Finding 51825 (2022-103)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-29

AI Summary

  • Core Issue: The District failed to accurately report student enrollment status changes to the NSLDS for 4 out of 60 students in the Pell and Direct Loans programs.
  • Impacted Requirements: Federal regulations mandate that enrollment status changes must be reported within 60 days, and effective internal controls must be maintained.
  • Recommended Follow-Up: The District should implement procedures to ensure accurate and timely reporting of enrollment changes to the NSLDS.

Finding Text

Cluster name: Student Financial Assistance Cluster Assistance Listings numbers and names: 84.007 Federal Supplemental Educational Opportunity Grants 84.033 Federal Work Study Program 84.063 Federal Pell Grant Program 84.268 Federal Direct Student Loans Award numbers and year: P007A210134, P033A210134, P063P212910, and P268K222910 July 1, 2021 through June 30, 2022 Federal agency: U.S. Department of Education Compliance requirement: Special tests and provisions Questioned costs: None Condition?Contrary to federal regulations, the District did not accurately report student enrollment status changes and the effective dates of those changes to the National Student Loan Data System (NSLDS) for 4 of 60 students we tested participating in the Federal Pell Grant (Pell) or Federal Direct Student Loans (Direct Loans) programs. Effect?The District?s students may not be asked to repay student financial assistance grants and loans if or when required if the NSLDS does not accurately reflect students? enrollment status. Cause?The District developed written procedures to verify that student enrollment status changes recorded on its student information system and reported to NSLDS were accurate during fiscal year 2021; however, the District reported that due to the impact of the COVID-19 pandemic on District operations, they were unable to fully implement them by June 30, 2022. Consequently, the individual assigned to report student enrollment status changes to NSLDS did not always verify that reports being generated with student enrollment status data were accurate. Criteria?Federal regulations require reporting to the NSLDS all applicable students? enrollment statuses and any enrollment status changes for the Pell and Direct Loans programs within 60 days of the students? change. Student enrollment status changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves of absence (34 Code of Federal Regulations [CFR] ??685.309[b][2] and 690.83[b][2]). Also, federal regulation requires establishing and maintaining effective internal control over federal awards that provides reasonable assurance that federal programs are being managed in compliance with all applicable laws, regulations, and award terms (2 CFR ?200.303). Recommendations?The District should fully implement written procedures to: 1. Report accurate enrollment statuses and changes to the NSLDS within 60 days of a change for each student receiving Pell and Direct Loans. 2. Verify that student enrollment status changes recorded on its student information system and reported to NSLDS are accurate and reported to NSLDS within required time periods. The District?s corrective action plan at the end of this report includes the views and planned corrective action of its responsible officials. We are not required to audit and have not audited these responses and planned corrective actions and therefore provide no assurances as to their accuracy. This finding is similar to prior-year finding 2021-101.

Categories

Student Financial Aid Special Tests & Provisions Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 51818 2022-102
    Material Weakness Repeat
  • 51819 2022-103
    Significant Deficiency Repeat
  • 51820 2022-102
    Material Weakness Repeat
  • 51821 2022-103
    Significant Deficiency Repeat
  • 51822 2022-102
    Material Weakness Repeat
  • 51823 2022-103
    Significant Deficiency Repeat
  • 51824 2022-102
    Material Weakness Repeat
  • 51826 2022-101
    Material Weakness
  • 51827 2022-101
    Material Weakness
  • 51828 2022-101
    Material Weakness
  • 628260 2022-102
    Material Weakness Repeat
  • 628261 2022-103
    Significant Deficiency Repeat
  • 628262 2022-102
    Material Weakness Repeat
  • 628263 2022-103
    Significant Deficiency Repeat
  • 628264 2022-102
    Material Weakness Repeat
  • 628265 2022-103
    Significant Deficiency Repeat
  • 628266 2022-102
    Material Weakness Repeat
  • 628267 2022-103
    Significant Deficiency Repeat
  • 628268 2022-101
    Material Weakness
  • 628269 2022-101
    Material Weakness
  • 628270 2022-101
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Education Stabilization Fund - Institutional Portion $7.41M
84.063 Federal Pell Grant Program $5.19M
84.425 Education Stabilization Fund - Student Portion $4.71M
84.268 Federal Direct Student Loans $851,729
84.425 Education Stabilization Fund - Msi Portion $601,788
17.259 Wioa Youth Activities $563,398
84.031 Higher Education - Institutional Aid $540,969
84.002 Adult Education - Basic Grants to States $397,377
84.047 Trio Upward Bound $384,652
84.042 Trio - Student Support Services $311,841
84.048 Career and Technical Education - Basic Grants to States $266,199
84.007 Federal Supplemental Educational Opportunity Grants $140,700
84.335 Child Care Access Means Parents in School $77,897
84.033 Federal Work-Study Program $76,266
17.268 H-1b Job Training Grants $33,311
43.008 Office of Stem Engagement (ostem) $18,245
59.037 Small Business Development Centers $18,117
47.076 Stem Education (formerly Education and Human Resources) $10,630
84.411 Education Innovation and Research (formerly Investing in Innovation (i3) Fund) $8,978
84.116 Fund for the Improvement of Postsecondary Education $1,314