Finding 1205160 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396825
Organization: Beacon College, Inc. (FL)

AI Summary

  • Core Issue: The College failed to report certain students' enrollment information accurately and on time to the NSLDS.
  • Impacted Requirements: Reporting must occur within 30 days of enrollment status changes, with necessary corrections made within 10 days for any errors.
  • Recommended Follow-Up: The College should review and improve its policies and procedures for timely reporting to ensure compliance with federal regulations.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.268, 84.063 Federal Award Identification Number and Year: Various Award Period: 7/1/24-6/30/25 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: Per U.S. Department of Education (ED) regulations, all schools participating (or approved to participate) in the Federal Student Aid programs must have an arrangement to report student enrollment data to the NSLDS through a roster file. The school is required to report enrollment status at both the school and program level. The school is required to report changes in the student’s enrollment status, the effective date of the status and an anticipated completion date. An academic program is defined as the combination of the school’s Office of Postsecondary Education Identification (OPEID) number and the program’s Classification of Instructional Program (CIP) code, credential level, and published program length. ED requires the University to report changes in enrollment status and indicate the date that the changes occurred (34 CFR 685.309). Changes in enrollment status must be reported within 30 days. However, if a roster file is expected within 60 days, you may provide the date on that roster file. 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. ED requires the University to report changes in enrollment status within 30 or 60 days that the University determined the changes occurred (34 CFR 682.610). Condition: Certain students’ enrollment information was not reported accurately or timely to the NSLDS. Questioned costs: None. Context: During our testing, we noted 3 students out of a sample of 9 students tested were reported outside the required timeframe. Cause: The College’s process in place for timely reporting and updating effective dates within the system were not functioning properly. Effect: Inaccurate reporting to NSLDS can impact when students enter repayment periods or affect their interest rates. Repeat Finding: No. Recommendation: We recommend the College evaluate its policies and procedures around reporting student status changes to NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Recommendation: We recommend the College evaluate its policies and procedures around reporting student status changes to NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action planned/taken in response to finding: Internal Control Enhancement: The Registrar will update the department’s internal control procedures to include a scheduled monitoring process to ensure that all enrollment status changes are reviewed and reported to NSLDS within 60 days. The procedure will also include a verification step to document when a student qualifies under the limited exception policy, ensuring appropriate justification is maintained for any enrollment updates reported outside the 60-day timeframe. Periodic reconciliation between the Student Information System and NSLDS reporting records will be conducted to confirm that all enrollment changes are transmitted within the required reporting period. Name(s) of the contact person(s) responsible for corrective action: Carrie Santaw, Bursar Planned completion date for corrective action plan: April 1, 2026

Categories

Reporting Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 1205157 2025-004
    Material Weakness Repeat
  • 1205158 2025-002
    Material Weakness Repeat
  • 1205159 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.07M
84.063 FEDERAL PELL GRANT PROGRAM $1.00M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $136,956
84.033 FEDERAL WORK-STUDY PROGRAM $88,534