Finding 519535 (2024-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-17
Audit: 338574
Organization: Life University, Inc. (GA)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to report changes in student enrollment status accurately and on time, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 685.309, which mandates reporting changes within 30 days.
  • Recommended Follow-Up: Implement new procedures to ensure timely reporting of student status changes to avoid future compliance issues.

Finding Text

Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268) Criteria or Specific Requirement: N. Special Tests and Provisions – Enrollment Reporting: Federal regulation 34 CFR 685.309 states that the institution shall accurately report a change in a student’s enrollment status directly to the lender or guarantee agency within 30 days if a student has graduated, withdrawn, or ceased to be enrolled (or failed to enroll) at least half-time and the school does not expect its next Roster File to NSLDS within 60 days. Condition: The University did not report students’ status changes accurately and within the required timeframe. Cause: Administrative oversight. Effect or Possible Effect: The University was not in compliance with required federal guidelines. Questioned Costs: None. Context: Program Level: Based on a sample of 25 students, 1 student’s program begin date was not accurately reported to the NSLDS. Campus Level: Based on a sample of 25 students, 2 students selected were not reported to the NSLDS within the required timeframe. Identification of Repeat Finding: This is a new finding for FY2024. Recommendation: The University should implement procedures to ensure that student status changes are reported in a timely manner. Views of Responsible Officials: The University will report to the National Student Clearing (NSC) House using regularly scheduled enrollment reports every 30 days. Suppose a student’s enrollment status is not captured in the regularly scheduled enrollment reports with the NSC. In that case, the enrollment reporting will be reported directly to the National Student Loan Database Service(NSLDS), such as after the end of the term once grades are processed. The enrollment reporting in which a student receives a failing grade of all “Fs” for a quarter will be adjusted to meet the reporting time frame.

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

  • 519534 2024-002
    Significant Deficiency
  • 519536 2024-002
    Significant Deficiency
  • 519537 2024-002
    Significant Deficiency
  • 519538 2024-003
    Significant Deficiency
  • 519539 2024-004
    Significant Deficiency
  • 1095976 2024-002
    Significant Deficiency
  • 1095977 2024-002
    Significant Deficiency
  • 1095978 2024-002
    Significant Deficiency
  • 1095979 2024-002
    Significant Deficiency
  • 1095980 2024-003
    Significant Deficiency
  • 1095981 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $106.23M
84.063 Federal Pell Grant Program $2.28M
84.033 Federal Work-Study Program $860,219
84.007 Federal Supplemental Educational Opportunity Grants $248,363
84.038 Federal Perkins Loans $0