Finding 1175539 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-26
Audit: 389325
Organization: Southwestern University (TX)

AI Summary

  • Core Issue: The University failed to report student attendance changes to the NSLDS within the required 60 days.
  • Impacted Requirements: Compliance with enrollment reporting criteria under the Special Test and Provisions for Student Financial Aid.
  • Recommended Follow-up: Implement a process to ensure timely capture and reporting of student status changes to the NSLDS.

Finding Text

Finding 2025-001 – Student Financial Aid Cluster, Assistance Listing # 84.063 and 84.268 Compliance Requirement: Special Test and Provisions – Enrollment Reporting Criteria: The University is required to send changes in attendance levels of students, including students who, graduated, withdrew, dropped out, or enrolled changes to the National Student Loan Data System (“NSLDS”) within 60 days of the change. Condition: The University did not send changes in attendance levels of students, including students who graduated, withdrew, dropped out, or enrolled changes to the NSLDS within 60 days of the change. Cause: The University had not reported status changes of students to the NSLDS as required under the Uniform Grant Guidance for the year ended June 30, 2025. The status information reported in the University’s system, was incorrectly extracted for the submission to the National Student Clearinghouse and NSLDS, which created discrepancies between the statuses. Context: The University had one incorrect status effective date, one incorrect status change, and sent two status changes to the NSLDS after 60 days. Effect: The University did not report status changes to the NSLDS timely and appropriately. Recommendation: The University should put in place a process to timely capture student changes so they can be reported to the NSLDS. Management Response: The University concurs with this finding. Corrective Action Plan: See attached management’s corrective action plan.

Corrective Action Plan

Student Financial Aid Corrective Action Plan Institution Name: Southwestern University Audit/Review Period: FY 2024-2025 Date of Plan: Feb 4, 2026 Finding: 2025-001 Effect: The University did not report withdraw changes to the NSLDS timely. Recommendation: The University should put in place a process to timely capture student status changes so that they can be reported to the NSLDS. Management Response: The University concurs with this finding. University Corrective Action Plan: Every 30 days, the University reports updated student enrollment activity, encompassing attendance levels, graduation status, withdrawals, dropouts, and enrollment changes, to the National Student Loan Database System via the National Student Clearinghouse. Regrettably, during the 2024-25 academic year, an unforeseen error from the Clearinghouse resulted in the dissemination of incorrect enrollment statuses for a subset of our students. This oversight was beyond the Registrar's Office's knowledge, leading to an unintended delay in rectifying the reported statuses. We believe this Clearinghouse error was an isolated incident, having never occurred in any preceding academic year. The issue has been effectively resolved and should not recur in the future. Nevertheless, as a proactive measure, commencing with the 2025-26 academic year, the Financial Aid Office will collaborate with the Registrar's Office to review a representative sample of at least 10% of student records transmitted to the Clearinghouse. This review process will serve as an additional safeguard, ensuring the accuracy and timeliness of our reporting requirements.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 1175537 2025-001
    Material Weakness Repeat
  • 1175538 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $10.12M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $743,319
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $364,340
84.047 TRIO UPWARD BOUND $300,017
84.033 FEDERAL WORK-STUDY PROGRAM $199,085
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $135,481
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $54,171
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $23,235
45.310 GRANTS TO STATES $90
84.063 FEDERAL PELL GRANT PROGRAM $20