Finding Text
2023 – 001: Special Tests and Provision: Enrollment Reporting
Federal Agency: U.S. Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistance Listing Number: 84.007 (Federal Supplemental Educational Opportunity Grants Program), 84.033 (Federal Work Study Program), 84.038 (Federal Perkins Loan Program), 84.063 (Federal Pell Grant Program), 84.268 (Federal Direct Student Loans Program), 93.364 (Nursing Student Loans)
Federal Award Identification Number and Year: N/A; 2022-2023
Award Period: August 1, 2022 – July 31, 2023
Pass-Through Agency: N/A
Pass-Through Numbers: N/A
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to the National Student Loan Data System (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.
Condition: While performing audit procedures, it was noted that 1 student of our sample of twenty four (24) was reported to NSLDS outside of the 60 day requirement. The student graduated June 2, 2023 but was not reported until September 7, 2023.
Questioned costs: None
Context: A control system to prevent and detect errors in the reporting process was not created to ensure all required reporting compliance was filed timely. During the period of late reporting, the University was in the process of an information technology upgrade causing delays in access for reporting.
Cause: The University’s processes and controls did not ensure that student status changes were properly and timely reported to NSLDS. Effect: The NSLDS system is not updated with the student information which can cause over awarding should the student transfer to another institution and the students may not properly enter the repayment period.
Repeat Finding: No
Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations.
Views of responsible officials: There is no disagreement with the audit finding.