Finding 1182183 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393570
Organization: University of Mount Olive, Inc. (NC)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University inaccurately reported significant enrollment data for students in both the Program and Campus levels, failing to meet required reporting timelines.
  • Impacted Requirements: Compliance with enrollment reporting under Pell Grant and Direct Loan programs, specifically the need to certify enrollment every 60 days.
  • Recommended Follow-Up: Enhance internal controls and procedures for enrollment reporting to ensure accurate and timely submissions to NSLDS.

Finding Text

Federal Program Information: Pell Grant Program (ALN 84.063), Direct Student Loans (ALN 84.268) Criteria or Specific Requirement: N. Special Tests and Provisions – Enrollment Reporting – Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (FFEL) loan programs via the National Student Loan Data System (NSLDS) (OMB No. 1845-0035). Although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. There are two categories of enrollment information, “Campus Level” and “Program Level,” each with separate record types requiring accurate reporting. At a minimum, institutions are required to certify enrollment every 60 days or every other month. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: Program Level: Significant data elements were inaccurately reported for certain students. Campus Level: Significant data elements were inaccurately reported for certain students and were not submitted within the required timeframe. Cause: Administrative oversight and insufficient internal control. Effect or Potential Effect: The University was not in compliance with the enrollment reporting requirements. Questioned Costs: None. Context: For 12 of 40 program level status changes tested, the University did not accurately report one or more significant data elements to NSLDS. For 2 of 40 campus level status changes tested, the University did not accurately report one or more significant data elements to NSLDS and enrollment was not certified within the required timeframe. Identification as a Repeat Finding: There was one similar finding identified in the prior year. See finding 2024-003. Recommendation: We recommend the University enhance its procedures and internal controls over enrollment reporting to ensure students’ enrollment statuses are accurately reported to NSLDS. Views of Responsible Officials: Financial Aid has generated a report specifically for the Registrar’s Office that indicates enrollment plans for students who stop attending or withdraw from all courses for a single semester. The Registrar’s Office will be using this report for reporting enrollment status changes for students via NSLDS.

Corrective Action Plan

Finding 2025-004 Name of Responsible Individuals: Mrs. Tiffany Grandy, Assistant Director of Financial Aid, Mr. Jared Peterson, Financial Aid Counselor, Mrs. Terri Grice, Associate Registrar, and Mrs. Vicky Warrick, Registrar Corrective Action: As a result of Audit Finding 2025-004, Financial Aid has generated a report specifically for the Registrar’s Office that indicates enrollment plans for students who stop attending or withdraw from all courses for a single semester. The Registrar’s Office will be using this report for reporting enrollment status changes for students via NSLDS. Anticipated Completion Date: March 19, 2026

Categories

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

Other Findings in this Audit

  • 1182179 2025-001
    Material Weakness Repeat
  • 1182180 2025-002
    Material Weakness Repeat
  • 1182181 2025-003
    Material Weakness Repeat
  • 1182182 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.85M
84.063 FEDERAL PELL GRANT PROGRAM $6.22M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $165,734
84.033 FEDERAL WORK-STUDY PROGRAM $131,064