Finding Text
III. Federal Awards Findings and Questioned Costs
FINDING 2024‐001 – Special Tests and Provisions – Enrollment Reporting
Significant Deficiency in Internal Control over Compliance
Student Financial Assistance Cluster
U.S. Department of Education
Assistance Listing Number: Various
Federal Program Name: Student Financial Assistance Cluster
Award Year: 2023-24
Criteria: Pell Grant, Section 34 CFR Section 690.83(b) (2) An institution shall submit, in accordance
with deadline dates established by the Secretary (Secretary of the Department of Education), through
publication in the Federal Register, other reports and information the Secretary requires and shall
comply with the procedures the Secretary finds necessary to ensure that the reports are correct.
Direct Loan, Section 34 CFR Section 685.309(b) (2) Unless the institution expects to submit its next
updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary
within 30 days after the date the school discovers that a loan under title IV of the Act was made to or
on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has
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.
Condition and context: A sample of 35 students who possessed status changes during the year
were selected for our testing procedures. Our sample was selected using a random and judgmental
sampling methodology, from a population of 937 total status changes. Student record changes were
compared to updated enrollment reports sent to the Secretary. We noted that the process for
reporting conferrals did not take place regularly in the summer months. We noted that of 35 students
sampled and tested, one student was reported 2 days late. Upon further investigation we determined
that internal controls were not in place and operating effectively to timely report students who
graduated during the various summer sessions. We did not expand our sample.
Questioned costs: None
Effect: The University did not regularly report conferrals in the summer, and as such the status
change was not reported timely on the updated enrollment submittals. This information is utilized by
the Department of Education, the Federal Direct Loan program, lenders, and other institutions to
determine in‐school status.
Cause: This occurred because the process in place was not designed effectively to report summer
conferrals in time to meet the reporting requirement deadline.
Repeat finding: No.
Recommendation: We recommend the University implements a process to ensure graduates for all
semesters/terms are reported timely.