Finding 31035 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: The University failed to report 15 out of 43 student enrollment status changes to the NSLDS on time, violating federal regulations.
  • Impacted Requirements: Enrollment changes must be reported within 30 days or on a roster within 60 days; delays can affect federal loan and grant compliance.
  • Recommended Follow-Up: The University should enhance controls for monitoring enrollment reporting and ensure timely communication with its third-party service provider.

Finding Text

Information on the Federal Program: Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2021-2022 Criteria or Specific Requirement: Special Tests and Provisions - Enrollment Reporting Condition: Federal regulations provide that the University is responsible for notifying the National Student Loan Data System ("NSLDS") of changes in enrollment within 30 days or on an Enrollment Reporting roster file within 60 days. The University's internal control system did not prevent certain late or missed changes requiring reporting. 15 student enrollment status changes tested were not communicated to the NSLDS either on a timely basis, or reported incorrectly, at the Program Level, or in certain instances, both the Program and Campus Level. Questioned Costs: None Context: Out of a population of 280 student enrollment status changes requiring NSLDS notification, a sample of 43 student enrollment changes were selected for testing. 15 of the status changes had deviations from reporting requirements. Our sample was not and was not intended to be statistically valid. Effect: The University may not be able to timely detect when students are not being included within the Enrollment Reporting roster file which could result in the NSLDS not being properly notified of student enrollment changes for Direct Loan and Pell recipients in accordance with federal regulations. Cause: During fiscal year 2022, 12 of the 15 exceptions related to graduates where graduation was not reported to the University's third party servicer until after the 60 day period and then was reported as withdrawn instead of graduated. In some of these cases, this was a Program Level only issue where the student was still attending the university in graduate studies and therefore campus level was correct. The remaining three exceptions related to students who ceased enrollment either temporarily or permanently and were not reported timely. Identification as a Repeat Finding, if Applicable: Not Applicable Recommendation: We recommend the University evaluate controls around monitoring enrollment reporting to determine changes, either on the electronic processes or review processes that should be made to properly capture enrollment status changes on a timely basis and to properly monitor its third party service provider for timely reporting as necessary. Views of Responsible Officials and Planned Corrective Action Plan: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Corrective Action Plan

The underlying cause of the University's internal control system deficiency regarding Enrollment Reporting primarily related to staffing changes as well as an employee performance matter. The Financial Aid Office has addressed the employee performance matter and provided additional training across all team members. In addition, the Financial Aid Office has implemented new oversight, review processes and procedures across internal departments intended to enhance the timely submission of enrollment changes to the NSLDS in accordance with the requirements. These enhanced processes and procedures were implemented during the fiscal year ending June 30, 2023.

Categories

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

Other Findings in this Audit

  • 31036 2022-001
    Significant Deficiency
  • 607477 2022-001
    Significant Deficiency
  • 607478 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $22.78M
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $4.44M
84.038 Federal Perkins Loan Program $885,717
84.425 Education Stabilization Fund $813,223
93.866 Aging Research $606,212
84.063 Federal Pell Grant Program $397,099
93.865 Child Health and Human Development Extramural Research $299,800
84.033 Federal Work-Study Program $270,750
12.420 Military Medical Research and Development $199,649
93.853 Extramural Research Programs in the Neurosciences and Neurological Disorders $166,554
84.007 Federal Supplemental Educational Opportunity Grants $150,942
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $100,000
93.395 Cancer Treatment Research $39,308
93.837 Cardiovascular Diseases Research $12,600
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $10,298
93.279 Drug Abuse and Addiction Research Programs $7,110
93.242 Mental Health Research Grants $3,480