Finding 1177053 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-09
Audit: 390968
Organization: University of the Pacific (CA)
Auditor: KPMG LLP

AI Summary

  • Core Issue: The University failed to report student enrollment changes accurately and on time to NSLDS, with 9 out of 60 cases showing discrepancies.
  • Impacted Requirements: Enrollment information must be reported within 30 days of changes, or within 60 days if a roster is submitted; accurate reporting is essential for compliance with federal regulations.
  • Recommended Follow-Up: Enhance internal controls to ensure timely and accurate review of all enrollment data submitted to NSLDS, including monitoring changes effectively.

Finding Text

Finding 2025-001 – Enrollment Reporting Federal Program: Student Financial Assistance Cluster Listing Number: 84.268 Federal Direct Loans Program Federal Agency: Department of Education Award Year: July 1, 2024 – June 30, 2025 Criteria: According to the Code of Federal Regulations 685.309, enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. An institution must notify the Secretary of Education if it discovers a loan under Title IV of the Act was made to or on behalf of a student who was enrolled on at least a half-time basis or failed to enroll on a least a half-time basis for the period for which the loan was intended. The Department of Education lists several certification methods for enrollment reporting, including certifying directly through the National Student Loan Data System (NSLDS) website, or certifying through NSLDS’s batch enrollment reporting process. Additionally, there are two categories of enrollment information within NSLDS, “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Further, per the NSLDS Enrollment Reporting Guide, as with any school/servicer arrangement for administration of Title IV programs, if the institution uses an Enrollment Reporting Servicer, the institution still has the primary responsibility in submitting timely, accurate, and complete responses to Enrollment Reporting Roster files, and for reporting any changes in student enrollment status in a timely manner. Institutions must also ensure to maintain proper documentation in accordance with 34 CFR 682.610(c) and 34 CFR 685.300(b). Condition and Context: The University did not have effective internal controls over the review and timely submission of student program and campus level data changes submitted to NSLDS. Of the 60 students with enrollment changes we selected for testwork, we noted that there were 9 students whose campus or program level information were not submitted accurately or timely to NSLDS. Specifically, for the 60 students, we noted the following: • The campus enrollment status for one graduated student was reported by the University as graduated to the National Student Clearinghouse (NSC); however, NSC reported the student status as withdrawal to NSLDS, and the University did not subsequently correct and report the student as graduated. • The program-level enrollment status for one graduated student was reported by the University as graduated to NSC, however the University’sStudent Information System (SIS) subsequently reported the student as active full-time on the Spring Early Registration file, which overrode the graduated status and triggered a withdrawal enrollment status. NSC reported the student status as withdrawal to NSLDS, and the University did not subsequently correct and report the student as graduated. • The campus-level enrollment statuses for two graduated students were reported by the University as graduated to NSC; however, the University’s SIS subsequently reported the students as active full-time on the Spring Early Registration file, which overrode the graduated statuses and triggered full-time enrollment statuses. NSC reported the students’ statuses as full-time to NSLDS, and the University did not subsequently correct and report the students as graduated. Additionally, the enrollment status changes were not reported within the 60-day requirement. • The campus-level enrollment effective date for one full-time student was not reported accurately by the University to NSLDS. • The campus-level enrollment effective date for one withdrawn student was not reported accurately by the University to NSLDS and was not reported within the 60-day requirement. • The program-level enrollment status for one full-time student was reported by the University to NSLDS as withdrawal rather than full-time and was not reported within the 60-day requirement. Additionally, the campus-level enrollment effective date was not reported accurately to NSLDS. • The campus-level and program-level effective dates for one full-time student was not reported accurately by the University to NSLDS and was not reported within the 60-day requirement. • The campus-level and program-level enrollment status of one half-time student was reported by the University to NSLDS as full-time and withdrawal, respectively, rather than half-time, and the enrollment effective dates were not reported accurately to NSLDS. Further, we noted that management's review control was not operating at a level of precision to ensure the students' status changes were reported accurately to NSLDS and within the 60-day requirement. Specifically, we noted the following: • Management did not properly review and correct the enrollment status change reported by NSC to NSLDS. • Management did not properly review and correct the enrollment status changes overridden by the SIS and reported to NSLDS. • Management did not properly review the campus-level and program-level enrollment effective dates reported to NSLDS. • Management did not properly review the campus-level and program-level enrollment statuses for withdrawn, full-time, and half-time students reported to NSLDS. • Management did not review the enrollment status changes in a timely manner to submit the changes to NSLDS within the 60-day requirement. Possible Cause and Effect: The University’s internal control process failed in detecting that untimely and inaccurate information was reported by the University and NSC to NSLDS. Questioned Costs: None noted. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: Yes. Recommendation: We recommend that the University enhances its internal controls to ensure all information submitted by the University and NSC to NSLDS is reviewed for accuracy on a timely basis, and to ensure all student status changes are monitored and submitted to NSLDS within 60 days of the student’s status change. View of Responsible Officials: University of the Pacific concurs with this finding. The University utilizes the services of National Student Clearinghouse to report student status data to the NSLDS. For the year ended June 30, 2025, nine students were identified whose records did not match at the program and campus levels and remained reported as enrolled. The Registrar's review of NSC and NSLDS transmission files identified a sequencing issue in which campus-level reporting overrode previously submitted program-level enrollment changes. The Registrar is reviewing all potentially impacted records and coordinating with NSC to update and confirm accurate reporting in NSLDS. In addition, the timing of monthly enrollment and degree submissions has been restructured to prevent overlapping transmissions and ensure reporting accuracy and compliance.

