Finding Text
Condition: The University did not properly report student enrollment changes for students who
received federal student aid to the National Student Loan Data System (NSLDS).
Criteria or specific requirement: Per 2 CFR 200.303, nonfederal entities receiving federal awards are
required to establish and maintain internal controls designed to reasonably ensure compliance with
federal laws, regulations, and program compliance requirements. Additionally, 34 CFR 685.309,
requires that enrollment status changes for students be reported to NSLDS within 30 days of becoming
aware of the status change or in its next scheduled enrollment submission if the scheduled submission
is within 60 days. Regulations require the status include an accurate effective date. In addition,
regulations require that an institution make necessary corrections and return the records within 10 days
for any roster files that don’t pass the NSLDS enrollment reporting edits.
Context: During our testing of 40 students, we identified 2 students tested whose enrollment status
was either not timely reported, not updated to graduate from withdrawn, not reported with correct
enrollment status, not reported with correct effective date, or a combination of the above to NSLDS.
Questioned costs: N/A
Cause: The University didn't have proper procedures in place to verify the students’ status in NSLDS
matched the institutions records in a timely manner.
Effect: The University was not in compliance with the requirements to properly report student
enrollment data correctly. Incorrect dates submitted to NSLDS may be used to determine the grace
period for the repayment of interest of outstanding Title IV student loans.
Repeat finding: No
Recommendation: We recommend the University review current processes for reporting to NSLDS
and implement procedures to ensure submissions are reported timely and accurately.
Views of responsible officials: Management agrees with the finding and has developed a plan to
correct the finding.