Finding 1179424 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-13
Audit: 391825
Organization: Franklin & Marshall College (PA)

AI Summary

  • Core Issue: A student's change in enrollment status was not reported to NSLDS within the required 30 days, leading to potential inaccuracies in federal loan administration.
  • Impacted Requirements: Compliance with Title IV regulations regarding timely updates to enrollment reports and student notifications.
  • Recommended Follow-Up: Improve processing of leave of absence requests and notifications to ensure timely reporting to NSLDS, including staffing adjustments for efficiency.

Finding Text

Federal Program Title: Federal Direct Student Loans Federal Agency: U.S. Department of Education Pass-Through Entity: Not Applicable Program Assistance Listing No: 84.268 Federal Award Year: June 30, 2025 Award Number: N/A Criteria: Title IV regulations (34 CFR 685.309(b)) require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the institution and who received a loan under Title IV of the Act has changed his or her permanent address. Condition and Context: The change in student status for 1 of the 25 students tested was not reported to the National Student Loan Data Systems (NSLDS) within 30 days or included in a response to a roster file within 60 days. Our sample was not a statistically valid sample. Cause: The exception resulted from delays in processing the student’s leave of absence (LOA) documentation and in issuing the required student notification letter, which led to misalignment between the College’s internal records and the effective date reported to NSLDS. Effect: Failure to report accurate enrollment status changes on a timely basis may result in inaccurate information within NSLDS, which could impact the proper administration of Title IV aid, including loan repayment status, deferment eligibility, and federal oversight monitoring. Recommendation: The College should refine processes regarding the timely processing of LOA requests and related student notifications to ensure enrollment status changes are reported accurately and promptly to NSLDS in accordance with federal requirements. Questioned Costs: None noted. Views of Responsible Officials and Planned Corrective Actions: The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdrawal and processes all leaves, making the system more efficient. The Office of Financial Aid will continue to process Return to Title IV calculations immediately when notified about a Title IV recipient’s leave of absence or withdrawal.

Corrective Action Plan

The College will ensure the accuracy of reports sent to NSLDS by making changes to their staffing structure and roles surrounding student leave of absences and withdrawals. The College hired a single administrator who assists students through the process of requesting a leave of absence or a withdrawal and processes all leaves, making the system more efficient. The Office of Financial Aid will continue to process Return to Title IV calculations immediately when notified about a Title IV recipient’s leave of absence or withdrawal.

Categories

Student Financial Aid Subrecipient Monitoring Eligibility

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $7.87M
84.063 FEDERAL PELL GRANT PROGRAM $1.88M
47.074 BIOLOGICAL SCIENCES $378,476
84.038 FEDERAL PERKINS LOANS $361,922
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $319,246
84.033 FEDERAL WORK-STUDY PROGRAM $270,581
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $252,351
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $213,718
14.906 HEALTHY HOMES TECHNICAL STUDIES GRANTS $125,197
98.001 USAID FOREIGN ASSISTANCE FOR PROGRAMS OVERSEAS $103,955
47.050 GEOSCIENCES $86,145
11.609 MEASUREMENT AND ENGINEERING RESEARCH AND STANDARDS $59,748
47.075 SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES $32,068
43.001 SCIENCE $30,335
10.924 CONSERVATION STEWARDSHIP PROGRAM $25,258
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $16,094
93.304 RACIAL AND ETHNIC APPROACHES TO COMMUNITY HEALTH $12,788
47.083 INTEGRATIVE ACTIVITIES $11,722
43.008 EDUCATION $8,796
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $987