Finding Text
Finding No. 2023–002 – Special Tests and Provisions – Enrollment Reporting
Federal Program Name
Federal Pell Grant Program (PELL), ALN 84.063
Federal Direct Student Loan Program (DL) ALN 84.268
Name of Federal Agency
U.S. Department of Education
Pass-through Entity
N/A
Criteria
The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients.
The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program.
A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence.
Condition
During our examination of the enrollment reporting test, from twenty-five (25) cases of students examined, we found that in two (2) cases, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the students within the required 60 days’ period.
Cause
The registrar reported the students graduated status within the required time frame to the National Student Clearinghouse (NSC), but the NSC exceeded the timeframe agreed with the University to report the student status changes to the NSDLS.
Effect
As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis.
Questioned Cost
None
Context
Of the 235 status changes for 2023, we selected 25 students for testing and noted 2 instances in which the University did not comply with the enrollment reporting requirements.
Identification of a Repeat Finding
This is not a repeat finding from the immediate previous audit.
Recommendation
Management should reassess the timeframe in which the University submits the information to the NSC and reinforce its monitoring of NSC to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS.
Views of Responsible Officials and Planned Corrective Actions
The University management agrees with this finding. Please refer to the corrective action plan on page 54.