Finding 1175625 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-26
Audit: 389454
Organization: National University (CA)

AI Summary

  • Core Issue: The University failed to report student enrollment status changes on time, violating federal regulations.
  • Impacted Requirements: Enrollment status must be reported to NSLDS within 30 or 60 days, and updates should occur at least every 60 days.
  • Recommended Follow-Up: Implement a contingency plan for enrollment reporting during access disruptions, including monitoring NSC access and alternative procedures.

Finding Text

Federal Agency: United States Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. In addition, a school must report student enrollment at least every 60 days. Condition: During our testing of 60 students, we noted 33 instances where the students status wasn’t reported at least every 60 days and 5 instances where the change of status wasn’t reported timely. Questioned Costs: None Context: In October 2024, the University was notified by NSC that their access to process enrollment reporting to NSC was revoked during July 2024. This issue was resolved in October 2024, however, errors were still identified due to the reporting gap. Cause: The revocation of NSC access in July 2024 created a reporting gap, during which enrollment updates were not submitted timely. Effect: The University did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely Repeat Finding: Yes. 2024-002. Recommendation: We recommend the University establish and implement a contingency process to ensure enrollment reporting continues during system access disruptions. This process should include monitoring NSC access status and developing alternative procedures to prevent reporting gaps, ensuring that all student statuses are submitted accurately and within the required 60-day timeframe. Views of Responsible Official: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the University establish and implement a contingency process to ensure enrollment reporting continues during system access disruptions. This process should include monitoring NSC access status and developing alternative procedures to prevent reporting gaps, ensuring that all student statuses are submitted accurately and within the required 60-day timeframe. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: National University agrees with the importance of ensuring accurate and timely enrollment reporting to NSLDS. The University has taken significant steps to improve its internal controls and compliance with enrollment reporting requirements. The University has identified a few items that have resulted in challenges to accurate and timely enrollment reporting during the audit year. National Student Clearing House (NSC) reporting: On October 18, 2024, the institution was notified by NSC that its access to process enrollment reporting on behalf of NU was revoked during July 2024, resulting in a reporting gap. The University took immediate action to restore access to NSC. Access issues were fully resolved on October 23, 2024. Additionally, NU revised its policies and implemented an internal control plan that monitors NSC activity allowing for proactive identification of future service interruptions. All 33 enrollment certification errors occurred during the disconnect noted above. The University believes its current enrollment certification processes are timely, accurate, and compliant. Timing of implemented enrollment reporting changes: During the audit period National University implemented several improvements to refine and enhance the timeliness of its enrollment reporting. NU established stronger alignment across both OPEIDs and adjusted its timelines to ensure consistent and timely submissions. As part of this effort, the University restructured its reporting schedule, so that finalized enrollment report is submitted by the 6th of each month, supporting a successful and expedited monthly transfer from NSC to NSLDS. Since implementing these revised timelines and deadlines, the University has observed significant improvements and consistency in its internal QA audit scores during the audit period (since January 2025). Four of the five late reporting instances occurred before the implementation date of the University’s enrollment reporting changes. The University believes its refined and enhanced process changes demonstrate its commitment to timely, accurate, and compliant enrollment certification processes. One of the five late reporting instances occurred after the implementation date, and that was related to the student’s status change from active, to pending graduate, to graduate, and then withdrawn. The University will evaluate its process for reporting student status changes from pending graduate, graduate, and withdrawal to ensure clear definitions and status flows are in place. The University will create and deliver focused training in this area to stress the importance of accurate enrollment reporting. In addition to the above, the University will continue to take the following steps: • Continued monitoring and refining of processes to maintain timely and accurate reporting. Including, but not limited to its monthly testing of enrollment reporting accuracy to NSLDS conducted by the quality assurance team. • Identification and timely delivery of training for areas of opportunity identified in the monthly reviews to the registrar and data operations teams. • Revise the internal changes and documentation processes to ensure clarity of policy and regulatory guidance in areas of identified risk/confusion during enrollment reporting processing. Name(s) of the contact person(s) responsible for corrective action: - Rob Conlon, AVP Financial Aid Compliance - Sarah Massey, AVP of Operations Student Support and Registrar Operations - Gabrielle Witruke, Associate Director Data Analytics Planned completion date for corrective action plan: November 2025

Categories

Student Financial Aid Subrecipient Monitoring Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1175614 2025-001
    Material Weakness Repeat
  • 1175615 2025-001
    Material Weakness Repeat
  • 1175616 2025-001
    Material Weakness Repeat
  • 1175617 2025-001
    Material Weakness Repeat
  • 1175618 2025-001
    Material Weakness Repeat
  • 1175619 2025-001
    Material Weakness Repeat
  • 1175620 2025-002
    Material Weakness Repeat
  • 1175621 2025-002
    Material Weakness Repeat
  • 1175622 2025-002
    Material Weakness Repeat
  • 1175623 2025-002
    Material Weakness Repeat
  • 1175624 2025-002
    Material Weakness Repeat
  • 1175626 2025-003
    Material Weakness Repeat
  • 1175627 2025-004
    Material Weakness Repeat
  • 1175628 2025-004
    Material Weakness Repeat
  • 1175629 2025-004
    Material Weakness Repeat
  • 1175630 2025-004
    Material Weakness Repeat
  • 1175631 2025-004
    Material Weakness Repeat
  • 1175632 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $283.30M
84.063 FEDERAL PELL GRANT PROGRAM $30.73M
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $2.36M
84.215 INNOVATIVE APPROACHES TO LITERACY; PROMISE NEIGHBORHOODS; FULL-SERVICE COMMUNITY SCHOOLS; AND CONGRESSIONALLY DIRECTED SPENDING FOR ELEMENTARY AND SECONDARY EDUCATION COMMUNITY PROJECTS $1.77M
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $1.76M
93.359 NURSE EDUCATION, PRACTICE QUALITY AND RETENTION GRANTS $933,273
84.411 EDUCATION INNOVATION AND RESEARCH (FORMERLY INVESTING IN INNOVATION (I3) FUND) $644,976
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $634,983
84.031 HIGHER EDUCATION INSTITUTIONAL AID $601,757
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $424,057
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $321,590
84.033 FEDERAL WORK-STUDY PROGRAM $256,650
84.428 AUGUSTUS F. HAWKINS CENTERS OF EXCELLENCE—TEACHER PREPARATION AND DEVELOPMENT $180,036
93.124 NURSE ANESTHETIST TRAINEESHIP $131,942
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $108,735
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $87,646
64.058 VETERAN AND SPOUSE TRANSITIONAL ASSISTANCE GRANT PROGRAM (VSTAGP) $80,808
12.902 INFORMATION SECURITY GRANTS $10,424
12.420 MILITARY MEDICAL RESEARCH AND DEVELOPMENT $6,859
12.903 GENCYBER GRANTS PROGRAM $875
84.425 EDUCATION STABILIZATION FUND $-4,005