Finding 1228755 (2026-001)

Material Weakness Repeat Finding
Requirement
L
Questioned Costs
-
Year
2026
Accepted
2026-09-04
Audit: 410415
Auditor: 35-1178661

AI Summary

  • Core Issue: The University failed to report changes in student enrollment status to NSLDS on time, affecting 50 students' records.
  • Impacted Requirements: Reporting must occur within 30 days for certain changes, as per federal regulations and NSLDS guidelines.
  • Recommended Follow-Up: Strengthen enrollment reporting procedures and implement supervisory reviews to ensure timely and accurate reporting to NSLDS.

Finding Text

FTimely Enrollment Reporting Information on the Federal Program: Federal Direct Student Loan Program, AL Number 84.268 (Student Financial Aid Cluster) – U.S. Department of Education Criteria: Per 34 CFR 685.309(b)(2)(i), unless the school expects to submit its next enrollment report within 60 days, the school must notify the lender or the guaranty agency within 30 days if it discovers that a student who received a loan either did not enroll or ceased to be enrolled on at least a half-time basis. Per National Student Loan Data System (NSLDS) Enrollment Reporting Guide, Chapter 5 section 1, timely reporting of changes ensures accuracy of student information. Such changes may include changes in campus-level and/or program-level enrollment status. Status of “A” refers to a leave of absence. Condition: The University did not timely report certain changes in student enrollment status to NSLDS. Out of 184 students that withdrew during the fiscal year, 2 did not have their change in enrollment status reported to NSLDS within 60 days. For all students who went on a Regular Academic Hiatus during the Spring 2025 semester, 48 in total, a change in enrollment status was not reported to NSLDS within 60 days. Questioned Cost: $0 Cause: The University did not have effective internal controls in place to ensure that changes in enrollment status due to Regular Academic Hiatus or withdrawal were accurately and timely reported to NSLDS. Effect: Enrollment statuses for affected students were inaccurate or not timely reported to NSLDS. As a result, NSLDS did not contain accurate and timely information regarding the affected students’ enrollment status during the applicable periods. Recommendation: We recommend that the University strengthen its enrollment reporting procedures and related review controls to ensure that all changes in student enrollment status that result in students ceasing enrollment on at least a half-time basis, are accurately reported to NSLDS within required timeframes. Procedures should also include backup responsibilities and supervisory review when key personnel are unavailable. Views of responsible officials and planned corrective actions: The University concurs with this finding and will implement oversight procedures to ensure the enrollment statuses for all students are reported timely to the National Loan Student Database System.

Corrective Action Plan

Enrollment Reporting Finding: The enrollment statuses in the National Student Loan Data System for students who took a Regular Academic Hiatus were incorrect during the time of their hiatus. Corrective Actions Taken or Planned: FNU changed its reported enrollment status for all students on a regular Academic Hiatus (AH) from “Enrolled” to “Leave of Absence (LOA)” in the National Student Clearinghouse (NSC). Note that both status types indicate an enrolled status per NSC. Also, FNU revised internal procedures to ensure that students on a regular AH were coded properly in the Student Learning Management System with a status that aligned with enrollment reporting requirements for a temporary interruption in study. In September 2025, key personnel at FNU completed comprehensive training with NSC regarding reporting timelines and to set up an automated reporting feed from FNU’s Student Learning Management System. FNU repeated the training again in January 2026 to ensure new staff were educated in the process and provide a consistent understanding of the updated procedures. As a result of these actions, FNU demonstrated improved consistency in reporting and timeliness. In addition to these steps, it was determined during 2026 that students submitting late notice to withdraw require a manual update in NSC. The automated data feed does not retroactively capture changes. Training is underway to ensure the offices of Registration and Financial Aid are aware of the file feed limitation and implement a process to update students with approved exceptions to late withdraw. Estimated Completion Date: August 31, 2026. Responsible Personnel: Jessalyn Cornett, Director of Academic Records & Registrar

Categories

Reporting Internal Control / Segregation of Duties Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 1228756 2026-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $47.89M
93.264 NURSE FACULTY LOAN PROGRAM (NFLP) $1.12M
93.247 ADVANCED NURSING EDUCATION WORKFORCE GRANT PROGRAM $1.10M
93.178 NURSING WORKFORCE DIVERSITY $277,095
93.732 MENTAL AND BEHAVIORAL HEALTH EDUCATION AND TRAINING GRANTS $89,607