Finding 37095 (2022-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 34346
Organization: New York Law School (NY)

AI Summary

  • Core Issue: The School failed to certify student enrollment every 60 days, leading to 35 out of 40 status changes not being reported on time or at all.
  • Impacted Requirements: Compliance with NSLDS regulations for timely reporting of student status changes was not met.
  • Recommended Follow-up: Implement a regular review process for the student roster to ensure all changes are identified and reported promptly.

Finding Text

The Department of Education through the National Student Loan Data System (?NSLDS?) requires that the School certify all students on their enrollment roster at least every 60 days, even if there has been no change in student status. Student status changes then must be reported to the NSLDS within the required time-period. Condition During our procedures to test compliance with this requirement to enrollment testing, for a sample of 40 students, 35 student status changes were either not reported timely or not reported at all. Cause The student roster was not reviewed timely and as a result student changes were not identified and reported in accordance with the compliance requirement. Effect As the change in status was not reported within the specified time or not reported at all, changes to student loan repayments were not determinable by the Department of Education. Questioned Costs None noted. Context The auditor selected 40 students to test enrollment and examined if the student had a change of address and whether there was an indication of withdrawing from the School either voluntarily or for academic purposes. We examined all applicable documentation to determine the date of any such change in status to conclude whether the School was in compliance with the reporting requirements for the student change in status.

Corrective Action Plan

We concur with this finding. The finding noted is a result of isolated instances of failure to adhere to established institutional procedures. Henceforth, the Registrar?s Office will update students? status changes after receipt from the Academic Affairs Office. Changes will be reported to the National Student Loan Clearinghouse within the 60-day submission period. This process will go into effect immediately.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 613537 2022-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $29.16M
84.038 Federal Perkins Loan Program $946,283
84.033 Federal Work-Study Program $740,296
84.425 Education Stabilization Fund $135,739