Finding Text
The District did not accurately report required student information to the federal agency, risking students not being asked to repay financial assistance Cluster name: Student Financial Assistance Cluster Assistance Listings number(s) and name(s): 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work-Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Award number(s) and year(s): P007A240134 July 1, 2024 through June 30, 2025 P033A240134 July 1, 2024 through June 30, 2025 P063P242910 July 1, 2024 through June 30, 2025 P268K252910 July 1, 2024 through June 30, 2025 Federal agency: U.S. Department of Education Compliance requirement: Special tests and provisions – enrollment reporting Questioned costs: None Condition Contrary to federal regulations, the District’s Financial Aid Office (Office) did not accurately report student enrollment status changes to the National Student Loan Data System (NSLDS) as required. Specifically, the Office reported incorrect dates for students’ enrollment changes for 5 of the 63 students we tested participating in the Federal Pell Grant (Pell) or Federal Direct Student Loans (Direct Loans) programs. Effect The District’s students may not be asked to repay student financial assistance grants and loans if or when required if the NSLDS does not accurately reflect students’ enrollment status. Also, the District is at risk that student enrollment status changes may be reported inaccurately for additional students attending the summer session. Cause Office management reported that they do not have formal policies and procedures for reviewing and verifying that student enrollment status changes are submitted accurately to NSLDS. Criteria Federal regulations require reporting to the NSLDS all applicable students’ enrollment statuses and any enrollment status changes for the Pell and Direct Loans programs within 60 days of the students’ change. Student enrollment status changes include reductions or increase in attendance levels, withdrawals, graduations, or approved leaves of absence (34 Code of Federal Regulations [CFR] §§685.309[b][2] and 690.83[b][2]). Further, federal guidelines require establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR §200.303). Recommendations to the District Develop and implement policies and procedures for enrollment reporting to: Report accurate student enrollment statuses and changes within 60 days of the change to the NSLDS for all students receiving Pell and Direct Loans. Review, verify, and correct as necessary the student-enrollment status data compiled from system-generated reports prior to submitting it to NSLDS. Designate an individual to verify that student enrollment status changes recorded on its student information system and reported to NSLDS are accurate. Views of responsible officials District management concurs with this finding. The District’s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials regarding these recommendations. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy.