Finding 25368 (2022-004)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-09
Audit: 25035
Organization: Donnelly College (KS)
Auditor: Forvis LLP

AI Summary

  • Core Issue: The College failed to report student enrollment status changes to the NSLDS accurately and on time, violating federal regulations.
  • Impacted Requirements: Enrollment reporting requirements under 34 CFR 690.83(b)(2) and 34 CFR 685.309 were not met, leading to discrepancies in reported data.
  • Recommended Follow-Up: The College should enhance its reporting processes and implement regular reconciliations to ensure timely and accurate updates to the NSLDS.

Finding Text

Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Federal Pell Grant Program 84.063 Award Year 2022 Criteria or Specific Requirement - Special Tests and Provisions: Enrollment Reporting Pell, 34 CFR 690.83(b)(2); Direct Loan, 34 CFR 685.309. Federal regulations require the institution to notify the Department of Education of changes in student enrollment information at the Campus Level and Program Level in a timely and accurate manner. These changes include reductions or increases in attendance levels, withdrawals, graduations, drop outs, or enrolled but never attended during the audit period. Institutions are responsible for timely reporting, whether they report directly or via a third-party service. Additionally, institutions are required to accurately report the student?s Campus-Level and Program-Level enrollment data. Condition - The College did not ensure accurate and timely notification to the National Student Loan Data System (NSLDS) of student status changes and program-level enrollment data. Questioned Costs - None. Context - Out of a population of 400 student enrollment status changes requiring notification, a sample of 40 students was selected for testing. Out of these 40 students selected for testing, there were four instances in which the student's status change was reported after the 60 day requirement. Additionally, there were four students selected where the campus and program-level record information was not in agreement between the NSLDS and the campus level information. The sample was not, and was not intended to be, a statistically valid sample. Effect - The NSLDS was not notified of the student enrollment status or program-level records on a timely and accurate basis. Cause - Lack of communication and oversight when reporting student status changes and program-level records to the NSLDS system. Identification as a Repeat Finding - Yes, see prior year findings 2021-005, 2020-005 and 2019-004. Recommendation - The College should review and update its processes and controls to ensure student status changes for program-level records are reported to the NSLDS in a timely and accurate manner. Additionally, we recommend that a formal reconciliation process is completed to validate the procedure is completed on a regular basis. Views of Responsible Officials and Planned Corrective Actions - Registrar Office automatically reports changes in student enrollment information to National Student Clearinghouse, which then goes into NSLDS on a monthly basis. The four students that failed this test for Audit Finding 2022-004 were due to student completion issues and Donnelly College overriding the add/drop policy to retroactively drop students. Registrar clearly provides the information and application process requirements to students who are graduating, and will not process their graduation until requirements are met. Once Registrar is made aware of a retroactive drop that overrides the add/drop policy, it is reported on the next month?s automatic report sent through National Student Clearinghouse to NSLDS.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 25363 2022-002
    Significant Deficiency Repeat
  • 25364 2022-003
    Significant Deficiency Repeat
  • 25365 2022-004
    Significant Deficiency Repeat
  • 25366 2022-005
    Significant Deficiency
  • 25367 2022-002
    Significant Deficiency Repeat
  • 25369 2022-006
    Significant Deficiency
  • 25370 2022-007
    Significant Deficiency
  • 25371 2022-008
    Significant Deficiency Repeat
  • 25372 2022-010
    Significant Deficiency
  • 25373 2022-009
    Significant Deficiency
  • 601805 2022-002
    Significant Deficiency Repeat
  • 601806 2022-003
    Significant Deficiency Repeat
  • 601807 2022-004
    Significant Deficiency Repeat
  • 601808 2022-005
    Significant Deficiency
  • 601809 2022-002
    Significant Deficiency Repeat
  • 601810 2022-004
    Significant Deficiency Repeat
  • 601811 2022-006
    Significant Deficiency
  • 601812 2022-007
    Significant Deficiency
  • 601813 2022-008
    Significant Deficiency Repeat
  • 601814 2022-010
    Significant Deficiency
  • 601815 2022-009
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.031 Higher Education Institutional Aid $1.87M
84.063 Federal Pell Grant Program $982,270
84.425 Covid-19 - Education Stabilization Fund - Institutional Portion $589,866
84.268 Federal Direct Student Loans $517,992
84.425 Covid-19 - Education Stabilization Fund - Student Portion $398,972
45.130 Promotion of the Humanities_challenge Grants $370,000
84.042 Trio_student Support Services $332,680
84.120 Minority Science and Engineering Improvement $161,918
84.033 Federal Work-Study Program $61,508
84.007 Federal Supplemental Educational Opportunity Grants $59,724
47.076 Stem Education (formerly Education and Human Resources) $11,050
84.425 Covid-19 Education Stabilization Fund - Minority Serving Institutions $5,000