Finding 1186880 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394632
Organization: Prescott College, Inc. (AZ)

AI Summary

  • Core Issue: The College failed to report changes in student enrollment status to the NSLDS within the required timeframes, indicating a lack of internal controls.
  • Impacted Requirements: Compliance with 34 CFR 685.309, which mandates reporting within 30 or 60 days and ensuring accurate effective dates.
  • Recommended Follow-Up: The College should reassess and improve its procedures for timely and accurate NSLDS reporting to avoid future compliance issues.

Finding Text

National Student Loan Database System (NSLDS) Enrollment Reporting Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. Condition: During our testing of 40 students, we noted two students where the change in enrollment status was not reported within 60 days. Questioned costs: None Context: During our testing, it was noted the College does not have a process in place to ensure the timeliness and accuracy of NSLDS reporting. Cause: The College did not have a process in place to ensure the student who graduated or withdrew were reported timely and accurately. Effect: The College did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely and accurately. Repeat finding: Yes, 2024-002. Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

National Student Loan Database System (NSLDS) Enrollment Reporting Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Explanation of disagreement with audit finding: There is no disagreement with the auditfinding. Action taken in response to finding: The Registrar will re-evaluate policies, procedures and training materials to ensure timely and accurate reporting. Name(s) of the contact person(s) responsible for corrective action: Michele Peterson Planned completion date for corrective action plan: 03/31/26 If

Categories

Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1186876 2025-001
    Material Weakness Repeat
  • 1186877 2025-001
    Material Weakness Repeat
  • 1186878 2025-001
    Material Weakness Repeat
  • 1186879 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $11.79M
84.063 FEDERAL PELL GRANT PROGRAM $683,221
94.006 AMERICORPS STATE AND NATIONAL 94.006 $528,759
84.031 HIGHER EDUCATION INSTITUTIONAL AID $352,079
84.033 FEDERAL WORK-STUDY PROGRAM $124,177
94.013 AMERICORPS VOLUNTEERS IN SERVICE TO AMERICA 94.013 $85,797
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $72,805
15.637 MIGRATORY BIRD JOINT VENTURES $25,323
10.664 COOPERATIVE FORESTRY ASSISTANCE $19,834
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $8,488