Finding 1173604 (2025-001)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-02-16

Audit: 387330

Organization: Northeastern State University (OK)

Auditor: FORVIS MAZARS LLP

AI Summary

Core Issue: The University’s internal controls failed to ensure accurate reporting to the National Student Loan Data System (NSLDS).
Impacted Requirements: Compliance with NSLDS reporting standards under 34 CFR 690.83(b)(2) and 34 CFR 685.309.
Recommended Follow-Up: Review and update internal controls to improve accuracy in reporting to NSLDS.

Finding Text

Student Financial Assistance Cluster Federal Pell Grants, ALN 84.063 Federal Direct Student Loans, ALN 84.268 U.S. Department of Education Program Year 2024 - 2025 Criteria or Specific Requirement - Special Tests: NSLDS Reporting 34 CFR 690.83(b)(2) and 34 CFR 685.309 Condition - The University's internal controls did not ensure records reported to the National Student Loan Data System (NSLDS) were accurate. Cause - The program CIP Code was changed between academic year 2023-24 and 2024-25 and the update was not reflected in the student information system, Banner. The first of term degree file for Spring 2025 was delayed as the result of issues with the degree file for Fall 2024. Effect or Potential Effect - Incorrect enrollment data was reported to NSLDS. Questioned Costs - None Context - Out of a population of 4,798 status changes of students receiving Pell Grants and/or Direct Student Loans, a sample of 25 students with status changes were selected for testing. Our sample was not, and was not intended to be statistically valid. For 1 of the students tested, the CIP Code reported to NSLDS did not agree to the 2024-25 University course catalog. For 1 of the students tested, the withdrawal status was not reported to NSLDS. For 1 of the students tested, the enrollment change was submitted to Clearinghouse but was not reported to NSLDS. For 3 of the students tested, the certification date was greater than 60 days from the time the University had knowledge of the status change. Identification as a Repeat Finding - N/A Recommendation - The University should review and update their internal controls to ensure proper reporting to NSLDS.

Corrective Action Plan

Personnel turnover within the Office of the Registrar (July 2023) and the AVP for Academic Affairs (June 2024) led to procedural gaps during these transitions. Some of the proccesses and procedures suffered from a lack of transitional clarity. The Office of the Registrar is responsible for updating the STVMAJR screen in Banner which is a manual process. To rectify this, we have created a streamlined process for updates to the curriculum workflow to ensure precise alignment between Banner and CIP codes. This includes a new monthly meeting between the Registrar, Associate Registrar and AVP to review all curriculum updates, modifications, and new programs to prevent future errors. Issues with the Fall 2024 degree file delayed First of Term processing for Spring 2025. A defect introducted by an Ellucian update affected the degree file output and was resolved by updating the Banner page STVACAT (specifically the NSC Credential Level Translation column). This issue is not expected to recur. Spring 2025 First of Term processing was also delayed due to the manual creation of approximately 200 Social Security Numbers for newly admitted international students following the SLATE implementation and Admissions staffing turnover. This process has since been automated through an update to an Argos generator, eliminating the need for manual SSN creation. In addition, the National Student Clearinghouse transmission schedules were updated to allow additional processing time between files and to avoid submissions during the winter break. Specifically, transmissions for Fall Subsequent of Term were moved from January 1 to January 11, Fall Graduates Only (WS) from January 4 to January 18, and the Fall Degree file from January 14 to January 25.

Other Findings in this Audit

1173603 2025-001

Material Weakness Repeat
1173605 2025-002

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$27.95M
84.063	FEDERAL PELL GRANT PROGRAM	$15.93M
12.630	BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING	$902,896
93.493	CONGRESSIONAL DIRECTIVES	$868,589
84.031	HIGHER EDUCATION INSTITUTIONAL AID	$865,889
84.425	EDUCATION STABILIZATION FUND	$815,010
21.027	CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS	$508,531
84.044	TRIO TALENT SEARCH	$490,514
84.047	TRIO UPWARD BOUND	$450,591
11.028	CONNECTING MINORITY COMMUNITIES PILOT PROGRAM	$444,826
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$437,180
84.042	TRIO STUDENT SUPPORT SERVICES	$388,593
84.116	FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION	$370,354
84.033	FEDERAL WORK-STUDY PROGRAM	$334,427
84.335	CHILD CARE ACCESS MEANS PARENTS IN SCHOOL	$288,059
84.382	STRENGTHENING MINORITY-SERVING INSTITUTIONS	$286,335
84.066	TRIO EDUCATIONAL OPPORTUNITY CENTERS	$276,008
84.325	FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION	$263,583
84.038	FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS	$150,040
93.970	HEALTH PROFESSIONS RECRUITMENT PROGRAM FOR INDIANS	$112,686
84.379	TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS)	$91,002
11.611	MANUFACTURING EXTENSION PARTNERSHIP	$85,771
47.083	INTEGRATIVE ACTIVITIES	$71,144
84.184	SCHOOL SAFELY NATIONAL ACTIVITIES	$68,835
93.788	OPIOID STR	$63,356
10.902	SOIL AND WATER CONSERVATION	$56,211
47.076	STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES)	$52,971
93.391	ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES	$43,107
93.859	BIOMEDICAL RESEARCH AND RESEARCH TRAINING	$29,905
84.334	GAINING EARLY AWARENESS AND READINESS FOR UNDERGRADUATE PROGRAMS	$29,469
20.205	HIGHWAY PLANNING AND CONSTRUCTION	$22,578
15.634	STATE WILDLIFE GRANTS	$20,911
45.162	PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT	$17,459
84.299	INDIAN EDUCATION -- SPECIAL PROGRAMS FOR INDIAN CHILDREN	$13,595
16.710	PUBLIC SAFETY PARTNERSHIP AND COMMUNITY POLICING GRANTS	$6,188
89.003	NATIONAL HISTORICAL PUBLICATIONS AND RECORDS GRANTS	$4,339
93.283	CENTERS FOR DISEASE CONTROL AND PREVENTION INVESTIGATIONS AND TECHNICAL ASSISTANCE	$4,327
45.025	PROMOTION OF THE ARTS PARTNERSHIP AGREEMENTS	$3,200