Finding 511949 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-11-23
Audit: 329672
Organization: Summit Academy Oic (MN)

AI Summary

  • Core Issue: The Academy lacks a reliable process for reporting student enrollment data to NSLDS, leading to discrepancies in records.
  • Impacted Requirements: Non-compliance with 34 CFR 685.309(b) regarding timely and accurate reporting of enrollment status changes.
  • Recommended Follow-Up: The Academy should review and improve its procedures for reporting changes to ensure compliance with federal regulations.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: July 1, 2023, through June 30, 2024 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(b), states schools must have some arrangement to report student enrollment data to the National Student Loan Data System (NSLDS) through an enrollment roster file. The school is required to report changes in the student’s enrollment status, the effective date of the status, and an anticipated completion date as well as program enrollment effective date. Changes to a students’ 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, we noted 15 out of the 40 students’ enrollment effective report to NSLDS did not match the Academy’s records. Furthermore, we noted 22 out of the 40 students did not have their enrollment certified every 60 days. Lastly, we noted 1 out of 40 students change in status was not reported in a timely manner. Questioned costs: None Context: During our testing, it was noted the Academy does not have a process in place to ensure timeliness and accuracy of NSLDS reporting. Cause: The Academy did not have a process in place to ensure the effective dates reported matched the University’s records as well as that these changes were reported timely. Effect: The enrollment effective date reported to NSLDS is used to determine when the student’s grace period should begin. By not reporting an incorrect effective date, the grace period begin date for the student will be incorrect. In addition, the Academy did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely. Repeat finding: No Recommendation: We recommend the Academy reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the student status changes are being reported timely. Views of responsible officials: There is no disagreement with the audit finding.

Categories

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

Other Findings in this Audit

  • 511944 2024-001
    Significant Deficiency
  • 511945 2024-001
    Significant Deficiency
  • 511946 2024-001
    Significant Deficiency
  • 511947 2024-002
    Significant Deficiency
  • 511948 2024-002
    Significant Deficiency
  • 511950 2024-003
    Significant Deficiency
  • 511951 2024-003
    Significant Deficiency
  • 511952 2024-003
    Significant Deficiency
  • 511953 2024-004
    Significant Deficiency Repeat
  • 511954 2024-004
    Significant Deficiency Repeat
  • 511955 2024-004
    Significant Deficiency Repeat
  • 1088386 2024-001
    Significant Deficiency
  • 1088387 2024-001
    Significant Deficiency
  • 1088388 2024-001
    Significant Deficiency
  • 1088389 2024-002
    Significant Deficiency
  • 1088390 2024-002
    Significant Deficiency
  • 1088391 2024-002
    Significant Deficiency
  • 1088392 2024-003
    Significant Deficiency
  • 1088393 2024-003
    Significant Deficiency
  • 1088394 2024-003
    Significant Deficiency
  • 1088395 2024-004
    Significant Deficiency Repeat
  • 1088396 2024-004
    Significant Deficiency Repeat
  • 1088397 2024-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.61M
17.289 Community Project Funding/congressionally Directed Spending $709,503
84.007 Federal Supplemental Educational Opportunity Grants $40,900
84.033 Federal Work-Study Program $9,638