Finding 392296 (2023-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-04

AI Summary

  • Core Issue: The College's enrollment reporting to NSLDS is inaccurate and not timely, affecting compliance with federal regulations.
  • Impacted Requirements: Institutions must report student enrollment changes within 30 days or during the next scheduled transmission, as per 34 CFR 685.309(2).
  • Recommended Follow-Up: Revise reporting processes, implement controls for timely updates, and regularly verify enrollment statuses to ensure compliance.

Finding Text

Identification of the Federal Program - Student Financial Aid Cluster - Assistance Listing Nos. 84.007, 84.033, 84.063, and 84.268 Criteria - Institutions are required to report enrollment information under the Pell grant and the Direct Loan program via the National Student Loan Data System (NSLDS). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates reported to NSLDS. Institutions are responsible for accurate reporting. According to 34 CFR 685.309(2), the College is required to notify the Department of Education via the NSLDS if a “student has ceased to be enrolled on at least a half-time basis for the period for which the loan was intended”. Changes to status are required to be reported within 30 days of becoming aware of the status change, or with the next schedule transmission of statuses if the scheduled transmission is within 60 days. Condition - A sample of students were selected from the population of all students who received federal student financial aid during the year ended September 30, 2023. We obtained the student records and tested compliance with federal regulations for the specific loans and grants. For 1 student selected for Enrollment Reporting testing, the withdrawal date per the NSLDS enrollment detail did not agree to the withdrawal date per the College’s records. For 17 students selected for Enrollment Reporting testing, the status change to withdrawn was not reported within the 60 day reporting window after the status change was effective. For 5 students selected for Enrollment Reporting testing, the student’s withdrawal was not reported to NSLDS. Cause - The College’s processes of internal controls for reporting enrollment information and timely reporting of student status changes to NSLDS were not adequate. Effect - Enrollment reporting to NSLDS did not include accurate information. Student status changes were not reported to NSLDS within the required timeframe. Recommendation - We recommend the College revise its processes for reporting enrollment information and to timely report student status changes to NSLDS. The College should implement a process to review, update, and verify student enrollment statuses that appear on the Enrollment Reporting roster files. We also recommend that management implement controls to ensure reported changes are timely reported to the NSLDS. Views of Responsible Officials - Management agrees with the finding.

Corrective Action Plan

The Student Financial Aid department will address the circumstances of the finding by working with the institution’s primary contact at the National Student Clearinghouse before Fall 2024. They will review and establish a scheduled transmission of reporting to meet the standards of The Department of Education Title IV programs. The Financial Aid Director and Registrar will work closely together to revise the unofficial withdrawal process before Fall 2024. The new process should ensure unofficial withdrawals are reported promptly, with accurate data, and within the roster file, based on the 50% midpoint of the semester instead of the last date of attendance. Testing will be conducted randomly during Fall 2024 to ensure the accuracy of the new process and the information reported in each roster file.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 392297 2023-002
    Significant Deficiency
  • 392298 2023-002
    Significant Deficiency
  • 392299 2023-002
    Significant Deficiency
  • 392300 2023-001
    Significant Deficiency
  • 392301 2023-001
    Significant Deficiency
  • 392302 2023-001
    Significant Deficiency
  • 968738 2023-002
    Significant Deficiency
  • 968739 2023-002
    Significant Deficiency
  • 968740 2023-002
    Significant Deficiency
  • 968741 2023-002
    Significant Deficiency
  • 968742 2023-001
    Significant Deficiency
  • 968743 2023-001
    Significant Deficiency
  • 968744 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $8.61M
84.268 Federal Direct Student Loans $5.61M
84.425 Education Stabilization Fund $760,373
84.002 Adult Education - Basic Grants to States $315,459
17.258 Wia Adult Program $202,494
84.007 Federal Supplemental Educational Opportunity Grants $158,775
84.033 Federal Work-Study Program $68,212
84.048 Career and Technical Education -- Basic Grants to States $64,125
17.268 H-1b Job Training Grants $63,349
17.259 Wia Youth Activities $39,783
17.285 Apprenticeship USA Grants $14,559
47.076 Education and Human Resources $5,732
17.278 Wia Dislocated Worker Formula Grants $3,510