Corrective Action Plan

Subject: Corrective Action Plan for Federal Direct Student Loans Program Compliance The University of the Pacific acknowledges the findings outlined in the audit related to the reporting of student enrollment status to the National Student Loan Data System (NSLDS) for the Federal Direct Student Loans Program (Federal Assistance Listing Number: 84.268) for the award year July 1, 2024 – June 30, 2025. The audit identified a system-level transmittal configuration issue in which campus-level enrollment updates inadvertently overrode certain program-level enrollment status fields within NSLDS reporting. We take our responsibility to comply with the federal regulations under 34 CFR Section 685.309 very seriously and are committed to strengthening our internal controls and system governance processes to ensure accurate, complete, and timely reporting of enrollment changes at both the campus and program levels. Corrective Action Plan: To address the identified deficiency, Finding# 2025-001, related to program-level enrollment status reporting and to strengthen preventive controls over NSLDS submissions, the University has implemented the following measures, effective immediately (February 19, 2026): 1. Root Cause Isolation and System Logic Review: The University identified that a specific NSLDS transmittal file configuration resulted in campuslevel enrollment updates overriding program-level enrollment status fields. In collaboration with Information Technology, the Registrar’s Office has isolated the reporting logic and corrected the configuration to prevent program-level status fields from being overwritten by subsequent campus-level submissions. Documentation of the revised logic has been retained for audit purposes. 2. Full Population Review and Remediation: The University will conduct a comprehensive review of NSLDS records for the affected student population to confirm accuracy of program-level enrollment status. Where discrepancies are identified, corrected submissions will be transmitted promptly to NSLDS. Documentation of the review and any corrections will be maintained to ensure a complete audit trail. 3. Segregation of Campus-Level and Program-Level Reporting Logic: Enrollment reporting procedures have been updated to formally distinguish campus-level and program-level reporting workflows. Any future modifications to enrollment reporting logic will require documented change management review, regression testing, and joint approval from the Registrar’s Office and Information Technology prior to implementation. 4. Targeted Program-Level Monitoring Dashboard: In addition to existing monthly NSC and NSLDS reconciliations, the Registrar’s Office will implement a targeted monthly exception report specifically monitoring program-level enrollment status changes. This report will identify discrepancies between SIS records and transmitted data, including concurrent program records and recent status changes, to ensure ongoing data integrity. 5. Quarterly Compliance Sampling and Oversight: On a quarterly basis, an independent staff member not involved in file preparation will conduct a sampling review of transmitted NSLDS records to verify program-level status accuracy. Results will be documented and reviewed by the Registrar to ensure sustained compliance. 6. SOP Enhancement and Staff Training: The University has updated its Enrollment Reporting Standard Operating Procedures to incorporate explicit review steps for program-level data validation and transmission oversight. Targeted training has been provided to staff responsible for enrollment reporting to reinforce compliance expectations and system configuration awareness. The University remains committed to ensuring accurate and timely reporting of student enrollment data in full compliance with federal regulations. These enhanced preventive and governance controls build upon prior corrective actions and further strengthen the integrity of our Title IV reporting framework. Anticipated Completion Date: 6/30/26 Person Responsible: Michael Snyder, Associate University Registrar

Categories

Student Financial Aid Reporting

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $177.81M
93.342 HEALTH PROFESSIONS STUDENT LOANS, INCLUDING PRIMARY CARE LOANS AND LOANS FOR DISADVANTAGED STUDENTS $12.71M
84.063 FEDERAL PELL GRANT PROGRAM $8.27M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $2.31M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $1.71M
84.033 FEDERAL WORK-STUDY PROGRAM $1.59M
16.575 CRIME VICTIM ASSISTANCE $625,511
93.279 DRUG USE AND ADDICTION RESEARCH PROGRAMS $499,205
93.914 HIV EMERGENCY RELIEF PROJECT GRANTS $489,665
84.184 SCHOOL SAFELY NATIONAL ACTIVITIES $379,745
47.083 INTEGRATIVE ACTIVITIES $377,358
84.042 TRIO STUDENT SUPPORT SERVICES $349,721
84.047 TRIO UPWARD BOUND $320,328
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $289,971
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $257,069
47.074 BIOLOGICAL SCIENCES $155,061
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $132,403
45.149 PROMOTION OF THE HUMANITIES DIVISION OF PRESERVATION AND ACCESS $129,741
93.059 TRAINING IN GENERAL, PEDIATRIC, AND PUBLIC HEALTH DENTISTRY $115,951
12.300 BASIC AND APPLIED SCIENTIFIC RESEARCH $103,019
93.359 NURSE EDUCATION, PRACTICE QUALITY AND RETENTION GRANTS $93,752
93.084 PREVENTION OF DISEASE, DISABILITY, AND DEATH BY INFECTIOUS DISEASES $85,610
93.043 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART D, DISEASE PREVENTION AND HEALTH PROMOTION SERVICES $69,851
93.173 RESEARCH RELATED TO DEAFNESS AND COMMUNICATION DISORDERS $39,340
47.041 ENGINEERING $38,207
93.044 SPECIAL PROGRAMS FOR THE AGING, TITLE III, PART B, GRANTS FOR SUPPORTIVE SERVICES AND SENIOR CENTERS $18,654
47.050 GEOSCIENCES $16,769
93.121 ORAL DISEASES AND DISORDERS RESEARCH $8,605
93.761 EVIDENCE-BASED FALLS PREVENTION PROGRAMS FINANCED SOLELY BY PREVENTION AND PUBLIC HEALTH FUNDS (PPHF) $177
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $60