Finding 1176568 (2025-007)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-05
Audit: 390365
Organization: Johnson C. Smith University (NC)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to accurately and timely report student enrollment status changes to the NSLDS, affecting compliance with federal requirements.
  • Impacted Requirements: Enrollment reporting must include accurate data for both Campus-Level and Program-Level records within 60 days of status changes.
  • Recommended Follow-Up: Enhance internal controls and establish formal policies to ensure timely and accurate reporting of enrollment changes to the NSLDS.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Student Loans (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions - Enrollment Reporting: The University is required to update students’ statuses on the National Student Loans Data System (“NSLDS”) website if they graduate, withdraw or have an increase/decrease in attendance level during the year within 60 days of the date the University becomes aware of the change in enrollment status. There are two categories of enrollment information: “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Institutions are responsible for accurately reporting the significant data elements under the Campus-Level Record and Program-Level Record that ED considers high risk. Additionally, institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. As with any school/servicer arrangement for the administration of the Title IV programs, if the school uses a third party to meet the NSLDS enrollment reporting requirements, it is the school that must ensure that enrollment information is submitted timely, accurately, and completely. Condition: The University did not accurately report certain significant data elements to the NSLDS website for certain students who graduated, withdrew, or had an increase/decrease in attendance level during the year. Cause: Insufficient administrative oversight and internal controls with respect to enrollment reporting compliance requirements. Effect or Potential Effect: The University is not in compliance with enrollment reporting compliance requirements. Failure to promptly report accurate and timely changes in enrollment status may adversely impact the repayment status for student loan borrowers. Questioned Costs: None. Context: We noted the following exceptions during our testing: • For 8 of 40 students sampled whose status changed during the year, the University failed to accurately report all significant data elements under the Campus-Level Record in a timely notification to the NSLDS website. • For 10 of 40 students sampled whose status changed during the year, the University failed to accurately report all significant data elements under the Program-Level Record in a timely notification to the NSLDS website. Identification as a Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2024-006 in the prior year schedule of findings and questioned costs. Recommendation: We recommend that the University enhance its internal controls and implement formal policies and procedures over the applicable compliance requirements to ensure that all status changes are submitted accurately to the NSLDS website within the required timeframe. Views of Responsible Officials: The University acknowledges deficiencies in the accuracy and timeliness of enrollment status reporting to the National Student Loan Data System (NSLDS) during the 2024–2025 award year. Specifically, required Campus-Level and Program-Level enrollment data elements were not consistently reported accurately or within required federal reporting timeframes for students whose enrollment status changed. As a result, the University was unable to consistently demonstrate compliance with federal enrollment reporting requirements, increasing institutional risk related to student loan repayment status, Title IV eligibility, and audit defensibility. The University determined that these deficiencies were primarily attributable to weaknesses in the Registrar’s enrollment reporting controls, including reliance on legacy system processes without sufficient reconciliation, validation, and quality assurance review prior to NSLDS submission. Contributing factors included the absence of a standardized reporting calendar, documented review procedures, and consistent supervisory oversight. As a repeat finding, these conditions underscore the need for strengthened Registrar-led governance, formalized enrollment reporting controls, and sustained monitoring to ensure accurate and timely Campus-Level and Program-Level reporting.

