Finding 1191768 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-29
Audit: 395574
Organization: Gwynedd Mercy University (PA)

AI Summary

  • Core Issue: Enrollment statuses for 25 students were reported incorrectly or not timely to the NSLDS, affecting Title IV loan records.
  • Impacted Requirements: Compliance with 34 CFR 685.309(b) regarding timely updates and accurate reporting of student enrollment statuses.
  • Recommended Follow-Up: Implement policies to verify enrollment status changes and effective dates are reported accurately and on time, and enhance internal tracking of these changes.

Finding Text

Federal Program - Federal Direct Student Loan Program, Federal Pell Grant Program Federal Agency - U.S. Department of Education Pass-Through Entity - Not Applicable Assistance Listing Number – 84.268, 84.063 Award Number - P3U1S9SVCB65, P3U1S9SVCB65 Federal Award Year - June 30, 2025 Criteria: 34 CFR 685.309(b) states that upon receipt of an enrollment report from the Secretary, a school must update all information included in the report and return the report to the Secretary in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended. Condition/Context: For 25 of the 25 students tested, their enrollment status was reported incorrectly and/or not in a timely or accurate manner to the National Student Loan Database System (NSLDS). For seven students that graduated, their change in status was not submitted to the NSLDS. For fourteen students their change in status was not reported within 60 days. For eight students tested NSLDS student status reported did not agree to the institutional record. For eighteen students tested NSLDS effective change in status date did not agree to the institutional record. The sample was not a statistically valid sample. Cause: The University utilizes a third-party servicer to facilitate student enrollment reporting. The third-party servicer report information was not accurate and complete based on the institution records. Third-party servicer submissions were not being transferred to NSLDS on a timely basis. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by the schools. If an institution does not review, update, and verify student enrollment statuses, effective dates of the enrollment status and other information, then the Title IV student loan records will be inaccurate, which impacts student loan repayments. Questioned Costs: None. Recommendation: It is recommended that policies and procedures are put in place to verify that the correct effective dates and status changes are reported to NSLDS within required time frames, as well as create accurate reports internally to track all students’ whose status changed and verify against the roster submitted to NSLDS. This could include a review of withdrawal or graduation dates compared to the effective dates reported to NSLDS to make sure they are accurate. View of Responsible Officials: The Registrar's Office is working with the National Student Clearinghouse (NSC) administrator to address concerns with submitted reports being updated in NSLDS. Each error was corrected within the system. Going forward, the Registrar's Office is working with its Information Technology group on updated internal reports to track and review the status changes and start dates to ensure they are being accurately reported.

Corrective Action Plan

Action Taken: The Registrar's Office is working with the NSC administrator to address concerns with submitted reports being updated in NSLDS. Each error was corrected within the system. Going forward, the Registrar's Office is working with IT on updated internal reports to track and review the status changes and start dates to ensure they are being accurately reported. Responsible Individual for Corrective Action: Registrar - Jennifer Melon Anticipated Completion Date: June 30, 2026 If there are any questions regarding this corrective action plan, please call Jennifer Ginnetti, Sr. Associate VP/ Deputy CFO, at 215-641-5506 or email Ginnetti.j@gmercyu.edu.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1191767 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $16.30M
84.063 FEDERAL PELL GRANT PROGRAM $2.52M
93.364 NURSING STUDENT LOANS $760,340
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $234,602
84.033 FEDERAL WORK-STUDY PROGRAM $141,840
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $89,753
84.407 TRANSITION PROGRAMS FOR STUDENTS WITH INTELLECTUAL DISABILITIES INTO HIGHER EDUCATION $42,569
19.510 U.S. REFUGEE ADMISSIONS PROGRAM $1,318