Finding 1201461 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396008
Organization: Edgewood College, Inc. (WI)

AI Summary

  • Core Issue: The College failed to report changes in student status to NSLDS on time for 2 out of 50 sampled students.
  • Impacted Requirements: Internal controls over compliance for enrollment reporting were ineffective, leading to noncompliance with federal requirements.
  • Recommended Follow-Up: The College should enhance internal controls to ensure timely reporting of student status changes to NSLDS.

Finding Text

Agencies: U.S Department of Education Federal Assistance Listing Number: 84.038, 84.063, 84.007, 84.033, 84.268, and 84.379 Programs: Student financial assistance cluster Criteria: The College is responsible for designing, implementing, and maintaining internal control over compliance for special tests and provisions and for accurately reporting significant data elements under the Campus-Level and Program-Level records within the National Student Loan Data System (NSLDS) that the Department of Education (ED) considers high risk. Condition: Management's review of the enrollment reporting did not prevent and detect that 2 student's change status was not reported to NSLDS within the required timeframe. Questioned Costs: The amount of questioned costs could not be determined. Context: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We found another instance of a student’s information not reported timely, however management did eventually detect and correct the error outside the required timeframe. The sample was not statistically valid. Cause: The College's internal control over compliance for enrollment and special tests were not operating effectively which led to noncompliance. Effect: The change status for 2 of 50 students selected for the sample were not reported timely within NSLDS however internal controls over compliance did detect and correct the errors. Recommendation: We recommend the College review internal controls over enrollment reporting to ensure student change status changes get reported to NSLDS timely. Management Response: Management agrees and has implemented necessary procedures/controls to ensure the College is in compliance with enrollment requirements. Management has corrected the student’s change status not previously reported.

Corrective Action Plan

Condition: We selected a sample of 25 students that had a change in status. One of the students information was not reported to NSLDS timely, however the College’s controls did detect the error outside the required timeframe, and the error was corrected. We expanded our sample to 50 students. We found another instance of a student’s information not reported timely, however management did eventually detect and correct the error outside the required timeframe. Corrective Action planned: Management agrees and has implemented necessary procedures/controls to ensure the College is in compliance with enrollment requirements. Management has corrected the student’s change status not previously reported. Name(s) of Contact Person(s) Responsible for Corrective Action: {Jennifer Young, Director of Financial Aid and Edgewood Central, and Katelyn Peters, Student Service Specialist.} Anticipated Completion Date: Has already began as of the audit. Staff turnover occurred, have replaced the Student Service Specialist position - now have second point on NSC reporting.

Categories

Special Tests & Provisions Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1201456 2025-001
    Material Weakness Repeat
  • 1201457 2025-001
    Material Weakness Repeat
  • 1201458 2025-001
    Material Weakness Repeat
  • 1201459 2025-001
    Material Weakness Repeat
  • 1201460 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.26M
84.063 FEDERAL PELL GRANT PROGRAM $2.15M
84.033 FEDERAL WORK-STUDY PROGRAM $209,069
83.038 FEDERAL PERKINS LOAN PROGRAM $181,078
82.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $158,300
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $29,233