Finding 194957 (2022-001)

Significant Deficiency
Requirement
CFI
Questioned Costs
-
Year
2022
Accepted
2022-12-21
Audit: 178562
Organization: Vernon College (TX)

AI Summary

  • Core Issue: The College failed to report the enrollment status of four withdrawn students to NSLDS within the required 60-day timeframe due to system errors.
  • Impacted Requirements: Compliance with enrollment reporting regulations as outlined in CFR sections 674.19(f), 685.309(b), and 690.83(b)(2) was not met, affecting student eligibility for financial aid.
  • Recommended Follow-Up: Provide ongoing training for staff responsible for enrollment updates to ensure timely and accurate reporting to NSLDS.

Finding Text

A. Compliance Findings 2022-001 Program Name: Student Financial Aid Cluster Assistance Listing Numbers/Names: 84.007 Federal SEOG 84.033 Federal Work Study 84.063 Federal Pell Grant 84.268 Federal Direct Loans Federal Agency: U.S. Department of Education Compliance Requirement: Enrollment Reporting Questioned Costs: Not applicable Criteria: In accordance with CFR sections 674.19(f), 685.309(b), and 690,83(b)(2), "upon receipt of an enrollment report from the Secretary (U.S. Department of Education, Secretary of Education), a school must update all information included in the report and return the report to the Secretary, in the manner and format prescribed by the Secretary and within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a halftime basis for the period for which the loan was intended." Condition: We reviewed a sample of 8 students who withdrew during the fiscal year. Of the 8 students tested, four students were reported to NSLDS after the required 60-day period. The POISE system would not correctly report withdrawn students during the year due to an error in the system. All withdrawn students were appropriately reported as withdrawn at the beginning of the subsequent semester, which often fell outside the 60-day period. Population and Sample Size: Number Dollars Questioned Cost Population 85 $ N/A $ N/A Sample 8 N/A N/A Not in compliance 4 N/A None Effect: A student's enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are negatively impacted by inaccurate and late reporting. Cause: The process for tracking and reporting a change in enrollment is the responsibility of the College. The Central Registrar's office maintains the existing policy and procedure to report every 30 days to NSLDS. Due to technical complications in the College's student system, POISE, withdrawn students were not included on the enrollment reports uploaded to the NSLDS every 30 days. Withdrawn students were instead only included on reports that were run once a semester. All four students were not reported to the NSLDS as withdrawn within the required 60-day time limit each of their appropriate semester. One student in the Fall 2021, one student in the Spring 2022, and two students in the Summer 2022. Recommendation: We recommend the College reinforce its policies and procedures by continuing to provide training to individuals involved in the process, specifically those responsible for inputting enrollment changes into the system, to ensure the NSLDS records are updated timely and accurately.

Corrective Action Plan

Management has reviewed the draft Schedule of Findings and Questioned Costs for FY 2022. We agree with the finding and are actively working to improve processes to ensure student files are uploaded timely. The Vice President of Student Services has already begun training with the Assistant Registrar to ensure these errors are not duplicated in future years. Additionally, we have reached out to POISE to find the source of the data collection issue. We feel certain as we move forward with a new student information system these errors will be resolved.

Categories

Student Financial Aid Reporting Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 771399 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.12M
84.063 Federal Pell Grant Program $4.03M
84.048 Career and Technical Education -- Basic Grants to States $320,720
84.007 Federal Supplemental Educational Opportunity Grants $149,250
93.041 Special Programs for the Aging_title Vii, Chapter 3_programs for Prevention of Elder Abuse, Neglect, and Exploitation $53,940
84.033 Federal Work-Study Program $40,751
84.425 Education Stabilization Fund $676