Corrective Action Plan

Corrective Action Plan: To address the deficiencies identified in Finding 2025-008, the University has implemented and continues to strengthen a Registrar-led corrective action framework focused on improving the accuracy, timeliness, and oversight of Campus-Level and Program-Level enrollment reporting to the National Student Loan Data System (NSLDS). Primary Control Enhancements. The University has engaged Strata Information Group (SIG) to support validation and configuration of enrollment reporting functionality within Ellucian Colleague. This engagement assists the Registrar’s Office in ensuring that enrollment status changes, credential completions, and program-level data are transmitted accurately through established reporting processes. Responsibility for enrollment reporting remains with the Office of the Registrar, with SIG serving in a technical advisory capacity. The Office of the Registrar will establish a structured enrollment reporting cadence, including submission of enrollment files on a bimonthly basis. This reporting schedule will ensure timely identification and reporting of enrollment status changes in compliance with federal requirements and reduce reliance on ad hoc or event-driven reporting. Supporting Controls and Training. To further strengthen upstream data integrity, the Registrar’s Office will implement enrollment governance controls, including restricting late graduation applications and limiting major declarations to designated academic periods. These controls reduce late-cycle data changes that previously contributed to reporting inconsistencies. Monitoring and Quality Assurance. The Office of the Registrar has institutionalized a formal quality assurance calendar requiring enrollment reporting reviews at least twice per semester. These reviews validate the accuracy and timeliness of Campus-Level and Program-Level enrollment data reported to the National Student Clearinghouse (NSC) and, by extension, NSLDS. As part of this monitoring framework, the Registrar’s Office will conduct periodic sampling of reported enrollment records to confirm compliance with reporting timelines and verify the effectiveness of enrollment reporting controls. Sustained Oversight. Any discrepancies identified through quality assurance reviews will be documented, corrected, and evaluated to inform process refinement and prevent recurrence. To support reconciliation and data validation, the Registrar’s Office will meet monthly with the Office of Data Analytics to compare enrollment data within Ellucian Colleague to downstream reporting outputs. Anticipated Completion Date: June 2026

Categories

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1176550 2025-001
    Material Weakness Repeat
  • 1176551 2025-001
    Material Weakness Repeat
  • 1176552 2025-001
    Material Weakness Repeat
  • 1176553 2025-001
    Material Weakness Repeat
  • 1176554 2025-002
    Material Weakness Repeat
  • 1176555 2025-002
    Material Weakness Repeat
  • 1176556 2025-003
    Material Weakness Repeat
  • 1176557 2025-003
    Material Weakness Repeat
  • 1176558 2025-003
    Material Weakness Repeat
  • 1176559 2025-003
    Material Weakness Repeat
  • 1176560 2025-004
    Material Weakness Repeat
  • 1176561 2025-005
    Material Weakness Repeat
  • 1176562 2025-005
    Material Weakness Repeat
  • 1176563 2025-005
    Material Weakness Repeat
  • 1176564 2025-006
    Material Weakness Repeat
  • 1176565 2025-006
    Material Weakness Repeat
  • 1176566 2025-006
    Material Weakness Repeat
  • 1176567 2025-007
    Material Weakness Repeat
  • 1176569 2025-008
    Material Weakness Repeat
  • 1176570 2025-008
    Material Weakness Repeat
  • 1176571 2025-008
    Material Weakness Repeat
  • 1176572 2025-008
    Material Weakness Repeat
  • 1176573 2025-008
    Material Weakness Repeat
  • 1176574 2025-008
    Material Weakness Repeat
  • 1176575 2025-009
    Material Weakness Repeat
  • 1176576 2025-009
    Material Weakness Repeat
  • 1176577 2025-009
    Material Weakness Repeat
  • 1176578 2025-010
    Material Weakness Repeat
  • 1176579 2025-010
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $12.35M
84.063 FEDERAL PELL GRANT PROGRAM $6.16M
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $2.38M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $499,663
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $457,333
84.120 MINORITY SCIENCE AND ENGINEERING IMPROVEMENT $401,852
84.033 FEDERAL WORK-STUDY PROGRAM $388,738
84.047 TRIO UPWARD BOUND $369,588
84.042 TRIO STUDENT SUPPORT SERVICES $366,285
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $269,267
84.217 TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT $232,533
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $201,323
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $185,839
93.391 ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES $48,474
89.003 NATIONAL HISTORICAL PUBLICATIONS AND RECORDS GRANTS $46,856
97.062 SCIENTIFIC LEADERSHIP AWARDS $26,250
97.061 CENTERS FOR HOMELAND SECURITY $15,207
11.417 SEA GRANT SUPPORT $5,250
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $4,800
93.310 TRANS-NIH RESEARCH SUPPORT $2,000
17.268 H-1B JOB TRAINING GRANTS $1,078
54.001 INTELLIGENCE COMMUNITY CENTERS FOR ACADEMIC EXCELLENCE $773