Finding 1179008 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-11
Audit: 391418
Organization: Howard Community College (MD)

AI Summary

  • Core Issue: Enrollment status changes were not reported to NSLDS within the required 60 days, leading to inaccuracies.
  • Impacted Requirements: Compliance with 34 CFR 685.309(b) and 34 CFR 682.610 regarding timely and accurate reporting of student enrollment data.
  • Recommended Follow-Up: Review and improve procedures for reporting enrollment changes to ensure compliance and accuracy in future submissions.

Finding Text

U.S. Department of Education 2025-005: Special Tests and Provisions – NSLDS Enrollment Reporting Student Financial Aid Cluster – Assistance Listing No. 84.063, 84.268 Condition: Enrollment status changes were either not reported to NSLDS within 60 days 2025 – 005: Special Tests and Provisions – NSLDS Enrollment & Reporting Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268 Federal Award Identification Number: P063P233052, P063P243052, P268K243052, P268K253052 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 2025 – 005: Special Tests and Provisions – NSLDS Enrollment & Reporting Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268 Federal Award Identification Number: P063P233052, P063P243052, P268K243052, P268K253052 Award Period: July 1, 2024 – June 30, 2025 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or specific requirement: Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non- Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance – The Code of Federal Regulations, 34 CFR 685.309(b), states that: Institutions must have some arrangement to report student enrollment data to NSLDS through an enrollment roster file. The institution is required to report changes in the enrollment status, the effective date of the status, and an anticipated completion date. Also, the Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Condition: Enrollment status changes were either not reported to NSLDS within 60 days or did not match the College’s records for a portion of the sampled students. Questioned Costs: None Context: In our statistically valid sample of 60 students, we found 16 cases where enrollment status changes were not reported to NSLDS within 60 days, and 4 cases where the students’ status changes did not match between the College’s records and NSLDS. Cause: The College's internal controls did not identify the errors in compliance with the criteria mentioned above. Effect: Student enrollment status was not reported accurately and/or timely to NSLDS. Repeat Finding: Yes Recommendation: The institution should evaluate their procedures and policies related to reporting status changes and effective dates to NSLDS and enhance as deemed necessary to ensure that accurate information is reported to NSLDS. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

U.S. Department of Education 2025-005: Special Tests and Provisions - NSLDS Enrollment Reporting Student Financial Aid Cluster -Assistance Listing No. 84.063, 84.268 Condition: Enrollment status changes were either not reported to NSLDS within 60 days or did not match the College's records for a portion of the sampled students. Recommendation: The institution should evaluate their procedures and policies related to reporting status changes and effective dates to NSLDS and enhance as deemed necessary to ensure that accurate information is reported to NSLDS. Explanation of disagreement with audit finding : There is no disagreement with the audit finding. The Institution acknowledges that while reporting was completed within a timely manner by HCC, NSC did not update within the time allotted to be compliant. HCC remains committed to continuous improvement and compliance. Action taken in response to finding: As noted in the prior year's response, the College committed to full implementation of corrective actions by June 30, 2026, aligned with the conclusion of the 2025-2026 academic year. The institution is currently and actively working on the corrective action plan previously submitted. Actions underway or in progress include: Formal clarification of interdepartmental roles and responsibilities, establishing the Records, Registration and Veteran's Affairs (RRVA) as the primary enrollment reporting authority, with defined review and compliance support from Financial Aid Services. Enhanced reconciliation and quality control procedures, including routine cross-checks between RRVA and Financial Aid Services records prior to each enrollment reporting submission. Standardized review protocols for program-level enrollment changes, including graduates, withdrawals, and subsequent reenrollments in different academic programs. Ongoing monitoring and documentation of NSC errors and warning reports, with timely resolution and escalation when discrepancies appear to originate outside of the College's student information systems. Targeted training for RRVA and Financial Aid staff on enrollment reporting regulations, NSLDS requirements, and audit-risk mitigation. The College believes these actions, coupled with existing reporting practices, sufficiently address the concerns raised and will further strengthen enrollment reporting accuracy and documentation. Full implementation of the corrective action plan remains on schedule for completion by June 30, 2026, as originally committed. Name(s) of the contact person(s) responsible for corrective action: Detra Hooper, Financial Aid Director and Jessica Peterson, Registrar Planned completion date for corrective action plan: June 30, 2026 If the U.S. Department of Education has questions regarding this plan, please call Detra Hooper, Financial Aid Servies Director at 443-518-4776.

Categories

Special Tests & Provisions Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1179005 2025-005
    Material Weakness Repeat
  • 1179006 2025-005
    Material Weakness Repeat
  • 1179007 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $11.94M
84.268 FEDERAL DIRECT STUDENT LOANS $3.66M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $832,931
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $620,508
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $337,401
84.033 FEDERAL WORK-STUDY PROGRAM $267,260
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $237,535
12.900 LANGUAGE GRANT PROGRAM $125,550
17.285 REGISTERED APPRENTICESHIP $112,642
11.620 SCIENCE, TECHNOLOGY, BUSINESS AND/OR EDUCATION OUTREACH $37,607
12.903 GENCYBER GRANTS PROGRAM $33,222
84.425 EDUCATION STABILIZATION FUND $16,842
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $11,878