Finding 387665 (2023-002)

2023–002 – NSLDS Enrollment Reporting Federal Agency: Department of Education Federal Program: Student Financial Assistance Cluster Assistance Listing Numbers: 84.268 – Federal Direct Student Loans Award Period: July 1, 2022 to June 30, 2023 Type of Finding: Other Matters Finding related to Compliance and Significant Deficiency in Internal Controls over Compliance. Criteria or Specific Requirement: Institutions are required to report, certify, and correct enrollment information under the Direct Loan programs via the National Student Loan Data System (NSLDS) (OMB No. 1845-0035) (34 CFR 685.309). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. Institutions must return the roster within 15 days of receipt, and correct errors within 10 days of receipt. There are two categories of enrollment information; “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: During our testing of the Direct Loan programs, we selected a sample of 40 students to test for timeliness and accurate reporting of student status changes to the National Student Loan Data System (NSLDS). 24 of 40 students tested had one or more instances of noncompliance noted below: I. Twenty-four instances where the student’s program begin date reported to NSLDS did not agree to the Institution's records. 34 CFR 685.309 (b)(1) and 34 CFR 690.83(b)(2) II. One instance where the student’s program enrollment effective date was incorrectly reported to NSLDS. 34 CFR 685.309 (b)(1) and 34 CFR 690.83(b)(2) Questioned Costs: None Context: Out of a sample of 40 students selected for testing we noted the exceptions as described above. Cause: The University’s processes and controls did not ensure that student status changes were properly reported to NSLDS and errors corrected timely. 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: YES Recommendation: We recommend the Institution review its reporting procedures to ensure that students’ program begin dates and program enrollment effective dates are accurately reported to NSLDS as required by regulations. Views of Responsible Officials and Planned Corrective Actions: See Corrective Action Plan prepared by the University.