Finding 22761 (2022-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-07
Audit: 18555
Organization: United Lutheran Seminary (PA)

AI Summary

  • Core Issue: Six out of nine students' enrollment status changes were not reported to the NSLDS within the required 30 days.
  • Impacted Requirements: Institutions must report changes in student enrollment status to the NSLDS as per Title IV regulations.
  • Recommended Follow-Up: Revise procedures to ensure timely and accurate reporting of enrollment information to the NSLDS.

Finding Text

Federal Program: Student Financial Assistance Cluster, Federal Direct Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criteria: Title IV regulations stipulate institutions must report to the National Student Loan Data System (NSLDS) when a student to whom a loan made under Title IV ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended within 30 days after the institution discovers the student's status changed, unless the institution expects to submit its next updated enrollment report within 60 days. (34 CFR 385.309(b)). Condition: For six students out of nine tested, the change in student status was not reported to the NSLDS within 30 days or included in a response to a roster file within 60 days. However, the students were ultimately reported to the NSLDS. This sample was not statistically valid. Cause: The Organization's procedures for complying with this requirement were not designed appropriately to allow for timely reporting to the NSLDS. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Questioned Costs: There were no questioned costs associated with this finding. Context: The key position of financial aid director was vacant for part of the testing period. This position is responsible for proper enrollment reporting. As of the time of our testing, this position has been filled. Recommendation: The Organization should revise its procedures to ensure accurate enrollment information is sent to the NSLDS within the required timeframe. Views of Responsible Official(s): Management agrees with this finding and has recognized their need for a qualified individual who is knowledgeable about financial aid requirements. They have hired a new Director of Financial Aid and Student Housing.

Corrective Action Plan

Finding 2022-003 Condition For six students out of nine tested, the change in student status was not reported to the NSLDS within 30 days or included in a response to a roster file within 60 days. However, the students were ultimately reported to the NSLDS. This sample was not statistically valid. Corrective Action Plan Corrective Action Planned: We agree with this finding and are rectifying the issue. United Lutheran Seminary has retained a new Financial Aid Specialist who possesses the required knowledge and suitable skills for the position. Name(s) of Contact Person(s) Responsible for Corrective Action: Susie Kowalski, Director of Financial Aid. Anticipated Completion Date: Ms. Kowalski started with United Lutheran Seminary July 1, 2022.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 22759 2022-001
    Material Weakness Repeat
  • 22760 2022-002
    Significant Deficiency Repeat
  • 22762 2022-004
    Material Weakness
  • 22763 2022-005
    Significant Deficiency
  • 22764 2022-006
    Significant Deficiency
  • 599201 2022-001
    Material Weakness Repeat
  • 599202 2022-002
    Significant Deficiency Repeat
  • 599203 2022-003
    Significant Deficiency Repeat
  • 599204 2022-004
    Material Weakness
  • 599205 2022-005
    Significant Deficiency
  • 599206 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $564,857
84.425 Covid-19 Fund for the Improvement of Postsecondary Education Formula Grant $306,617
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) - Student Aid Portion $77,078
84.425 Covid-19 Higher Education Emergency Relief Fund (heerf) - Institutional Portion $35,080