Finding 1204975 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396648
Organization: Hospital Sisters Health System (IL)
Auditor: KPMG LLP

AI Summary

  • Core Issue: Institutions failed to report enrollment changes to NSLDS within the required 60 days, risking inaccurate financial aid eligibility.
  • Impacted Requirements: Compliance with Pell Grant and Direct Loan reporting regulations (34 CFR 690.83(b)(2), 34 CFR 685.309).
  • Recommended Follow-Up: Establish regular reviews of enrollment changes to ensure timely and accurate reporting moving forward.

Finding Text

Institutions are required to report enrollment information under the Pell Grant and the Direct Loan programs via the NSLDS (OMB No. 1845-0035) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process within 60 days of an enrollment status change. Three of five samples selected for testing were not submitted to NSLDS within 60 days of the enrollment status change. Management implemented a new enrollment reporting workflow in fall, 2024. The implementation resulted in a timing gap during which enrollment status changes were not submitted timely. Inaccurate reporting of status changes could result in student financial aid being awarded when the student is not eligible due to their enrollment status. The sample was not intended to be, and was not, a statistically valid sample. Management should implement consistent and regular review of student enrollment changes to ensure timely reporting.

Corrective Action Plan

The College has implemented a structured NSLDS enrollment reporting control to ensure updates are reported within 60 days to NSLDS, (OMB No. 1845-0035) (Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309; Perkins 34 CFR 674.19(f)). The Registrar’s Office, or a representative of, generates a Monthly status-change report, which is reviewed at the Student Affairs Operations meeting. Financial Aid reviews the list for Title IV impacts, and the Director of Financial Aid completes the NSLDS Enrollment Maintenance roster review and certification on a scheduled cadence (at least biweekly; weekly during peak periods). Each submission is documented with (1) the SONIS status-change report, (2) the NSLDS Enrollment Maintenance Report/roster file, and (3) dated evidence of review/approval and submission (email/Teams sign-off plus NSLDS submission history screenshot). Exceptions approaching 45 days are escalated to leadership for same-week certification

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 1204972 2025-001
    Material Weakness Repeat
  • 1204973 2025-001
    Material Weakness Repeat
  • 1204974 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
97.036 DISASTER GRANTS - PUBLIC ASSISTANCE (PRESIDENTIALLY DECLARED DISASTERS) $4.51M
84.268 FEDERAL DIRECT STUDENT LOANS $914,271
10.855 DISTANCE LEARNING AND TELEMEDICINE LOANS AND GRANTS $497,313
84.063 FEDERAL PELL GRANT PROGRAM $359,821
93.889 NATIONAL BIOTERRORISM HOSPITAL PREPAREDNESS PROGRAM $354,447
93.912 RURAL HEALTH CARE SERVICES OUTREACH, RURAL HEALTH NETWORK DEVELOPMENT AND SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT $248,834
93.994 MATERNAL AND CHILD HEALTH SERVICES BLOCK GRANT TO THE STATES $245,135
93.301 SMALL RURAL HOSPITAL IMPROVEMENT GRANT PROGRAM $12,337
93.395 CANCER TREATMENT RESEARCH $12,000
93.110 MATERNAL AND CHILD HEALTH FEDERAL CONSOLIDATED PROGRAMS $10,000
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $9,344
84.033 FEDERAL WORK-STUDY PROGRAM $5,546
93.394 CANCER DETECTION AND DIAGNOSIS RESEARCH $3,000
93.658 FOSTER CARE TITLE IV-E $2,194
93.778 MEDICAL ASSISTANCE PROGRAM $1,168
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $1,159
84.181 SPECIAL EDUCATION-GRANTS FOR INFANTS AND FAMILIES $927
93.853 EXTRAMURAL RESEARCH PROGRAMS IN THE NEUROSCIENCES AND NEUROLOGICAL DISORDERS $588
93.667 SOCIAL SERVICES BLOCK GRANT $538
93.399 CANCER CONTROL $500
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $88
93.767 CHILDREN'S HEALTH INSURANCE PROGRAM $67