Finding 1221726 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-06-30
Audit: 405985
Organization: Newberry College (SC)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The College failed to report enrollment information to NSLDS accurately and on time.
  • Impacted Requirements: Compliance with 34 CFR 690.83(b) and 34 CFR 685.309 is necessary for accurate student loan reporting.
  • Recommended Follow-Up: Implement a system for timely reporting of withdrawn students, conduct periodic reconciliations, and collaborate with NSC to address discrepancies.

Finding Text

Enrollment Reporting to NSLDS Material Weakness DEPARTMENT OF EDUCATION ALN #: 84.268—Federal Direct Student Loans and 84.063—Federal Pell Grant Program Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not report enrollment information to the National Student Loan Data System (NSLDS) in a timely and accurate manner. Criteria: 34 CFR 690.83(b) and 34 CFR 685.309 Questioned Costs: $0 Context: Out of 70 students tested, 7 students were not reported accurately to NSLDS. Five of these students showed "No Record Found," and the remaining 2 students did not have the proper enrollment status reported based on the student's transcripts. Cause: The registrar was not aware that there were discrepancies between the reporting done through the National Student Clearinghouse and the National Student Loan Data System. Effect: Inaccurate reporting can impact a student's loan grace period in school deferment eligibility, beginning loan repayments, appropriate interest charges, etc. Identification as repeat finding, if applicable: 2024-002 and 2023-007 Recommendation: We recommend the College put a system in place to ensure that withdrawn students are reported as withdrawn in NSLDS in a timely manner. We also recommend that the College complete reconciliations of enrollment status periodically and complete spot checks of enrollment statuses to NSLDS regularly. We also recommend that the College work with NSC to resolve issues with students with No Record Found. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Enrollment Reporting to NSLDS Planned Corrective Action: Management acknowledges the audit finding regarding untimely and inaccurate reporting of enrollment information to the National Student Loan Data System (NSLDS). The issue was primarily due to a lack of awareness regarding discrepancies between reporting through the National Student Clearinghouse to the NSLDS, as well as complications following the College’s recent upgrade to Jenzabar One (J1). After the upgrade, certain internal reports did not function as expected, and resolving these reporting issues required additional time and coordination between the Director of Institutional Research (IR) and the Registrar. The Director of IR has continued to work in coordination with the Registrar and the Assistant Vice President (AVP) for Financial Aid to ensure accurate and timely reporting to both NSLDS and the Clearinghouse. The Director of IR now provides biweekly status reports to the Vice President for Administration to support ongoing oversight and accountability. Person Responsible for Corrective Action Plan: Kristy Parker, Registrar Anticipated Date of Completion: June 30, 2026

Categories

Student Financial Aid Reporting Eligibility Material Weakness

Other Findings in this Audit

  • 1221725 2025-003
    Material Weakness Repeat
  • 1221727 2025-004
    Material Weakness Repeat
  • 1221728 2025-004
    Material Weakness Repeat
  • 1221729 2025-005
    Material Weakness Repeat
  • 1221730 2025-005
    Material Weakness Repeat
  • 1221731 2025-006
    Material Weakness Repeat
  • 1221732 2025-006
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
10.766 COMMUNITY FACILITIES LOANS AND GRANTS $29.97M
84.268 FEDERAL DIRECT STUDENT LOANS $11.54M
84.063 FEDERAL PELL GRANT PROGRAM $5.60M
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $503,965
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $116,601
84.033 FEDERAL WORK-STUDY PROGRAM $97,788
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088