Finding 1182639 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-25

AI Summary

  • Core Issue: The College failed to report student enrollment changes accurately and on time to the National Student Loan Data System (NSLDS), violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 682.610 and 2 CFR 200.303, which mandate accurate and timely reporting of student enrollment statuses.
  • Recommended Follow-Up: The College should review and improve its reporting processes to ensure timely and accurate submissions to NSLDS, as management has acknowledged the issue and is working on a corrective plan.

Finding Text

Federal Agency: US Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.007, 84.033, 84.268 Federal Award Identification Number and Year: P063P242037 - 2025, P007A243429 - 2025, P033A243429 - 2025, P268K252037 - 2025 Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Compliance, Other Matter • Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: 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. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The College did not properly report student enrollment changes for students who received federal student aid to the National Student Loan Data System (NSLDS). Questioned costs: None. Context: During our testing of 40 students, we identified 7 students with an effective date reported to NSLDS that did not align with institutional records and 6 students that were reported after the 60 day requirement. Cause: The College did not have proper procedures in place to verify students' status in NSLDS matched the institutions records accurately and reported timely. Effect: The College was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Repeat Finding: Yes, 2024-002 Recommendation: We recommend the College review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported accurately and timely. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.

Corrective Action Plan

Student Financial Assistance Cluster– Assistance Listing No. 84.063, 84.007, 84.033, 84.268 Recommendation: We recommend the College review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported accurately and timely. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned in response to finding: NEO will perform an internal audit of enrollment reports sent to the National Student Clearinghouse (NSC) monthly to ensure NSC is submitting records on behalf of NEO in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Amy Ishmael Planned completion date for corrective action plan: April 1, 2026 If the U.S. Department of Education has questions regarding this plan, please call Amy Ishmael at 918- 540-6212.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting Significant Deficiency

Other Findings in this Audit

  • 1182628 2025-001
    Material Weakness Repeat
  • 1182629 2025-002
    Material Weakness Repeat
  • 1182630 2025-003
    Material Weakness Repeat
  • 1182631 2025-001
    Material Weakness Repeat
  • 1182632 2025-002
    Material Weakness Repeat
  • 1182633 2025-003
    Material Weakness Repeat
  • 1182634 2025-001
    Material Weakness Repeat
  • 1182635 2025-002
    Material Weakness Repeat
  • 1182636 2025-003
    Material Weakness Repeat
  • 1182637 2025-001
    Material Weakness Repeat
  • 1182638 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $7.26M
84.268 FEDERAL DIRECT STUDENT LOANS $5.43M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $683,639
84.047 TRIO UPWARD BOUND $370,994
84.031 HIGHER EDUCATION INSTITUTIONAL AID $289,305
84.042 TRIO STUDENT SUPPORT SERVICES $251,908
84.033 FEDERAL WORK-STUDY PROGRAM $136,852
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $134,013
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $126,384
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $86,881
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $46,953
10.559 SUMMER FOOD SERVICE PROGRAM FOR CHILDREN $39,414
84.335 CHILD CARE ACCESS MEANS PARENTS IN SCHOOL $33,428
93.788 OPIOID STR $27,744
93.558 TEMPORARY ASSISTANCE FOR NEEDY FAMILIES $12,064
93.970 HEALTH PROFESSIONS RECRUITMENT PROGRAM FOR INDIANS $9,267