Finding 1203006 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396272
Organization: Lake Michigan College (MI)

AI Summary

  • Core Issue: The College failed to update student enrollment information for graduates in Fall 2024, leading to inaccurate reporting to NSLDS.
  • Impacted Requirements: The College must report enrollment status changes within 60 days, as mandated by federal regulations (34 CFR 685.309).
  • Recommended Follow-Up: Implement a review process for NSLDS submissions to ensure accuracy, including tracking file receipts and reconciling them with submissions.

Finding Text

Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268); Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year - Various Pass through Entity - None Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - The College has 60 days from the date of the College determines an enrollment status change to report to the National Student Loan Data System (NSLDS). The enrollment reporting must be updated for changes in the data elements for the campus record and program record and submitted electronically through the batch method, spreadsheet submittal, or the NSLDS website (34 CFR 685.309). Condition - The College did not update the student enrollment information for any of the students graduating in Fall of 2024. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - N/A Identification of How Questioned Costs Were Computed - None Context - The process for submitting the enrollment status change includes using the National Student Clearing House, a third party, which ultimately submits the status changes to NSLDS on behalf of the College. The submission of graduated students was returned to the College with a notice of error and was not transmitted to NSLDS. The College never resubmitted the graduates to NSLDS for proper enrollment status. Cause and Effect - The College did not have formal procedures to verify that the National Student Clearing House has accurately reported the data provided by the College to NSLDS resulting in inappropriate enrollment status reported to NSLDS. Recommendation - The College should consider implementing a process to review all submissions to NSLDS to ensure the required reporting elements are submitted by the use of the third party. Views of Responsible Officials and Corrective Action Plan - Lake Michigan College understands the significance of accurately reporting student enrollment statuses and will implement enhanced oversight controls. This includes the creation of a log that now documents file “receipts” from the National Student Clearinghouse. These report receipts are then reconciled to file submissions to ensure all files were received. Additionally, we have implemented a more overarching review that ensures all files are adequately processed by the National Clearinghouse.

Corrective Action Plan

Finding Number: 2025-001 Condition: The College did not update the student enrollment information for any of the students graduating in Fall of 2024. Planned Corrective Action: Lake Michigan College understands the significance of accurately reporting student enrollment statuses and will implement enhanced oversight controls. This includes the creation of a log that now documents file “receipts” from the National Student Clearinghouse. These report receipts are then reconciled to file submissions to ensure all files were received. Additionally, we have implemented a more overarching review that ensures all files are adequately processed by the National Clearinghouse. It is important to note the institution has corrected the files noted in the audit finding and all student records have now been updated to reflect accurate graduation and enrollment statuses. Contact person responsible for corrective action: Carrie Beukelman, Registrar Anticipated Completion Date: 03/01/2026

Categories

Student Financial Aid Material Weakness Reporting

Other Findings in this Audit

  • 1203003 2025-001
    Material Weakness Repeat
  • 1203004 2025-001
    Material Weakness Repeat
  • 1203005 2025-001
    Material Weakness Repeat
  • 1203007 2025-002
    Material Weakness Repeat
  • 1203008 2025-002
    Material Weakness Repeat
  • 1203009 2025-002
    Material Weakness Repeat
  • 1203010 2025-002
    Material Weakness Repeat
  • 1203011 2025-002
    Material Weakness Repeat
  • 1203012 2025-002
    Material Weakness Repeat
  • 1203013 2025-002
    Material Weakness Repeat
  • 1203014 2025-003
    Material Weakness Repeat
  • 1203015 2025-003
    Material Weakness Repeat
  • 1203016 2025-003
    Material Weakness Repeat
  • 1203017 2025-003
    Material Weakness Repeat
  • 1203018 2025-003
    Material Weakness Repeat
  • 1203019 2025-003
    Material Weakness Repeat
  • 1203020 2025-004
    Material Weakness Repeat
  • 1203021 2025-004
    Material Weakness Repeat
  • 1203022 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $5.45M
84.268 FEDERAL DIRECT STUDENT LOANS $1.53M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $405,730
21.027 COVID-19 - CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $401,551
84.066 TRIO EDUCATIONAL OPPORTUNITY CENTERS $334,687
84.042 TRIO STUDENT SUPPORT SERVICES $247,451
84.047 TRIO UPWARD BOUND $226,422
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $138,069
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $81,416
84.033 FEDERAL WORK-STUDY PROGRAM $63,617
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $9,246