Finding 29951 (2022-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-28
Audit: 30447
Organization: Philander Smith College (AR)

AI Summary

  • Core Issue: The College did not report student status changes to the NSLDS on time or accurately, affecting compliance with federal financial aid requirements.
  • Impacted Requirements: Enrollment reporting must be completed within 15 days of receiving the roster file, with updates required within 30 days for changes in student status.
  • Recommended Follow-Up: Strengthen internal controls for enrollment reporting and conduct a review of past reports to ensure all status changes are accurately communicated to the Department of Education.

Finding Text

Finding 2022-002 ? Federal Pell Grant, Federal Direct Student Loans ? Federal Student Financial Aid Cluster, CFDA# 84.063, 84.268 Compliance Requirement: Special Tests ? Enrollment Reporting Condition: Student status changes were not reported to the National Student Loan Data System (?NSLDS?) in a timely manner or were not accurately reported. Criteria: Under the Pell grant and ED loan programs, institutions must complete and return within 15 days the Enrollment Reporting roster file [formerly the Student Status Confirmation Report (SSCR)] placed in their Student Aid Internet Gateway (SAIG) (OMB No. 1845-0002) mailboxes sent by ED via NSLDS (OMB No. 1845-0035). The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website (FPL, 34 CFR Section 674.19; Pell, 34 CFR Section 690.83(b)(2); FFEL, 34 CFR Section 682.610; Direct Loan, 34 CFR Section 685.309). Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of-absence. Cause: The College?s internal controls and processes in place surrounding enrollment reporting need to be strengthened. Context: Out of a population of 20 withdrawn and 146 graduated students, a population of two withdrawn students and the 15 graduated students were selected for testing. The College failed to communicate to NSLDS a change of status in a timely manner in 1 instance and reported 6 students as withdrawn that should have been reported as graduated students. Effect: Changes in enrollment status were not reported timely and accurately. Repeat Finding: This finding was a repeat of Finding 2021-003 in the immediate prior audit. Recommendation: The College should continue to review its processes and procedures over enrollment reporting and implement internal controls over compliance that prevent and detect both a lack of communication of withdrawal changes and an improper communication of enrollment status and effective dates. The College should conduct a retrospective review of its Enrollment Reporting Summary Report (SCHER1) file on the NSLDS website and compare to the Registrar?s records to ensure that previously communicated status changes (and status changes that have not been communicated) are correctly communicated to the Department of Education. Management Response: The College concurs with this finding. Corrective Action Plan: See attached management?s corrective action plan.

Corrective Action Plan

Finding 2022-002 ? Federal Pell Grant, Federal Direct Student Loans ? Federal Student Financial Aid Cluster, CFDA# 84.063, 84.268 The Fiscal Affairs Office is working with the Office of the Registrar and the College?s third-party technology managed services provider, Ellucian, to review the setup surrounding the student enrollment reporting process. The Office of the Registrar, in concert with Ellucian, will also conduct IT trial testing and training to determine the technical issues surrounding this audit finding. This will enhance the necessary support for the Office of the Registrar on this matter. Contact Person: LaTonya Hayes, Interim Vice President for Fiscal Affairs Telephone: (501) 370-5341 E-mail: lhayes@philander.edu Contact Person: Bertha Owens, Registrar Telephone: (501) 370-5215 E-mail: bowens@philander.edu Contact Person: Nicholas Tea, CIO Telephone: (501)975-8501 E-mail: ntea@philander.edu

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Special Tests & Provisions

Other Findings in this Audit

  • 29952 2022-002
    Significant Deficiency Repeat
  • 29953 2022-003
    Significant Deficiency Repeat
  • 606393 2022-002
    Significant Deficiency Repeat
  • 606394 2022-002
    Significant Deficiency Repeat
  • 606395 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $5.54M
84.268 Federal Direct Student Loans $3.95M
84.031 Higher Education_institutional Aid $3.34M
84.063 Federal Pell Grant Program $2.30M
93.558 Temporary Assistance for Needy Families $204,497
84.007 Federal Supplemental Educational Opportunity Grants $140,469
84.033 Federal Work-Study Program $45,462
47.076 Education and Human Resources $38,827
47.083 Integrative Activities $34,270
93.680 Medical Student Education $24,914