FAC Explorer

Finding 46066 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-11
Audit: 40248
Organization: Charles R. Drew University of Medicine and Science (CA)
Auditor: Moss Adams LLP

AI Summary

  • Core Issue: The University failed to report nine student status changes to the NSLDS within the required timeframe, leading to inaccurate loan status information.
  • Impacted Requirements: Compliance with 34 CFR section 685.309(b)(2)(i) mandates timely notification to the Department of Education regarding student enrollment status changes.
  • Recommended Follow-Up: Revise policies to clarify roles in reporting changes and implement controls to ensure timely and accurate reporting to NSLDS.

Finding Text

FINDING 2022-001 ? Special Tests and Provisions ? Enrollment Reporting: Significant Deficiency in Internal Control Over Compliance "See Schedule of Findings and Questioned Costs for chart/table" Criteria ? Direct Loan, 34 CFR section 685.309(b)(2)(i): An institution is required to notify the Department of Education within 30 to 60 days (depending on the method of communication) if it discovers that a Direct Subsidized, Direct Unsubsidized, or Direct PLUS Loan has been made to or on behalf of a student who enrolled at that school but has ceased to be enrolled on at least a half-time basis. Condition/Context ? A sample of 34 federal aid recipient students were selected from system generated reports of 422 students who graduated, withdrew, or dropped during the 2021-2022 academic year. The enrollment information and withdrawal, address change, or graduation date per the University?s records was compared to the information reported to the National Student Loan Data System (NSLDS) in order to determine if status changes were reported within the required timeframes. We also obtained the SCHER1 report and reviewed the days elapsing between when records were distributed to the University and when responses were provided. A total of nine student status changes were not reported to the NSLDS within the required timeframe. One monthly distribution was not responded to within the 15 day timeframe. Effect ? The NSLDS database did not include accurate information until the point at which it was corrected. This information is utilized by Department of Education, the Direct Loan program, lenders, and other institutions to determine in-school status, deferment, and grace periods of student loans. Incorrect information could result in incorrect deferment, grace periods, billing, and repayment of student loans. Cause ? Starting in 2022, the University contracted with a third-party intermediary to transmit enrollment information to NSLDS. Prior to that, records were updated either manually or through a batch update process. Management?s existing processes did not identify and report the student status changes within the required timeframe. Repeat Finding ? This is not a repeat finding. Recommendation ? We recommend the University revise its policies to establish clear roles and responsibilities and processes in which to report student status changes to the third-party intermediary. We also recommend that management implement controls to ensure reported changes were ultimately timely and correctly reported to the NSLDS. Views of Responsible Officials and Planned Corrective Actions ? The University will update monthly reporting to National Student Clearinghouse when responding to NSLDS roster files rather than every other month. Additionally, the department has revised paperwork for graduating students to ensure status are processed in a timely manner by the Registrar.

