FAC Explorer

Finding 517180 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2024-12-30
Audit: 335132
Organization: Union College (NE)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University failed to report student enrollment changes to NSLDS on time and with accurate effective dates.
  • Impacted Requirements: Compliance with 34 CFR 685.309(b) regarding timely and accurate reporting of enrollment data.
  • Recommended Follow-Up: The University should review and improve its processes for reporting enrollment status changes to ensure alignment with NSLDS requirements.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid ALN Number: Student Financial Aid Cluster Award Period: June 01, 2023 through May 31, 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. In addition, at a minimum, schools are required to certify enrollment every 60 days, and respond within 15 days of the date that NSLDS sends a Roster file to the school or its third-party servicer. Condition: During our testing, we noted 16 out of the 40 students tested where the student was not reported in a timely manner after the school determined the students change in status. In addition, we noted for 4 out of the 40 students tested, the enrollment effective date per NSLDS did not match the enrollment effective date per the University’s records. Questioned Costs: None Context: During our testing, it was noted the University does not have a process in place to ensure timeliness and accuracy of NSLDS reporting. Cause: The University 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 University did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely. Repeat finding: No Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the enrollment effective date reported to NSLDS on the campus and program level is aligning with the University. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the University reevaluate its procedures and review policies surrounding reporting status changes to NSLDS to put a process in place to ensure the enrollment effective date reported to NSLDS on the campus and program level is aligning with the University. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The process Union Adventist University follows to ensure that enrollment effective dates as reported to NSLDS are submitted and coordinated through the Records Office. Records submits the list of enrollment effective dates to the National Student Clearinghouse. The Records office will be monitoring for error reports from National Student Clearinghouse that might affect the change of enrollment effective dates. The Records submits monthly reports to the National Student Clearinghouse for any changes that occur during the month. Name(s) of the contact person(s) responsible for corrective action: Tricia Harris, Director of Student Financial Services Planned completion date for corrective action plan: The goal date for this project to be completed is prior to the FY25 audit.

Categories

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

Other Findings in this Audit

  • 517181 2024-002
    Significant Deficiency
  • 517182 2024-002
    Significant Deficiency
  • 517183 2024-002
    Significant Deficiency
  • 517184 2024-002
    Significant Deficiency
  • 517185 2024-002
    Significant Deficiency
  • 1093622 2024-002
    Significant Deficiency
  • 1093623 2024-002
    Significant Deficiency
  • 1093624 2024-002
    Significant Deficiency
  • 1093625 2024-002
    Significant Deficiency
  • 1093626 2024-002
    Significant Deficiency
  • 1093627 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $6.15M
84.063 Federal Pell Grant Program $980,910
84.038 Federal Perkins Loan Program $803,300
93.364 Nursing Student Loans $248,089
84.033 Federal Work-Study Program $145,190
84.007 Federal Supplemental Educational Opportunity Grants $138,396