, NSLDS was not provided timely notification for 5 of the student status changes reviewed. Our sample was not, and was not intended to be, statistically valid. Cause – In November of 2023, Providence Christian College faced significant institutional turnover. The Financial Aid Director of 15 years left the institution. The appointed successor to the Financial Aid Director then made a decision to leave the institution on December 15th, 2023. This institutional turmoil created upheaval in the department and required the assistance of a consultant. The current provider, Campus Ivy, was not able to provide consulting services and so Providence contracted with FA Solutions to bring stability to the Financial Aid Department. In this situation, Providence mistakenly assumed that FA Solutions would take over the responsibility of Enrollment Reporting as Campus Ivy had done. It was not until the audit that it was discovered that the FA Solutions contract did not include Enrollment Reporting services. Effect – The status change was ultimately reported correctly to NSLDS but was not performed timely. Identification as a Repeat Finding – N/A Recommendation – We recommend the University ensure the remittance schedule is properly established to allow for timely remittance.

Corrective Action Plan

Views of Responsible Officials and Planned Corrective Actions – The Registrar and Institutional Researcher will both ensure that any students that have updated their status are updated on a weekly basis. The Institutional Researcher will log into NSLDS to upload the file, and the CFO, Registrar, and Institutional Researcher will monitor updates monthly.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1173565 2025-002
    Material Weakness Repeat
  • 1173566 2025-002
    Material Weakness Repeat
  • 1173567 2025-002
    Material Weakness Repeat
  • 1173568 2025-002
    Material Weakness Repeat
  • 1173569 2025-003
    Material Weakness Repeat
  • 1173570 2025-003
    Material Weakness Repeat
  • 1173571 2025-004
    Material Weakness Repeat
  • 1173572 2025-004
    Material Weakness Repeat
  • 1173573 2025-004
    Material Weakness Repeat
  • 1173574 2025-004
    Material Weakness Repeat
  • 1173575 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $927,662
84.031 HIGHER EDUCATION INSTITUTIONAL AID $584,997
84.063 FEDERAL PELL GRANT PROGRAM $395,240
84.033 FEDERAL WORK-STUDY PROGRAM $23,998
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $8,206