Finding 1216517 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-03
Audit: 402999
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: Enrollment status reported to the National Student Clearing House was inaccurate in 14 cases, affecting compliance with federal financial assistance requirements.
  • Impacted Requirements: Timely and accurate reporting of student enrollment status is essential for determining eligibility for federal loans and grants.
  • Recommended Follow-Up: The University should establish controls to ensure accurate processing of student status changes to prevent future discrepancies.

Finding Text

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.268 Federal Direct Student Loans - 2024/2025 P268K251430 Federal Financial Assistance Listing #84.063 Federal Pell Grant Program - 2024/2025 P063P241430 Special Tests & Provisions: Enrollment Reporting Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Criteria: A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to federal direct loan program loan holds by Education Department. Reporting in a timely and accurate manner is critical for effective management of the programs. An institution must submit student status changes to the National Student Clearing House, no later than 60 days after the Institution’s Determination Date. In addition, the enrollment effective date reported to the National Student Clearing House should be the same as the student’s last date of attendance for withdrawals. Condition: Fourteen instances were noted where enrollment status reported to the National Student Clearing House was not the same as the student’s actual enrollment status. Cause: The University changed the required credit hours for graduate students to be considered full time. The old requirement was used in the calculation of enrollment status to be submitted to National Student Clearing House instead of the new requirement. The University also did not include the intersession course in its calculation of enrollment status for the Spring semester to be submitted to National Student Clearing House. Effect: The enrollment status reported to the National Student Clearing House was not reflective of the student’s actual enrollment status. Questioned Costs: None Context/Sampling: Non-statistical sampling was performed. Fourteen instances were identified in 60 students tested. Over 250 students had status changes during the year. Repeat Finding from Prior Years: No Recommendation: The University should implement controls to ensure student status changes are correctly processed in the National Student Clearing House. Views of Responsible Officials: Management agrees. Management’s complete response can be found in the separately issued corrective action plan.

Corrective Action Plan

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing/CFDA #84.268 Federal Direct Student Loans - 2024/2025 P268K211430 Federal Financial Assistance Listing/CFDA #84.063 Federal Pell Grant Program - 2024/2025 P063P201430 Special Tests & Provisions: Enrollment Reporting Material Weakness in Internal Control over Compliance and Noncompliance not Considered Material Finding Summary: Fourteen instances were identified where the enrollment status reported to the National Student Clearing House did not match the student’s actual enrollment status. Responsible Individuals: Robert Hoover, Director of Financial Aid and Kristi Bagstad, Registrar Corrective Action Plan: The University will strengthen controls over enrollment reporting by implementing a reconciliation process that includes sampling of enrollment statuses prior to submission. In addition, procedures will be updated to ensure reports are submitted within required timeframes. A secondary review of enrollment files will be conducted prior to submission, and staff will receive training on reporting requirements. Periodic reviews will be performed to monitor ongoing compliance and accuracy. Anticipated Completion Date: August 1, 2026/ongoing

Categories

Student Financial Aid Special Tests & Provisions Eligibility Material Weakness Reporting

Other Findings in this Audit

  • 1216512 2025-002
    Material Weakness Repeat
  • 1216513 2025-002
    Material Weakness Repeat
  • 1216514 2025-002
    Material Weakness Repeat
  • 1216515 2025-003
    Material Weakness Repeat
  • 1216516 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $2.57M
84.063 FEDERAL PELL GRANT PROGRAM $2.02M
84.031 HIGHER EDUCATION INSTITUTIONAL AID $896,268
93.364 NURSING STUDENT LOANS $253,484
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $190,668
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $119,660
84.033 FEDERAL WORK-STUDY PROGRAM $82,890
93.264 NURSE FACULTY LOAN PROGRAM (NFLP) $71,518
97.008 NON-PROFIT SECURITY PROGRAM $50,293
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088