Finding Text
Finding 2025-008 - U.S. Department of Education (ED), Student Financial Assistance Programs - NSLDS Enrollment (material weakness): Information on the federal program – Federal Pell Grant Program, FAL No. 84.063, June 30, 2025; Federal Supplemental Opportunity Grant Program, FAL No. 84.007, June 30, 2025; Federal Work-Study Program, FAL No. 84.033, June 30, 2025; Federal Direct Student Loan Program, FAL No. 84.268, June 30, 2025; Federal Teacher Education Assistance for College (TEACH), FAL No. 84.379, June 30, 2025 Criteria – The withdrawal status must be verified for withdrawn students. NSLDS Enrollment Maintenance 34 CFR 685.309(b), 682.610(c), 674.33(j). Condition – We observed that two (2) of the four (4) students tested were not in compliance with Enrollment Reporting. One (1) of the students did not have the withdrawn status reported. Cause – Timely reporting of withdrawn students is required throughout the award year. Effect – Not reporting withdrawal statuses timely affects the repayment of student loans. Questioned Costs – Unknown. Perspective – This is considered a systemic problem given the two (2) exceptions noted. Repeat Finding – No. Auditor's Recommendation – The institution must provide the NSLDS enrollment information for withdrawn students for the academic year and ensure enrollment status changes are reported within the regulatory timeline. Management’s Response – Management concurs with Finding 2025-008 related to NSLDS Enrollment Reporting for withdrawn students. The institution acknowledges that one (1) withdrawn student was not reported timely to NSLDS during the period tested, resulting in two (2) of the four (4) students reviewed not being in full compliance with federal enrollment reporting requirements under 34 CFR 685.309(b), 682.610(c), and 674.33(j). Upon identification of the issue, the institution conducted a review of enrollment reporting processes to confirm the nature of the error. Management determined that the exception resulted from a breakdown in communication between the Registrar’s Office and the Financial Aid Office regarding withdrawal notifications during the award year. Corrective actions have been initiated and include the following: • All previously unreported or incorrectly reported withdrawal statuses for the academic year have been reviewed and submitted to NSLDS. • Enrollment reporting procedures have been updated to formalize coordination between the Registrar’s Office and Financial Aid to ensure timely identification and reporting of enrollment status changes. • A secondary review process has been implemented prior to NSLDS submission to verify withdrawn student statuses. • Staff responsible for enrollment reporting have received refresher training on NSLDS requirements and regulatory timelines. Management expects these corrective actions to strengthen internal controls over enrollment reporting and ensure compliance with federal regulations moving forward. View of Responsible Officials – The College agrees with the finding. Responsible officials acknowledge the seriousness of this finding and recognize that timely and accurate NSLDS enrollment reporting is critical to the integrity of Title IV programs and the proper administration of student loan repayment obligations. The institution is committed to maintaining compliance with all federal student aid requirements and agrees that this issue represents a control weakness that required immediate attention. While the error affected a limited number of students, officials understand the potential systemic implications and have taken corrective measures accordingly. Responsible officials will continue to monitor enrollment reporting through periodic reconciliations and management oversight to ensure all enrollment status changes—including withdrawals—are reported accurately and within the prescribed regulatory timeframe. Management believes the corrective actions implemented will prevent recurrence of this issue and demonstrate the institution’s commitment to compliance and accountability.