Finding 52434 (2022-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-11
Audit: 52798
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: The College failed to report 27 out of 151 enrollment statuses to NSLDS on time, leading to material noncompliance with federal requirements.
  • Impacted Requirements: Enrollment information for Pell grants and Direct/FFEL loans must be accurately reported to NSLDS, including timely updates and verifications of student statuses.
  • Recommended Follow-Up: Implement a manual review process for enrollment data to ensure compliance, especially when software issues arise, and verify all student statuses awarded funds under these programs.

Finding Text

2022-003 Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.007, 84.033, 84.063, and 84.268 Federal Award Number: P063P217727, P268K227727, P007A219116, P033A219116 Program Name: Student Financial Assistance Cluster Special Tests and Provisions ? Enrollment Reporting Material Noncompliance and Material Weakness in Internal Control over Compliance Criteria - OMB Compliance Supplement, OMB No. 1845-0035 ? Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). 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 which the financial aid administrator can access for the auditor. The data on the institutions? Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. 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 over the NSLDS reporting requirements, we noted that 27 enrollment status certifications out of 151 enrollment certifications tested were not reported to NSLDS in the required timeframe. In addition, it was noted that 57 enrollment statuses out of 151 enrollment statuses tested did not agree to the enrollment status that was submitted to NSLDS. Further, we noted that students who were not enrolled at the College have no relevant program information or students who previously withdrew from classes in earlier years have outdated CIP information. Students who were previously enrolled and withdrew prior to implementation of the new software show as ?Withdrawn? and students who were not previously enrolled have no information and show as ?N/A?. Cause - The College did not have adequate and/or functioning controls in place to ensure the reporting of enrollment information under the Pell grant and Direct and FFEL loan programs via NSLDS was timely. Due to the way the College?s new software pulls the roster information to send to the Clearing House, the Clearing House is unable to push the data to NSLDS. While the College has been working with the software vendor to correct this issue, the reporting process for NSLDS stopped in the current year. Management did not implement other processes or procedures to deal with the issues encountered with the software to fulfill their responsibility to ensure accurate and timely reporting and submission of student status during the year. Effect - The College is not in compliance with the federal enrollment reporting requirements described in the OMB Compliance Supplement and required by the Department of Education. The issue is pervasive and uncorrected and is considered a material noncompliance and a material breakdown in the controls over compliance. Questioned Costs ? None reported Context/Sampling - The College disbursed financial aid to approximately 244 students in the 2021- 2022 school year. A non-statistical sampling of 60 students with 151 individual statuses collectively were selected for testing. Repeat Finding - Yes, prior year finding 2020-002 and 2021-003 Recommendation - The College should implement a process to 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, regardless of whether or not it has to be done manually in situations where the software is not reporting correctly. Management should immediately go through all students that were awarded funds under this program to ensure their status and all relevant student data is correct on NSLDS. View of Responsible Officials - Management agrees with this finding and will implement the recommendations.

Categories

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

Other Findings in this Audit

  • 42657 2022-007
    Material Weakness
  • 52432 2022-003
    Material Weakness Repeat
  • 52433 2022-004
    Material Weakness Repeat
  • 52435 2022-004
    Material Weakness Repeat
  • 52436 2022-003
    Material Weakness Repeat
  • 52437 2022-004
    Material Weakness Repeat
  • 52438 2022-003
    Material Weakness Repeat
  • 52439 2022-004
    Material Weakness Repeat
  • 52440 2022-005
    Significant Deficiency Repeat
  • 52441 2022-006
    Significant Deficiency
  • 52442 2022-007
    Material Weakness
  • 52443 2022-005
    Significant Deficiency Repeat
  • 52444 2022-006
    Significant Deficiency
  • 52445 2022-007
    Material Weakness
  • 52446 2022-005
    Significant Deficiency Repeat
  • 52447 2022-006
    Significant Deficiency
  • 52448 2022-007
    Material Weakness
  • 52449 2022-005
    Significant Deficiency Repeat
  • 52450 2022-006
    Significant Deficiency
  • 619099 2022-007
    Material Weakness
  • 628874 2022-003
    Material Weakness Repeat
  • 628875 2022-004
    Material Weakness Repeat
  • 628876 2022-003
    Material Weakness Repeat
  • 628877 2022-004
    Material Weakness Repeat
  • 628878 2022-003
    Material Weakness Repeat
  • 628879 2022-004
    Material Weakness Repeat
  • 628880 2022-003
    Material Weakness Repeat
  • 628881 2022-004
    Material Weakness Repeat
  • 628882 2022-005
    Significant Deficiency Repeat
  • 628883 2022-006
    Significant Deficiency
  • 628884 2022-007
    Material Weakness
  • 628885 2022-005
    Significant Deficiency Repeat
  • 628886 2022-006
    Significant Deficiency
  • 628887 2022-007
    Material Weakness
  • 628888 2022-005
    Significant Deficiency Repeat
  • 628889 2022-006
    Significant Deficiency
  • 628890 2022-007
    Material Weakness
  • 628891 2022-005
    Significant Deficiency Repeat
  • 628892 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $755,318
93.575 Child Care and Development Block Grant $469,489
84.268 Federal Direct Student Loans $423,894
17.259 Wia Youth Activities $177,822
84.002 Adult Education - Basic Grants to States $156,723
10.855 Distance Learning and Telemedicine Loans and Grants $125,397
17.258 Wia Adult Program $114,475
17.277 Workforce Investment Act (wia) National Emergency Grants $104,573
84.031 Higher Education_institutional Aid $75,998
84.425 Education Stabilization Fund $54,782
84.007 Federal Supplemental Educational Opportunity Grants $53,600
59.037 Small Business Development Centers $47,404
10.561 State Administrative Matching Grants for the Supplemental Nutrition Assistance Program $34,341
47.076 Education and Human Resources $31,440
21.027 Coronavirus State and Local Fiscal Recovery Funds $30,420
84.033 Federal Work-Study Program $12,549
17.278 Wia Dislocated Worker Formula Grants $11,684