Finding 1175632 (2025-004)

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

AI Summary

  • Core Issue: The University reported tuition and fees on the FISAP that were understated by $107,109.
  • Impacted Requirements: Compliance with 34 CFR 674.19, 675.19, 676.19 and 20 U.S.C. 1094 mandates accurate reporting to the Department of Education.
  • Recommended Follow-Up: The University should establish procedures to ensure accurate FISAP reporting in the future.

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 674.19, 34 CFR 675.19, 34 CFR 676.19 and 20 U.S.C. 1094 require institutions to accurately report information to the Department of Education via the FISAP. Condition: Audit testing identified that tuition and fees reported on the FISAP were understated by $107,109. The University had until December 15, 2025 to submit a corrected FISAP, and the updated report reflecting the accurate tuition and fees was submitted on December 12, 2025. Questioned Costs: None Context: We noted the University understated the tuition and fees on the FISAP. Cause: A portion of the fees were inadvertently omitted from the tuition and fees reported on the FISAP. Effect: The FISAP is not accurately stated Repeat Finding: No. Recommendation: We recommend that the University establish procedures to ensure that FISAP is accurately presented. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend that the University establish procedures to ensure that FISAP is accurately presented. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: National University (NU) agrees with the importance of ensuring the accuracy of its data reported in the FISAP. The University will take the following steps to resolve the issue. NU identified a knowledge gap for the tuition and fees reporting required on the FISAP. Training will be conducted to review the requirements for reporting tuition and fees at the Undergraduate and Graduate levels, which are fully reconciled to the audited financial statements. In addition to the training, the University has implemented a secondary review of the calculation, which will be completed by the University controller prior to submission. Name(s) of the contact person(s) responsible for corrective action: - Robert Conlon, AVP Financial Aid Compliance - Christina Nowacki, Controller Planned completion date for corrective action plan: December 2025

Categories

Student Financial Aid 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
  • 1175625 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

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