Finding 1205562 (2025-005)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-31
Audit: 397245
Organization: The Shaw University, Inc. (NC)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to accurately and timely report student enrollment status changes to the NSLDS, affecting compliance with federal requirements.
  • Impacted Requirements: Enrollment reporting must be completed within 60 days for changes like graduation or withdrawal, with accurate data for both Campus-Level and Program-Level Records.
  • Recommended Follow-Up: Enhance internal controls and establish formal policies to ensure accurate and timely reporting to the NSLDS, addressing repeat compliance issues.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN: 84.063) and Federal Direct Student Loans (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions - Enrollment Reporting: The University is required to update students’ statuses on the National Student Loans Data System (“NSLDS”) website if they graduate, withdraw or have an increase/decrease in attendance level during the year within 60 days of the date the University becomes aware of the change in enrollment status. There are two categories of enrollment information: “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. Institutions are responsible for accurately reporting the significant data elements under the Campus-Level Record and Program-Level Record that ED considers high risk. Additionally, institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. As with any school/servicer arrangement for the administration of the Title IV programs, if the school uses a third party to meet the NSLDS enrollment reporting requirements, it is the school that must ensure that enrollment information is submitted timely, accurately, and completely. Condition: The University did not accurately report certain significant data elements to the NSLDS website for certain students who graduated, withdrew, or had an increase/decrease in attendance level during the year. Cause: Insufficient administrative oversight and internal controls with respect to enrollment reporting compliance requirements. Effect or Potential Effect: The University is not in compliance with enrollment reporting compliance requirements. Failure to promptly report accurate and timely changes in enrollment status may adversely impact the repayment status for student loan borrowers. Questioned Costs: None. Context: We noted the following exceptions during our testing: • For 9 of 40 students sampled whose status changed during the year, the University failed to accurately report all significant data elements under the Campus-Level Record. • For 13 of 40 students sampled whose status changed during the year, the University failed to submit the Campus-Level Record within the required timeframe. • For 5 of 40 students sampled whose status changed during the year, the University failed to accurately report all significant data elements under the Program-Level Record in a timely notification to the NSLDS website. Identification as a Repeat Finding: This is a repeat finding from prior year. This was reported as Finding 2024-008 in the prior year schedule of findings and questioned costs. Recommendation: We recommend that the University enhance its internal controls and implement formal policies and procedures over the applicable compliance requirements to ensure that all status changes are submitted accurately to the NSLDS website within the required timeframe. Views of Responsible Officials: The University concurs with this finding. Shaw University acknowledges the finding regarding variances between institutional records and the status reported in NSLDS. For students 1-3 listed for campus enrollment details, the students withdrew then subsequently re-enrolled. The University, to date has had static to confer degrees which do not coincide with the required timeframe of NSLDS reporting. The University will change degree conferral dates to better coincide with timely NSLDS reporting. Management will continue to monitor this process to ensure ongoing compliance.

Corrective Action Plan

Name of Responsible Individual: Vice President of Enrollment Management (Dr. Stacey Sowell), University Registrar (Charee Ellison) Corrective Action: The University concurs with this finding. Shaw University acknowledges the finding regarding variances between institutional records and the status reported in NSLDS. For students 1-3 listed for campus enrollment details, the students withdrew then subsequently re-enrolled. The University, to date has had static to confer degrees which do not coincide with the required timeframe of NSLDS reporting. The University will change degree conferral dates to better coincide with timely NSLDS reporting. Management will continue to monitor this process to ensure ongoing compliance. Anticipated Completion Date: May 15, 2026

Categories

Student Financial Aid Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 1205547 2025-001
    Material Weakness Repeat
  • 1205548 2025-001
    Material Weakness Repeat
  • 1205549 2025-001
    Material Weakness Repeat
  • 1205550 2025-002
    Material Weakness Repeat
  • 1205551 2025-002
    Material Weakness Repeat
  • 1205552 2025-002
    Material Weakness Repeat
  • 1205553 2025-002
    Material Weakness Repeat
  • 1205554 2025-003
    Material Weakness Repeat
  • 1205555 2025-003
    Material Weakness Repeat
  • 1205556 2025-003
    Material Weakness Repeat
  • 1205557 2025-003
    Material Weakness Repeat
  • 1205558 2025-004
    Material Weakness Repeat
  • 1205559 2025-004
    Material Weakness Repeat
  • 1205560 2025-004
    Material Weakness Repeat
  • 1205561 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $6.20M
84.063 FEDERAL PELL GRANT PROGRAM $3.92M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $3.07M
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $1.75M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $999,197
12.630 Acquisition of Automated Instrumentation to Enhance Multidisiplinary Resarch, Education and Training Capabilities at Shaw University $589,479
84.033 FEDERAL WORK-STUDY PROGRAM $270,155
84.120 Biotech CONNECT: Academic - Business Partnerships to Diversify North Carolina's Workforce $119,419
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $89,652
93.172 HUMAN GENOME RESEARCH $74,929
11.802 MBDA SPECIALTY CENTER PROGRAM $56,180
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $48,861
15.904 HISTORIC PRESERVATION FUND GRANTS-IN-AID $48,469
15.932 PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS). $41,131
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $21,815
45.301 MUSEUMS FOR AMERICA $11,001
45.309 MUSEUM GRANTS FOR AFRICAN AMERICAN HISTORY AND CULTURE $7,945