Finding 1186674 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-25
Audit: 394371
Organization: Mount Mercy University (IA)

AI Summary

  • Core Issue: The University failed to report student enrollment statuses accurately and on time to the NSLDS, with discrepancies noted in 3 out of 40 cases.
  • Impacted Requirements: Compliance with 34 CFR 682.610, which mandates accurate reporting of enrollment status and timely certification every 60 days.
  • Recommended Follow-Up: The University should enhance its reporting procedures to ensure timely and accurate updates to NSLDS, addressing the identified deficiencies.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.038, 84.268, 84.033, 84.007, 84.063, 84.379, 93.264 Award Period: July 1, 2024 through June 30, 2025 Type of Finding:  Significant Deficiency in Internal Control Over Compliance  Other Matter 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 whether they receive aid from the institution. This includes the enrollment effective date and related enrollment status, which must be reported for both the Campus-Level and the Program-Level. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Condition: During our testing of the Direct Loan and Pell Grant programs, we selected a sample of 40 students to test for accuracy and timeliness of reporting student status changes to the National Student Loan Data System (NSLDS). During our testing, we noted that 1 out of 40 students did not have their enrollment status timely reported. We noted 1 out of 40 students had a discrepancy in Program-level enrollment status, and 1 out of 40 students had a discrepancy in enrollment effective date. In both instances the University’s records did not match what was reported to NSLDS. Questioned Costs: None reported Context: During our testing, we noted the University did not have proper procedures in place to verify the reports sent to NSLDS are timely and accurate. Cause: The University processes and controls did not ensure that student status changes were properly reported to NSLDS. The effective date should reflect the student's last date of attendance and academically-related activity. In addition, students’ enrollment status should be certified every 60 days and the program begin date should be the first day attended at the University. Effect: The NSLDS system is not updated with the correct student information, which can cause a student to not properly enter the repayment period. Repeat Finding: Yes, see finding 2024-001. Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Views of Responsible Officials: There is no disagreement with the audit finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is reviewing its enrollment reporting process in coordination with the Registrar’s Office to identify any potential issues affecting data transmission through the National Student Clearinghouse. As part of this review, the University is evaluating additional reconciliation and verification procedures to confirm that enrollment status data submitted to the Clearinghouse is accurately reflected in NSLDS. The University will continue to monitor enrollment status reporting on an ongoing basis to ensure compliance with federal reporting requirements. Name(s) of the contact person(s) responsible for corrective action: Mark Freed Planned completion date for corrective action plan: 06/30/2026

Categories

Student Financial Aid

Other Findings in this Audit

  • 1186666 2025-001
    Material Weakness Repeat
  • 1186667 2025-001
    Material Weakness Repeat
  • 1186668 2025-001
    Material Weakness Repeat
  • 1186669 2025-001
    Material Weakness Repeat
  • 1186670 2025-001
    Material Weakness Repeat
  • 1186671 2025-001
    Material Weakness Repeat
  • 1186672 2025-001
    Material Weakness Repeat
  • 1186673 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $2.19M
84.268 FEDERAL DIRECT STUDENT LOANS $1.20M
84.033 FEDERAL WORK-STUDY PROGRAM $171,603
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $76,723
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $72,589
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $61,767
93.264 NURSE FACULTY LOAN PROGRAM (NFLP) $52,569