Finding 394822 (2023-001)

2023-001 - Non-Compliance with Timely Student Enrollment Change Submissions to the National Student Loan Data System (NSLDS) Grantor: U.S. Department of Education Cluster Name: Student Financial Assistance Cluster Award Names: Federal Pell Grant Program and Federal Direct Loan Program Award Year: 9/1/2022 - 8/31/2023 Award Number: Not applicable Assistance Listing Numbers: 84.063 and 84.268 Criteria: In accordance with 34 CFR 690.83(b)(2) and 685.309, institutions are required to report enrollment information under the Federal Pell Grant and Federal Direct Loan programs through the NSLDS. The enrollment information, inclusive of Campus Level and Program Level data, must be reviewed, updated and validated by the institution in a timely manner. Furthermore, specific to the Federal Direct Loan program, for a student who received a Direct Loan and was enrolled or accepted for enrollment at the institution, and the student had ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended, the institution must report the change within 60 days from which the change was identified. Condition: We reviewed a sample of twenty-five students enrolled at the University who received either Pell and/or Direct Loans and had a change of enrollment reporting data due date between March 1, 2023 through August 31, 2023 of the fiscal year. Of the twenty-five students tested, four students that graduated in the spring semester were not reported within the 60-day reporting timeframe. For these four students tested, the change in enrollment was reported to the NSLDS between 133-146 days from the date the change was identified. Cause: The University utilizes the National Student Clearinghouse (NSC) to report student enrollment data to NSLDS through roster updates. The University reported its graduation enrollment file to NSC after the Spring 2023 degrees were conferred, however, the file was not accepted by NSC based on its data validation checks that required management’s review. Before the data validation checks were cleared by management, the first of term enrollment file for the Fall 2023 semester was reported to and accepted by NSC. As these four students tested were not included in the Fall 2023 semester enrollment file, the students’ status within NSC was automatically updated to withdrawn, which was then reported to NSLDS. Once the graduation status was accurately updated in NSC, the student’s graduation status was not reported by NSC to NSLDS, and the student’s status in NSLDS remained as withdrawn until it was corrected by management in October 2023. Effect: A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies all of which are impacted by late reporting. Questioned Costs: There are no questioned costs associated with the finding. Recommendation: We recommend the University implement a process to ensure the student enrollment information, specifically the student’s graduation status, is reported to NSLDS accurately and timely. Management’s View and Corrective Action Plan Management’s View and Corrective Action Plan is included at the end of this report after the summary schedule of prior audit findings and status.