Finding 41738 (2022-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-13
Audit: 38581
Organization: Urshan College (MO)

AI Summary

  • Core Issue: The College failed to report student enrollment status changes to NSLDS within the required timeframes, leading to significant deficiencies in internal controls.
  • Impacted Requirements: Compliance with 34 CFR 685.309 and 2 CFR 200.303 was not maintained, as error records were not corrected and resubmitted timely.
  • Recommended Follow-Up: Implement a robust review process to ensure accurate and timely reporting of enrollment changes to avoid potential over awards and repayment issues.

Finding Text

2022-005 Special Tests and Provisions Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing No. 84.063, 84.268 Federal Award Identification Number and Year: P063P218567-2022, P268K228567-2022 Award Periods: July 1, 2021 through June 30, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance ? Other Matters Criteria or specific requirement: The Code of Federal Regulations (34 CFR 685.309) requires enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure enrollment reporting is completed properly. Condition: Throughout the 2021-22 award year, we noted error records were being returned on the enrollment reporting rosters that were sent to National Student Loan Data System (NSLDS) and those error records were not being corrected and resubmitted within the required 10 days. Out of the eight students, from a statistically valid sample, we noted five (5) students status changes were reported after the 60-day reporting requirement. We also noted for the same five students that enrollment was not certified 60 days. In addition, the enrollment reports do not have a documented review before they are uploaded. Questioned Costs: None Context: Throughout the 2021-22 award year, we noted error records were being returned on the enrollment reporting rosters that were sent to National Student Loan Data System (NSLDS) and those error records were not being corrected and resubmitted within the required 10 days. Out of the eight students, from a statistically valid sample, we noted five (5) students status changes were reported after the 60-day reporting requirement. We also noted for the same five students that enrollment was not certified 60 days. Cause: The College did not have the appropriate resources and staffing in place to verify they were in compliance with all requirements. Effect: If the NSLDS system is not updated with the student information, over awards could occur should the student transfer to another institution and the students may not properly enter the repayment period. Repeat findings: 2021-007 Recommendation: We recommend the College design controls to ensure an adequate review process is in place to ensure compliance with reporting requirements. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Matching / Level of Effort / Earmarking Special Tests & Provisions Student Financial Aid Reporting Significant Deficiency

Other Findings in this Audit

  • 41730 2022-003
    Material Weakness Repeat
  • 41731 2022-005
    Significant Deficiency Repeat
  • 41732 2022-006
    Significant Deficiency Repeat
  • 41733 2022-007
    Significant Deficiency Repeat
  • 41734 2022-008
    Significant Deficiency Repeat
  • 41735 2022-009
    Significant Deficiency
  • 41736 2022-003
    Material Weakness Repeat
  • 41737 2022-004
    Significant Deficiency
  • 41739 2022-006
    Significant Deficiency Repeat
  • 41740 2022-007
    Significant Deficiency Repeat
  • 41741 2022-008
    Significant Deficiency Repeat
  • 618172 2022-003
    Material Weakness Repeat
  • 618173 2022-005
    Significant Deficiency Repeat
  • 618174 2022-006
    Significant Deficiency Repeat
  • 618175 2022-007
    Significant Deficiency Repeat
  • 618176 2022-008
    Significant Deficiency Repeat
  • 618177 2022-009
    Significant Deficiency
  • 618178 2022-003
    Material Weakness Repeat
  • 618179 2022-004
    Significant Deficiency
  • 618180 2022-005
    Significant Deficiency Repeat
  • 618181 2022-006
    Significant Deficiency Repeat
  • 618182 2022-007
    Significant Deficiency Repeat
  • 618183 2022-008
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.26M
84.063 Federal Pell Grant Program $859,647