Finding 1205214 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 396879
Organization: McKendree University (IL)

AI Summary

  • Core Issue: The University failed to report student enrollment changes to the NSLDS on time, violating federal regulations.
  • Impacted Requirements: Enrollment reporting must occur within 30 days for changes and 60 days for roster files, as per federal guidelines.
  • Recommended Follow-Up: The University should improve its monitoring controls and review processes to ensure timely reporting of enrollment changes.

Finding Text

Information on the Federal Program - Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2024-2025 Criteria or Specific Requirement - Special Tests and Provisions - Enrollment Reporting (Pell 34 CFR Section 690.83(b)(2); FDL, 34 CFR Section 685.309) Condition - Federal regulations provide that the University is responsible for notifying the National Student Loan Data System (“NSLDS”) of changes in enrollment within 30 days or on an Enrollment Reporting roster file within 60 days. The University’s internal control system did not prevent certain late or missed changes requiring reporting. Cause - The University's processes did not ensure status changes were reported timely. Effect - The University may not be able to timely detect when students are not being included within the Enrollment Reporting roster which could result in the NSLDS not being properly notified of student enrollment changes for Direct Loan and Pell recipients in accordance with federal regulations. Questioned Costs - None. Context - Out of a population of 346 student enrollment status changes requiring NSLDS notification, a sample of 25 student enrollment changes were selected for testing. 2 of the status changes had deviations from reporting requirements. Our sample was not, and was not intended to be, statistically valid. Identification as a Repeat Finding - Not applicable. Recommendation - We recommend the University evaluate controls around monitoring enrollment reporting to determine changes, either on the electronic processes or review processes, that should be made to properly capture enrollment status changes on a timely basis and to properly monitor its third-party service provider for timely reporting as necessary. Views of Responsible Officials and Planned Corrective Action - Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Corrective Action Plan

Student Financial Assistance Cluster Federal Pell Grant Program - Assistance Listing No. 84.063 Federal Direct Loans - Assistance Listing No. 84.268 Recommendation: We recommend the University evaluate controls around monitoring enrollment reporting to determine changes, either on the electronic processes or review processes, that should be made to properly capture enrollment status changes on a timely basis and to properly monitor its third-party service provider for timely reporting as necessary. Planned corrective action: Processes will be reviewed and updated to ensure submissions are being reported timely and accurately Name(s) of the contact person(s) responsible for corrective action: Patrick Michael, Director of Financial Aid If the United States Department of Education has questions regarding this plan, please call Shari Keffer, Vice President for Administration & Finance at 618-537-6838.

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1205213 2025-001
    Material Weakness Repeat
  • 1205215 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $11.61M
84.063 FEDERAL PELL GRANT PROGRAM $4.25M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $512,325
84.033 FEDERAL WORK-STUDY PROGRAM $151,751
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $101,310
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $63,492