Finding 34741 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-12

AI Summary

  • Core Issue: Enrollment status changes for federal aid recipients were not reported within the required 60-day timeframe, leading to outdated records.
  • Impacted Requirements: Schools must accurately report enrollment changes to the NSLDS to determine eligibility for in-school status, deferment, and grace periods.
  • Recommended Follow-Up: Enhance controls and revise procedures to ensure timely and accurate reporting of enrollment changes from the National Student Clearinghouse to NSLDS.

Finding Text

REFERENCE: 2022-003 ? Student Financial Assistance ? Enrollment Reporting Federal Agency: U.S. Department of Education Program: Student Financial Assistance Cluster Award(s): Federal Pell Grant; Federal Work-Study Federal Supplemental Educational Opportunity Grants Assistance Listing Number(s): 84.063; 84.033; 84.007 Award Year: July 2021 through June 20, 2022 CRITERIA: Schools are required to confirm and report to the National Student Loan Data System (?NSLDS?) the enrollment status of students who receive federal funds. Enrollment information is used to determine the borrower?s eligibility for in-school status, deferment, interest subsidy, and grace period. Enrollment changes, such as a change from full-time to half-time status, graduation, withdrawal, or an approved leave of absence, are changes that need to be reported. The enrollment information is merged into the NSLDS database and reported to guarantors, lenders, and servicers of student loans. CONDITION: The certification date for all records tested, with the exception of one, was not within 60 days of the change in enrollment. A previous employee mistakenly submitted a previous semesters data to the National Student Clearinghouse, which had old data. As a result, the National Student Clearinghouse had to rerun all files submitted from the Fall of 2020 end of term through April 2022 to rebuild the incorrect student records. As a result of this, the dates were not within the required timeframe. QUESTIONED COSTS: None. CAUSE/EFFECT: The office of Student Financial Aid relies on the National Student Clearinghouse to report enrollment changes to the NSLDS. The effective administration of Title IV funds could be impacted when changes in students? enrollment are not reported timely and accurately. The accuracy of enrollment information is important, as a student's enrollment status determines eligibility for in-school status, deferment, grace period, and repayments. Due to the inaccurate submission of the student files, the enrollment reporting dates were not within the required timeframe. RECOMMENDATION: We recommend the College enhance its controls and revise its procedures to ensure that not only are status changes reported to the Clearinghouse, but also that the enrollment changes are reported appropriately from the National Student Clearinghouse to NSLDS. VIEW OF RESONSIBLE OFFICIALS: Management concurs with this finding and will reassess and implement controls to ensure that timely and accurate enrollment reporting is made.

Categories

Student Financial Aid Eligibility Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 34739 2022-002
    -
  • 34740 2022-003
    Significant Deficiency
  • 34742 2022-003
    Significant Deficiency
  • 611181 2022-002
    -
  • 611182 2022-003
    Significant Deficiency
  • 611183 2022-003
    Significant Deficiency
  • 611184 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund $6.93M
84.063 Federal Pell Grant Program $2.14M
84.031 Higher Education_institutional Aid $1.41M
43.008 Education $302,010
84.048 Career and Technical Education -- Basic Grants to States $187,192
84.007 Federal Supplemental Educational Opportunity Grants $69,500
47.076 Education and Human Resources $32,648
17.258 Wia Adult Program $27,182
17.259 Wia Youth Activities $12,395
23.002 Appalachian Area Development $10,501
84.002 Adult Education - Basic Grants to States $9,536
84.033 Federal Work-Study Program $8,907
17.278 Wia Dislocated Worker Formula Grants $5,565
12.600 Community Investment $1,120