FAC Explorer

Finding 33159 (2022-003)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-29
Audit: 29857
Organization: Prescott College, Inc. (AZ)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The College failed to report student enrollment status changes to NSLDS within the required timeframes, impacting compliance with federal regulations.
  • Impacted Requirements: Regulations mandate reporting changes within 30 or 60 days and ensuring accurate effective dates; discrepancies were found in 3 out of 40 cases tested.
  • Recommended Follow-up: Implement a review process for enrollment roster files to ensure accurate reporting of effective dates at both the "Campus Level" and "Program Level."

Finding Text

2022-003: National Student Loan Data System (NSLDS) Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Number: 84.063 ? Federal Pell Grant Program 84.268 ? Federal Direct Loans 84.007 ? Federal Supplemental Educational Opportunity Grants 84.033 ? Federal Work Study Program Award Period: July 1, 2021 to June 30, 2022 Type of Finding: - Significant Deficiency in Internal Control Over Compliance; Other Matter Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don?t pass the NSLDS enrollment reporting edits. Condition: During our testing, it was noted the change in status was reported outside the 60 day window for 2 out of the 40 students tested. In addition, the enrollment status reported to NSLDS did not match the student's transcript for 1 out of the 40 students tested. Questioned Costs: None Context: During our testing, it was noted the College does not have a process in place to ensure accuracy of NSLDS reporting. Cause: The College's processes and controls did not ensure that student status changes and effective dates were properly reported to NSLDS. The effective date should be the student's last date of attendance and academically-related activity. Effect: The NSLDS system is not updated with the correct student information which can cause a student to not properly enter the repayment period. Repeat Finding: Yes, 2021-001 Auditors? Recommendation: We recommend reviewing the components of the enrollment roster file to ensure the correct effective date is reported correctly for both the "Campus Level" and "Program Level". Views of Responsible Officials: No Disagreement

Corrective Action Plan

2022-003 Student Financial Assistance Cluster ? Assistance Listing No. Various Recommendation: We recommend reviewing the components of the enrollment roster file to ensure the correct effective date is reported correctly for both the "Campus Level" and "Program Level". Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: In August 2021, the College hired a new Registrar who implemented changes to National Student Clearinghouse (NSC) reporting. These changes have been documented and include: 1) Review of error files received from the NSC related to degree verification. Update of student records based upon findings on error file. 2) Using additional report, diploma list, to manually check that graduating students are correctly reported to the NSC. 3) Strict adherence to deadlines contained in the College catalog regarding degree conferrals. 4) Increased communication between departments when student status changes occur between reporting dates. This response is the same as in the FY 2020-21 audit, to be completed by 6/30/22, the end of this audited period. While there were still issues found during the audit, the error rate decreased from 38.7% to 7.5% during FY 2021-22. Processes are still being refined to reduce the errors further. Name(s) of the contact person(s) responsible for corrective action: Michele Peterson Planned completion date for corrective action plan: 06/30/2023

Categories

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

Other Findings in this Audit

  • 33160 2022-003
    Significant Deficiency Repeat
  • 33161 2022-003
    Significant Deficiency Repeat
  • 33162 2022-003
    Significant Deficiency Repeat
  • 33163 2022-002
    Significant Deficiency
  • 609601 2022-003
    Significant Deficiency Repeat
  • 609602 2022-003
    Significant Deficiency Repeat
  • 609603 2022-003
    Significant Deficiency Repeat
  • 609604 2022-003
    Significant Deficiency Repeat
  • 609605 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $11.55M
84.063 Federal Pell Grant Program $898,030
84.425E Heerf Student Aid Portion $579,228
84.425F Heerf Institutional Portion $503,249
84.031A Title Iii: Making A Difference: Transforming the Undergraduate Experience $368,364
84.007 Federal Supplemental Educational Opportunity Grants $108,079
10.310 Agriculture and Food Research Initiative (afri) $105,909
94.013 Volunteers in Service to America $88,099
84.033 Federal Work-Study Program $72,978
84.425M Heerf Strengthening Institutions $46,156
94.006 Americorps $23,012
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $21,020
15.637 Migratory Bird Joint Ventures $8,400
84.425N Heerf Fund for the Improvement of Postsecondary Education (fipse) Formula Grant $0