Categories

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

Other Findings in this Audit

  • 46064 2022-001
    Significant Deficiency
  • 46065 2022-001
    Significant Deficiency
  • 46067 2022-001
    Significant Deficiency
  • 46068 2022-001
    Significant Deficiency
  • 46069 2022-001
    Significant Deficiency
  • 46070 2022-001
    Significant Deficiency
  • 622506 2022-001
    Significant Deficiency
  • 622507 2022-001
    Significant Deficiency
  • 622508 2022-001
    Significant Deficiency
  • 622509 2022-001
    Significant Deficiency
  • 622510 2022-001
    Significant Deficiency
  • 622511 2022-001
    Significant Deficiency
  • 622512 2022-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 William D. Ford Federal Direct Loan Program $28.61M
93.307 Sustaining Faculty Development & Community Engagement Endowment $24.68M
93.307 Office of Academic Computing Endowment $15.00M
93.307 Medical Science Institute Temporary Endowment $15.00M
84.425 Higher Education Emergency Relief Funds (hbcu) $8.27M
93.307 Medical Science Institute Endowment $5.00M
93.307 National Center Research Recourse Research and Education Advancement Center/health Endowment $4.00M
93.307 Accelerating Excellence in Translational Sci (axis) $3.93M
93.307 Lsi: Sustaining Faculty Development and Community Engagement Supplement $3.77M
84.425 Higher Education Emergency Relief Funds (institutional Portion) $2.95M
84.031 Historically Black Colleges and Universities $2.17M
93.266 Hbcu Consortium-Zambia (jhiepgo Corporation) $1.96M
93.307 Nih Endowment Interest Earned $1.61M
93.397 Ucla Cancer Center Partnership to Eliminate Cancer $736,121
12.350 Hiv Prevention in Angolan Military Phase II $730,721
84.063 Federal Pell Grant Program $674,788
84.425 Higher Education Emergency Relief Funds (student Portion) $671,702
93.925 Disadvantaged Students - Elm $614,679
93.822 Health Careers Opportunity Program $508,801
93.925 Disadvantaged Students - Mph $494,742
93.350 Clinical & Translational Science Instit $472,768
93.844 Primary Care Training and Enhancement (hrsa) $397,519
93.918 Ryan White Title III Outpatient Eis Program-Yr 17 $367,298
12.420 Effects Electronic Cigarettes Cardiomyopath Military $336,520
93.307 Mentored Postdoctoral Training in Translational Research and Biomedical Informatics Program $317,473
93.859 CO-Targeting Obesity in Prostrate Cancer Chemo Therapy $313,240
93.264 Nurse Faculty Loan Program $305,066
93.396 Metabolic Repro Strategy Trmt Diabetes and Breast Cancer $275,007
16.575 Child Advocacy Center Program (cal Governor Oes) $219,826
99.U01 Beige Adipocytes & African American Breast Tumors $211,304
93.279 The Next Generation Substance Abuse Training at Cdu and Ucla $203,574
93.149 Aids Regional Education and Training Center $189,649
93.859 Therapeutic Metabolism Elect Ciga Ind Cardiac Dysf $138,384
93.879 Predicting Diabetic Retinopathy From Risk Factor Data and Digital Retinal Images $127,687
93.859 Role of Carf-Insulin Resist-Non Alcoholic Fatty Liver $125,957
93.307 Novel Pathway Pathogenesis & Pathophysiology on Nafld $90,594
93.855 Covid-19 Prevention Network Covpn (f.hutchinson) $87,059
93.307 Understanding Hiv Biomedical Prevention $83,537
84.033 Federal Work-Study Program $72,645
93.855 Covid19 Site Preparedness Protocol Site (f.h) $69,847
93.844 Training Primary Care Champions (aitamed) Subaward $61,843
84.007 Federal Supplemental Educational Opportunity Grants $52,895
93.938 The Covid-19 California Alliance $31,800
93.U02 Life Course Intervention Network $26,562
93.279 Hiv Intervention Models, Criminal Justice-Black Msm $21,794
93.918 Ryan White Title III Outpatient Eis Program-Yr 18 $19,661
93.855 Covpn 3006 Protocol (f.hutchinson) $16,061
12.420 E-Cigarette Vaping-Pregnancy Lactation Lundquist $15,640
93.U01 Covid-19 Health and Environmental Impact on Community $14,639
93.859 Follistatn Regulation of Energy & Lipid Metabolism Atheros $14,059
93.396 Mechanism Hyperglycemia-Associated Breastcancrrisk $13,221
93.886 Covid-19 Impact on Health and Well-Being $10,807
93.242 Nih Tailoring Healthy Relationship in Msm $7,263
93.855 Identifying Men Pref for Male Ctr Tb Case Intervention $7,263
93.918 Ryan White Title III Outpatient Eis Program-Yr 16 $6,982
93.350 Ctsi: Drug Abuse Research Day and Diabetes Day $6,400
93.310 Ascend Training Increase Diversity Biomed Research (msucdu118973) $3,025
93.847 The Regents of Uc - Advanced Research Training Kidney Disease $2,470
93.866 Follistatin Promotes Browning and Influences Energy Metabolism $1,835
93.837 Cultivating Interest in Research Careers -(circ) $111