Finding 43708 (2022-004)

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Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-29
Audit: 48679
Organization: Lenoir-Rhyne University (NC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to report changes in student enrollment status to NSLDS on time and inaccurately reported significant data elements.
  • Impacted Requirements: Compliance with federal enrollment reporting requirements under Pell and Direct Loan programs was not met, risking repayment issues for borrowers.
  • Recommended Follow-Up: Enhance procedures for accurate and timely enrollment reporting; implement monthly updates to ensure compliance with federal regulations.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: Special Tests and Provisions ? Enrollment Reporting: Institutions are required to report enrollment information under the Pell grant and the Direct and Federal Family Education Loan (?FFEL?) loan programs via the National Student Loan Data System (?NSLDS?) (OMB No.1845-0035), although FFEL loans are no longer made or a part of the Student Financial Assistance Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). 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 that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (?NSLDSFAP?) website which the financial aid administrator can access for the auditor. The data on the institution?s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. 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. According to the Guide, any errors identified and returned by NSLDS in an Error/Acknowledgement file should be corrected and resubmitted within 10 days. Condition: Campus Level: The University did not report certain students? changes in enrollment status to NSLDS within the required timeframe. Program Level: The University did not accurately report certain students? significant data elements to NSLDS. Certain error/acknowledgement file errors were not corrected within the required timeframe. Cause: Administrative oversight. Effect or Possible Effect: The University was not in compliance with enrollment reporting requirements. Failure to promptly report accurate and timely changes in enrollment status may adversely impact the repayment status for student loan borrowers. Questioned Costs: None. Context: For 2 of 40 campus level records tested, the University did not timely report the students? withdrawn status to NSLDS. For 1 of 25 program level records tested, the University failed to report the student?s withdrawn status to NSLDS. For 2 of 25 program level records tested, the University failed to report the students? second major program of study. Several instances of repeating error records were identified throughout the fiscal year. Recommendation: We recommend that the University enhance its procedures to ensure accurate and timely enrollment reporting. Views of Responsible Officials: The University has modified reporting practices to SSCR in order to meet Federal Regulations 34 CFR 690.83(b)(2), 34 CFR 682.610 and 34 CFR 685.309. The Office of Academic Records will report student enrollment to SSCR on the 15th of every month (or the following business day if the 15th falls on a weekend, holiday or scheduled university closure). This plan will allow for reporting from SSCR to NSLDS to meet the 60 day timeline for student status change. The University has also strengthened report criteria to ensure that all current program and major detail are provided to SSCR.

Corrective Action Plan

Name of Responsible Individual(s): Stacey Brackett, University Registrar Corrective Action: The University has modified reporting practices to SSCR in order to meet Federal Regulations 34 CFR 690.83(b)(2), 34 CFR 682.610 and 34 CFR 685.309. The Office of Academic Records will report student enrollment to SSCR on the 15th of every month (or the following business day if the 15th falls on a weekend, holiday or scheduled university closure). This plan will allow for reporting from SSCR to NSLDS to meet the 60 day timeline for student status change. The University has also strengthened report criteria to ensure that all current program and major detail are provided to SSCR. Anticipated Completion Date: 12/31/2022

Categories

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

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.78M
84.063 Federal Pell Grant Program $3.04M
84.425 Education Stabilization Fund $389,393
84.007 Federal Supplemental Educational Opportunity Grants $253,509
84.033 Federal Work-Study Program $132,876
84.038 Federal Perkins Loan Program $0