Finding 30838 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-18
Audit: 35595
Organization: McPherson College (KS)

AI Summary

  • Core Issue: The College reported incorrect withdrawal dates for two students, violating federal enrollment reporting regulations.
  • Impacted Requirements: Compliance with 34 CFR 690.83(b)(2) and 34 CFR 685.309, which mandate accurate and timely reporting of student enrollment statuses.
  • Recommended Follow-Up: Provide training for staff on reporting requirements and implement a review process by knowledgeable personnel to ensure compliance.

Finding Text

2022-002 National Student Loan Data System (NSLDS) Enrollment Reporting Type of Finding ? Significant Deficiency and Noncompliance Student Financial Assistance Cluster: Federal Direct Loans ? CFDA 84.268 Criteria: 34 CFR 690.83(b)(2) and 34 CFR 685.309 provide regulations to institutions for the accurate and timely reporting of student enrollment information. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates. The institution should have sufficient internal controls over program compliance to report information accurately and timely. Condition: Two students that withdrew from the College were found to have status change effective dates reported to the NSLDS that were not compliant with enrollment reporting guidelines. Questioned Costs: None identified. Context: Out of a sample of 40 students with status changes, two students that withdrew were identified as having incorrect dates reported to the NSLDS. Effect: Dates reported to the Department of Education impact when students enter repayment on outstanding student loans. Incorrect dates reported to the Department of Education could cause a student to enter repayment at a time not in accordance with related regulations. Cause: For the 2021-2022 award year, the College modified its process for enrollment reporting of withdrawing students. The enrollment services department had responsibility for identifying the effective withdraw dates prior to the 2021-2022 award year. This responsibility was transferred to the student affairs department for the 2021- 2022 award year. Personnel within student affairs did not have sufficient knowledge of regulations governing the determination of effective withdraw dates for student?s with student financial assistance. The internal controls over review of the effective dates provided to the registrar?s office by student affairs were not effective at preventing or detecting and correcting the incorrectly identified effective dates. Identification as a Repeat Finding: Not a repeat finding. Recommendation: We recommend the individual responsible for identifying effective status change dates for withdrawing students receive training on the requirements. We also recommend that a separate individual with sufficient knowledge of the reporting requirements perform a periodic and timely review of the student status change effective dates to verify the dates are in accordance with Department of Education regulations. Views of Responsible Officials: McPherson College agrees with the finding and the recommendations. The College is identifying the appropriate resource and providing training on the regulations to those involved within the enrollment reporting process.

Corrective Action Plan

Finding 2022-002: National Student Loan Data System (NSLDS) Enrollment Reporting Corrective Action Plan: We concur with the auditor?s finding. We have reviewed our processes related to the enrollment reporting of withdrawing students. The student affairs department will receive training on the requirements related to status change effective dates in accordance with the Department of Education regulations. In addition, the financial aid department and the registrar?s office are working together to confirm student rosters to verify that enrollment reporting is timely and accurate. Contact Person Responsible for Corrective Action: Shana Meyer, VP for Student Affairs; Andy Olsen, Director of Financial Aid; Rhianna Reed, Assistant Registrar Anticipated Completion Date: Corrective action is in progress as of August and will be completed by December.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Reporting Significant Deficiency

Other Findings in this Audit

  • 30836 2022-003
    Significant Deficiency
  • 30837 2022-001
    Significant Deficiency
  • 607278 2022-003
    Significant Deficiency
  • 607279 2022-001
    Significant Deficiency
  • 607280 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.52M
84.063 Federal Pell Grant Program $1.32M
84.038 Federal Perkins Loans $815,612
84.007 Federal Supplemental Educational Opportunity Grants $91,549
84.033 Federal Work-Study Program $63,249
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $28,290
84.425 Education Stabilization Fund $6,293