Finding 513119 (2024-001)

Significant Deficiency Repeat Finding
Requirement
L
Questioned Costs
-
Year
2024
Accepted
2024-12-05
Audit: 331081
Organization: Hodges University, Inc. (FL)

AI Summary

  • Core Issue: The University failed to report student enrollment changes accurately and on time, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 685.309 (b) and NSLDS Enrollment Reporting Guide, which mandate timely updates on student enrollment status.
  • Recommended Follow-Up: The University should revise its policies and procedures to improve accuracy in reporting enrollment changes to NSLDS.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster CFDA Number: 84.268 – Federal Direct Loan Program 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) outlines that schools must update the secretary with pertinent information within 30 days (unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days) after the date the school discovers a student changed enrollment from half time/full time/graduate/withdrawal/etc. Section 4.4.2 of the NSLDS Enrollment Reporting Guide (Circa November 2018) establishes the definition of the effective date, certification date, and received date. Condition: During our detail testing of NSLDS Enrollment Reporting we noted instances where the University did not comply with the requirements noted above. Questioned costs: None. Context: During our detail testing of NSLDS Enrollment Reporting we noted the following discrepancies in our sample of 30 students:  11 instances in which the program enrollment effective date did not match the program-level enrollment effective date per NSLDS  6 instances where the student status change was not reported within the required time frame Cause: the University’s policies and procedures did not detect and correct these errors to ensure compliance. Effect: Noncompliance with federal regulations which could lead to untimely reporting of enrollment information to NSLDS. Repeat Finding: Yes, prior year finding 2023-002. Recommendation: We recommend that the University review their policies and procedures to ensure accurate reporting and responding to enrollment rosters to NSLDS. Views of responsible officials: See Corrective Action Plan prepared by the University.

Corrective Action Plan

National Student Loan Data System (NSLDS) Enrollment Reporting Recommendation: We recommend that the University review their policies and procedures to ensure accurate reporting and responding to enrollment rosters to NSLDS. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Reason for finding: The previous corrective action plan failed to fully address this finding. Action taken in response to finding: Not Applicable- No corrective action will be made, Hodges University closed on August 25th, 2024. Name(s) of the contact person(s) responsible for corrective action: Not Applicable Planned completion date for corrective action plan: Not Applicable

Categories

Student Financial Aid Reporting Significant Deficiency Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 513120 2024-002
    Significant Deficiency Repeat
  • 1089561 2024-001
    Significant Deficiency Repeat
  • 1089562 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.69M
84.268 Federal Direct Student Loans $1.64M
84.007 Federal Supplemental Educational Opportunity Grants $9,600