Finding 503146 (2024-001)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-10-18
Audit: 325158
Organization: Amridge University, Inc. (AL)

AI Summary

  • Core Issue: The University failed to report student enrollment and graduation statuses to the NSLDS on time and accurately.
  • Impacted Requirements: This violates federal regulations requiring timely and accurate enrollment reporting under 2 CFR 200.303 and 34 CFR 682.610.
  • Recommended Follow-Up: The University should review and improve its reporting processes to ensure compliance with NSLDS requirements.

Finding Text

Finding 2024-001: Untimely and Inaccurate Enrollment Reporting Compliance Requirement: Special Tests & Provisions: Enrollment Reporting Type: Material Weakness in Internal Control over Compliance; Material Noncompliance Federal Awarding Agency: U.S. Department of Education AL Numbers and Titles: 84.063 and 84.268 – Student Financial Aid Cluster Grant Award Period: July 1, 2023 through June 30, 2024 Questioned Costs: None Repeat Finding: No Criteria: Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. Condition: During our testing of 12 students, we identified 9 students for which the student's enrollment status was not reported timely to the National Student Loan Data System (NSLDS) and 8 students whose graduation status was not accurately reported to the NSLDS. Cause: During the year, the University submitted its listing of individuals who graduated to Clearinghouse to upload to NSLDS. However, the University did not review the listing of exceptions from Clearinghouse related to the students whose status changes were not uploaded to NSLDS, which caused the enrollment changes for students who graduated to not be reported in accordance with federal requirements. This caused students to not be reported to NSLDS until the audit.Effect: The University was not in compliance with the requirements to properly report student enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace period for the repayment and interest of outstanding Title IV student loans. Recommendation: We recommend the University review current processes for reporting to NSLDS and implement procedures to ensure submissions are reported timely and accurately. Views of Responsible Officials Corrective Actions: The University agrees with this finding. Please refer to the Corrective Action Plan.

Corrective Action Plan

Correction action University personnel corrected the records in NSLDS and Clearinghouse on July 26, 2024 that were identified in Finding 2024-001. Additionally, university personnel conducted a thorough review of all students to ensure the records in NSLDS properly reflected an accurate enrollment status. The university immediately (August 2024) implemented training for the newly appointed Interim Registrar on the importance of timely and accurate reporting of enrollment status changes and graduation status. This training was conducted in coordination with the Vice President of Student Services, the Director of Financial Aid, the Controller, and the Director of Information Technology. In addition to hands-on training provided by university personnel, online resources were utilized from NSLDS, Clearinghouse, and the United States Department of Education. The policies and procedures for enrollment reporting has been strengthened, and includes the following reporting schedule: a student roster schedule will be submitted every 30 days. The exceptions report will be reviewed immediately and will be corrected within 10 days. Within 15 days of the end of each semester, a list of graduated students will be submitted to NSLDS. Exceptions will be corrected immediately to ensure all records in NSLDS match the student’s record. The university is confident that the finding related to enrollment reporting has been resolved. Enrollment files are being submitted every 30 days. Summer 2024 completers graduated on August 9, 2024. These students were reported through Clearinghouse, exceptions were addressed, and enrollment statuses of “Graduated” show on NSLDS as certified on September 13, 2024. The schedule of enrollment and reporting and graduation reporting will ensure that the statuses will be accurate in NSLDS. Responsible Person Rose Mulkey, Interim Registrar Anticipated completion date Completed as of July 26, 2024.

Categories

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

Other Findings in this Audit

  • 503147 2024-001
    Material Weakness
  • 1079588 2024-001
    Material Weakness
  • 1079589 2024-001
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.75M
84.063 Federal Pell Grant Program $979,449
84.007 Federal Supplemental Educational Opportunity Grants $13,959