Finding 52054 (2022-004)

Significant Deficiency
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-01

AI Summary

  • Core Issue: A student's enrollment changes were not reported correctly to NSLDS due to a mismatch in name and social security number.
  • Impacted Requirements: Compliance with reporting requirements for Pell grants and Direct loans is at risk, affecting the College's standing with federal regulations.
  • Recommended Follow-up: The College should verify the student's social security details and enhance internal procedures to catch and correct reporting errors promptly.

Finding Text

Finding Reference: 2022-004 Federal Agency: U.S. Department of Education Federal Program: Student Financial Aid Cluster Compliance Requirement: Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance and Noncompliance Criteria: Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the National Student Loan Data System (NSLDS). Statement of Condition: One student?s enrollment changes were not properly reported to NSLDS and this was not initially addressed by the College. Statement of Cause: The students name and social security number as submitted by the institution do not agree to the information that in NSLDS and thus the submission was rejected. Possible Asserted Effect: The College may not in compliance with reporting required to NSLDS in all circumstances. Questioned Costs: None noted. Context: A sample of 25 students were selected for enrollment testing and 1 student was identified with reporting errors. NSLDS is utilized by all Institutions. The student?s information as reported in the College?s system was submitted. However, there were errors in the submission because of a conflict in name due to an incorrect social security number. Since all Institutions utilize NSLDS at some point a school (perhaps not the College) submitted the social security number provided by this student with a different name. Repeat Finding: This is not a repeat finding. Recommendation: We recommend that the College contact the student to obtain a copy of their social security card to confirm the name and number to correct this situation. The College should also review its internal procedures to ensure controls are in place to timely identify reporting discrepancies and make corrections as necessary. Views of Responsible Officials and Planned Corrective Actions: Management acknowledges and agrees with the findings. The College has developed a process to identify and correct discrepancies.

Corrective Action Plan

Corrective Action Plan Monday, February 20, 2023 Harrisburg Area Community College respectfully submits the following corrective action plan for the year ended June 30, 2022. The findings from the June 30, 2022 audit report dated February 20, 2023 schedule of findings and questioned cost are discussed below. The findings are numbered consistently with the numbers assigned in the schedule. Agency: (Federal Agency per Finding) U.S. Department of Education Audit Period: July 1, 2021 ? June 30, 2022 Name and Address of independent public accounting firm: Smith Elliott Kearns & Company, LLC, Certified Public Accountants & Consultants 804 Wayne Avenue Chambersburg, Pennsylvania Finding Type: (per Finding) Student Financial Aid Cluster: Significant Deficiency in Internal Control over Compliance and NonCompliance Internal Control Type: (please choose the type per the finding) o Material Weakness(es) ? Significant Deficiencies Audit Finding No.: 2022-004 Federal Program: (per Finding) Student Financial Aid Cluster Compliance Requirement: (per Finding) Reporting Audit Finding Title/Statement of Condition: (copy from audit findings documentation) Significant Deficiency in Internal Control over Compliance and NonCompliance Institutions are required to report enrollment information under the Pell grant and direct loan programs via the National Student Loan Data System (NSLDS). Auditor Recommendation: (copy from audit findings documentation) We recommend that the College contact the student to obtain a copy of their social security card to confirm the name and number to correct this situation. The College should also review its internal procedures to ensure controls are in place to timely identify reporting discrepancies and make corrections as necessary Specific steps to be taken to correct the situation [including a timetable for performance of the CAP] or reason why corrective action is not necessary (including disagreement with the finding). ? The College contacted the student (via email) on Jan. 16, 2023, to verify their information. The student did not respond. ? The College sent a follow up communication on Feb. 13, 2023. ? If the student does not respond by close of business this week (Friday, Feb. 24, 2023), then a member of the Registration and Records unit will contact the student via phone. ? If the student does not respond, a hold will be placed on the student account. The student will not be able to perform any transition until the requirement is met. *The case in question is a unique situation in which the College does not know if the student provided the wrong SSN to HACC or the previous institution, and there is no way that the College would have known that information prior to the reject from the National Student Clearinghouse. At this point the College does not know if the student provided the wrong information to HACC or their prior institution because the student has not responded to the College?s outreach. Moving forward, the College plans to contact students immediately AND place a hold on their accounts (immediately). In most cases, the holds prompt students into action that they would not otherwise take. Anticipated Completion Date: In process Name(s) and Title(s) of contact person(s) responsible for correction action: Dawn K Mull Director, Financial Accounting & Reporting Harrisburg Area Community College dkmull@hacc.edu

Categories

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

Other Findings in this Audit

  • 52055 2022-003
    Significant Deficiency Repeat
  • 52056 2022-004
    Significant Deficiency
  • 52057 2022-003
    Significant Deficiency Repeat
  • 52058 2022-003
    Significant Deficiency Repeat
  • 52059 2022-004
    Significant Deficiency
  • 52060 2022-004
    Significant Deficiency
  • 52061 2022-003
    Significant Deficiency Repeat
  • 628496 2022-004
    Significant Deficiency
  • 628497 2022-003
    Significant Deficiency Repeat
  • 628498 2022-004
    Significant Deficiency
  • 628499 2022-003
    Significant Deficiency Repeat
  • 628500 2022-003
    Significant Deficiency Repeat
  • 628501 2022-004
    Significant Deficiency
  • 628502 2022-004
    Significant Deficiency
  • 628503 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $32.82M
84.063 Federal Pell Grant Program $19.80M
84.048 Career and Technical Education -- Basic Grants to States $1.14M
84.007 Federal Supplemental Educational Opportunity Grants $774,268
97.025 National Urban Search and Rescue (us&r) Response System $439,003
93.558 Temporary Assistance for Needy Families $420,015
93.434 Every Student Succeeds Act/preschool Development Grants $301,494
84.033 Federal Work-Study Program $124,516
84.425 Education Stabilization Fund $57,905
47.076 Education and Human Resources $32,644
17.245 Trade Adjustment Assistance $31,220
94.006 Americorps $26,006