Finding Text
SCHEDULE OF FINDINGS AND QUESTIONED COSTS AND CORRECTIVE ACTION PLAN
Federal Award Findings and Questioned Costs
June 30, 2023
Comment 2023-005
ENROLLMENT REPORTING PROCEDURES SHOULD BE STRENGTHENED
STUDENT FINANCIAL AID CLUSTER PROGRAM
CFDA # 84.268
(Questioned Costs - None)
Condition:
When the Registrar’s Office discovers that a student did not enroll or ceased to be enrolled on at least a half-time basis,
the National Student Loan Data System (NSLDS) should be notified of the change in the student’s enrollment status
within thirty days of the occurrence, unless the Institution expects to complete its next scheduled filing within sixty days.
During our audit, we noted three (3) instances in which student status changes were reported more than sixty (60) days
after the occurrence.
Context:
A haphazard selection of ten (10) students was made from the list of student withdrawals and graduates during the year.
Criteria:
Federal regulations require the Institution to notify the NSLDS of a change in student status (i.e., withdrawn, graduated,
enrolled less than half-time, etc.). Unless the Institution expects to complete its next filing within sixty days, the
Institution must notify the NSLDS within thirty days if it discovers a student with an outstanding federal loan balance
has ceased to be enrolled on at least a half-time basis. [34 CFR 685.309]
Effect:
The lender or guaranty agency is not receiving prompt notification of changes in borrower’s enrollment status. This
results in delayed processing of loan repayment periods and leads to poor default management. Late or incorrect updates
to the NSLDS may also cause students to receive loans for which they are not eligible, as half-time enrollment is a
requirement for Federal Direct Loan (FDL) eligibility.
Cause:
Necessary withdrawal documentation is not consistently processed and forwarded to appropriate departments in a timely
manner to ensure reports are accurately filed as scheduled. Overall, there is an inadequate process of verifying the
enrollment status of students.
Recommendation:
The Institution should implement procedures to ensure compliance with federal regulations. The Registrar’s Office
should obtain a complete understanding of the NSLDS reporting requirements. Improving the accuracy and timeliness
of student status filings will aid in the transition of students to loan repayment status.
Views of Responsible Officials and Planned Corrective Actions:
Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency
from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a
timely basis.
Implementation date: Immediately.
Persons Responsible: Vice President of Business & Finance, the Registrars Office and the Director of Student
Financial Aid.