Finding 1181369 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-18
Audit: 392593
Organization: Millikin University (IL)
Auditor: SIKICH CPA LLC

AI Summary

  • Core Issue: Enrollment statuses for 3 out of 40 students (7.5%) were reported incorrectly to NSLDS, leading to noncompliance with federal requirements.
  • Impacted Requirements: Institutions must update enrollment statuses within 15 days as per 34 CFR 685.309.
  • Recommended Follow-Up: Update the inaccurate student statuses in NSLDS and enhance controls over enrollment reporting processes.

Finding Text

2025-003 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program - Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 - Year Ended June 30, 2025 Criteria: Institutions are required to provide enrollment update responses to the Enrollment Reporting Roster File within fifteen days of receipt (34 CFR 685.309). Condition: We tested forty files and enrollment statuses were incorrectly reported to the National Student Loan Data System (NSLDS) for three students (7.5%). We consider this to be an instance of noncompliance relating to Special Tests and Provisions compliance requirement and is not a repeat finding. Statistical sampling was not used in making sample selections. Questioned Costs: N/A Cause and Effect: The condition was caused by the University starting a new program and due to not reporting students as three-quarter time status. The result is that the students’ enrollment statuses were reported to NSLDS inaccurately. Recommendation: We recommend the University update the student statuses in NSLDS and increase controls over enrollment reporting. Views of Responsible Officials: Management agrees with this Single Audit Finding and response is included in the Corrective Action Plan.

Corrective Action Plan

2025-003 - Student Financial Aid Cluster - (a) Federal Supplemental Educational Opportunity Grants (b) Federal Work Study Program (c) Federal Perkins Loan Program - Federal Capital Contributions (d) Federal Pell Grant Program (e) Federal Direct Student Loans (f) Teacher Education Assistance for College and Higher Education (TEACH), Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.038 (d) 84.063 (e) 84.268 (f) 84.379 - Year Ended June 30, 2025 Condition: We tested forty files and enrollment statuses were incorrectly reported to the National Student Loan Data System (NSLDS) for three students (7.5%). We consider this to be an instance of noncompliance relating to Special Tests and Provisions compliance requirement and is not a repeat finding. Statistical sampling was not used in making sample selections. Management Response: We agree with this finding. Corrective Action Plan: Review of new academic programs that allow graduate courses for undergraduate credit will be complete to ensure that enrollment is reported correctly. This specific case was for our MSAT program. The students involved were in their transition year from undergrad to grad. Graduate courses were not coded to report as undergrad towards full time status. Responsible Person: Registrar Implementation Date: January 2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1181361 2025-001
    Material Weakness Repeat
  • 1181362 2025-002
    Material Weakness Repeat
  • 1181363 2025-003
    Material Weakness Repeat
  • 1181364 2025-002
    Material Weakness Repeat
  • 1181365 2025-003
    Material Weakness Repeat
  • 1181366 2025-003
    Material Weakness Repeat
  • 1181367 2025-003
    Material Weakness Repeat
  • 1181368 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $9.95M
84.063 FEDERAL PELL GRANT PROGRAM $3.86M
84.038 FEDERAL PERKINS LOAN - FEDERAL CAPITAL CONTRIBUTIONS $517,003
84.031 HIGHER EDUCATION_INSTITUTIONAL AID $352,088
84.033 FEDERAL WORK-STUDY PROGRAM $276,890
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $154,076
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $3,772