Finding 51844 (2022-002)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-27
Audit: 42773
Organization: North Central University (MN)

AI Summary

  • Core Issue: The University failed to notify the Department of Education about a change in the Director of Student Financial Services within the required 10-day period.
  • Impacted Requirements: This finding highlights a significant deficiency in internal controls over compliance with federal regulations (34 CFR 668.25(e)).
  • Recommended Follow-Up: The University should review and improve its procedures for updating the ECAR to ensure timely and accurate reporting.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: Various Award Period: June 1, 2021 to May 31, 2022 Type of Finding: ? Significant Deficiency in Internal Control Over Compliance; Other Matter Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.25(e) states that an institution must notify the Department of Education by way of the ECAR within 10 days of a change in position of an official at the University. Condition: During our testing, we noted that the change in Director of Student Financial Services was not reported timely to the Department of Education. Questioned Costs: None Context: During our testing, we noted the Director of Student Financial Services had a change in position and it was not updated within 10 days. Cause: The Director of Student Financial Services left in January 2021. The ECAR was not updated for the new Director of Student Financial Services at the time of testing in July. Effect: The University is not in compliance with Department of Education requirements that state the ECAR must have accurately reported information. Repeat Finding: No Auditors? Recommendation: We recommend the University review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Views of Responsible Officials: No Disagreement

Corrective Action Plan

2022-002 Various Recommendation: We recommend the University review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed. Views of responsible officials: There is no disagreement with the audit finding. Action taken in response to finding: : This finding is linked to the reporting errors that many schools seem to be experiencing with their clearinghouse program length reporting. While our program length for a bachelor?s degree is 60 months, the average completion time nationally is 5 years. In order to eliminate errors with aid eligibility, the Registrar set up an automated process that assigns the Anticipated Graduation Date for 5 years from the initial term of entry. NCU has followed this same process for the past 20 years, and it has never raised any concerns. This is a simple time-saving process that eliminates the need to update the Anticipated Graduation date manually for each student who does not graduate within 4 years prior to running the monthly enrollment reports for NSC. As a member of many national organizations, we continue to monitor this reporting challenge as a university to try to reconcile how to report program length for aid eligibility and program length for clearinghouse compliance. In addition, a quality check process is being developed to ensure graduation dates or enrollment timelines are reported accurately to NSLDS. This work is being completed in tandem with our Registrar?s Office who reports to NSLDS through the National Clearinghouse. Name of the contact person responsible for corrective action Rachel Wendorf, Director of Student Financial Services Planned completion date for corrective action plan: In process

Categories

Reporting Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 48431 2022-003
    Significant Deficiency Repeat
  • 48432 2022-004
    Significant Deficiency Repeat
  • 48433 2022-005
    Significant Deficiency Repeat
  • 48434 2022-005
    Significant Deficiency Repeat
  • 51845 2022-003
    Significant Deficiency Repeat
  • 51846 2022-004
    Significant Deficiency Repeat
  • 51847 2022-002
    Significant Deficiency
  • 51848 2022-003
    Significant Deficiency Repeat
  • 51849 2022-004
    Significant Deficiency Repeat
  • 51850 2022-002
    Significant Deficiency
  • 51851 2022-003
    Significant Deficiency Repeat
  • 51852 2022-004
    Significant Deficiency Repeat
  • 51853 2022-002
    Significant Deficiency
  • 51854 2022-002
    Significant Deficiency
  • 624873 2022-003
    Significant Deficiency Repeat
  • 624874 2022-004
    Significant Deficiency Repeat
  • 624875 2022-005
    Significant Deficiency Repeat
  • 624876 2022-005
    Significant Deficiency Repeat
  • 628286 2022-002
    Significant Deficiency
  • 628287 2022-003
    Significant Deficiency Repeat
  • 628288 2022-004
    Significant Deficiency Repeat
  • 628289 2022-002
    Significant Deficiency
  • 628290 2022-003
    Significant Deficiency Repeat
  • 628291 2022-004
    Significant Deficiency Repeat
  • 628292 2022-002
    Significant Deficiency
  • 628293 2022-003
    Significant Deficiency Repeat
  • 628294 2022-004
    Significant Deficiency Repeat
  • 628295 2022-002
    Significant Deficiency
  • 628296 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.12M
84.063 Federal Pell Grant Program $1.84M
84.425 Education Stabilization Fund $939,190
84.038 Federal Perkins Loan Program $599,597
84.033 Federal Work-Study Program $82,919
84.007 Federal Supplemental Educational Opportunity Grants $67,642