Finding 32688 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 32312
Organization: University of La Verne (CA)

AI Summary

  • Core Issue: The University failed to correct a rejected student enrollment report within the required 10-day period due to staff turnover in the Financial Aid department.
  • Impacted Requirements: Institutions must report accurate enrollment information to NSLDS and correct any errors within specified timelines to maintain compliance.
  • Recommended Follow-Up: Update internal control procedures for enrollment reporting to ensure timely corrections and knowledge transfer among staff.

Finding Text

Finding #: 2022-001 Funding Year(s): 7/1/2021 ? 6/30/2022 Federal Direct Student Loan (FAL #84.268) Award Numbers: Various Federal Agency: U.S. Department of Education Type of Finding: Special Test ? Enrollment Reporting ? Compliance and Internal Control (Significant Deficiency) Criteria: Institutions are required to report enrollment information under the Pell grant and Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access website. Institutions must complete and return within 15 days the Enrollment Reporting Roster File, within a minimum of every 60 days. If errors are identified by NSLDS in the submitted roster, an Error/Acknowledgement file is provided to the institution and the institution has 10 days to correct the errors and resubmit to NSLDS. Condition/Context: From a non-statistical sample of forty (40) students for which enrollment changes were reported to NSLDS, we identified one (1) instance where the student information was rejected, and for which a correction was not made within the required 10 days. Cause/Effect: Based on discussions with personnel, the above occurred due to significant turnover at the University within the Financial Aid department, including the individual with primary responsibility for NSLDS reporting. Without proper transfer of knowledge to the new Financial Aid personnel, previous processed and controls were not followed to ensure timely updated of rejected student information. Questioned Costs: None noted. Identification as a Repeat Finding: This is not a repeat finding. Recommendation: We recommend the University?s management update the internal control procedures in place surrounding enrollment reporting, including the correction of data rejected by NSLDS. Views of Responsible Official: Management agrees with the finding.

Corrective Action Plan

Description of Finding: There was a sample of forty (40) students for which enrollment changes were reported to NSLDS. There was one (1) instance where the student information was rejected, and for which a correction was not made within the required 10 days. Corrective Action Plan: Uploads to the National Student Clearinghouse are now reviewed through a report which performs a pre-check for common errors in an effort to reduce the number of enrollment errors overall. The reject reports are monitored with every upload and are managed using the outlined best practices from the National Student Clearinghouse directly. The reject reports are managed within 10 days of receipt with any changes captured within the same timeframe. The responsible parties are Adam Evans at aevans@laverne.edu. This will be corrected by July 1, 2023.

Categories

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

Other Findings in this Audit

  • 32689 2022-002
    Material Weakness Repeat
  • 32690 2022-003
    Material Weakness Repeat
  • 32691 2022-002
    Material Weakness Repeat
  • 32692 2022-003
    Material Weakness Repeat
  • 32693 2022-002
    Material Weakness Repeat
  • 32694 2022-003
    Material Weakness Repeat
  • 609130 2022-001
    Significant Deficiency
  • 609131 2022-002
    Material Weakness Repeat
  • 609132 2022-003
    Material Weakness Repeat
  • 609133 2022-002
    Material Weakness Repeat
  • 609134 2022-003
    Material Weakness Repeat
  • 609135 2022-002
    Material Weakness Repeat
  • 609136 2022-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loan $64.06M
84.063 Federal Pell Grant $8.41M
84.425 Higher Education Emergency Relief Fund (heerf) Institutional Portion $6.02M
84.425 Higher Education Emergency Relief Fund (heerf) Student Aid Portion $5.54M
84.038 Federal Perkins Loan $1.08M
84.031 Higher Education Institutional Aid - Title III $822,307
84.007 Federal Supplemental Educational Opportunity Grant (fseog) $816,284
84.033 Federal Work Study $780,962
84.031 Higher Education Institutional Aid - Title V $446,660
59.037 Small Business Development Centers $201,214
93.866 Aging Research $88,502
59.037 Small Business Development Centers - Cares Grant $50,205
84.425 Higher Education Emergency Relief Fund (heerf) Minority Serving Institutions $41,418
47.076 Stem Education $25,225
47.049 Mathmatical and Physical Sciences $15,244
45.149 Promotion of the Humanities Division of Preservation and Access $9,114