Finding 522789 (2024-001)

2024-001 - Status Change Reporting Issues. Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Special Tests and Provisions). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Number 84.063; Award Number P063P234637. Criteria. Institutions are required to report enrollment information under the Pell grant program via the National Student Loan Data System (NSLDS) (OMB No. 1845-0035) (Pell, 34 CFR 690.83(b)(2)). Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website. There are two categories of enrollment information; “Campus Level” and “Program Level,” both of which need to be reported accurately and have separate record types. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition. During our testing of the Pell Grant program, we selected a sample of forty students to test for timeliness and accurate reporting of student status changes to the National Student Loan Data System (NSLDS). Of the forty tested, nine were out of compliance based on the criteria outlined in the Department of Education's Code of Federal Regulations at 34 CFR 690.83(b)(2). Cause. The College did not have a policy for administratively withdrawing students who ceased attending classes, which hindered their ability to report the student status changes to NSLDS in a timely manner. Effect. As a result of this condition, the NSLDS system may not be updated with correct student information, which may cause over subsequent awarding issues or loan repayment term discrepancies. Questioned Costs. No costs are required to be questioned as a result of this finding, insomuch as no unallowable expenditures were noted. Recommendation. We recommend that the College establish a withdrawal policy to improve the accuracy of their status change reporting. We also recommend enhanced processes for reviewing and verifying the accuracy of data submissions to NSLDS. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.