Finding 538255 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-27

AI Summary

  • Core Issue: The Seminary failed to update the NSLDS with accurate enrollment status changes for 2 out of 11 sampled students.
  • Impacted Requirements: This noncompliance violates federal grant reporting requirements, specifically the 60-day notification rule.
  • Recommended Follow-Up: The Seminary should enhance its policies and procedures to ensure timely and accurate enrollment reporting to NSLDS.

Finding Text

2024-001 – Special Tests and Provisions – Enrollment Reporting Federal Assistance Listing Number: 84.268, 84.038 and 84.033 Name of Program or Cluster: Student Financial Aid Cluster Agency: U.S. Department of Education Criteria: Princeton Theological Seminary (the “Seminary”) is required to update students’ statuses on the National Student Loan Data System (“NSLDS”) website if they graduate, withdraw or have an increase/decrease in attendance level during the year within 60 days of the date the Seminary becomes aware of the change in enrollment status. Condition: The Seminary did not submit an accurate status change notification to the NSLDS website for two out of eleven students sampled from a total population of 110 students who graduated, withdrew or had an increase/decrease in attendance level during the year. Cause: Management oversight. Effect: Noncompliance with OMB federal grant compliance requirements Questioned Costs: None. Repeat Finding: No. Recommendation: The Seminary should properly follow its policies and procedures over enrollment reporting to ensure that all status changes are submitted to NSLDS website accurately and within the required timeframe. Views of Responsible Official: See corrective action plan attached.

Corrective Action Plan

To: PKF O’Connor Davies LLP, U.S. Department of Education From: Princeton Theological Seminary Jean Hall, Vice President for Finance & CEO Date: March XX, 2025 Subject: Princeton Theological Seminary - Corrective Action Plan for the Year Ending June 30, 2024 2024-001 Special Tests and Provisions – Enrollment Reporting Federal Assistance Listing Number: 84.268, 84.038, and 84.033 Name of Program or Cluster: Student Financial Aid Cluster Agency: U.S. Department of Education Criteria: Princeton Theological Seminary (the “Seminary”) is required to update students’ statuses on the National Student Loans Data System (“NSLDS”) website if they graduate, withdraw or have an increase/decrease in attendance level during the year within 60 days of the date the Seminary becomes aware of the change in enrollment status. Condition: The Seminary did not submit an accurate status change notification to the NSLDS website for two out of eleven students sampled from a total population of 110 students who graduated, withdrew or had an increase/decrease in attendance level during the year. Cause: Management oversight. Effect: Noncompliance with OMB federal grant compliance requirements. Questioned Costs: None. Repeat Finding: Yes. Recommendation: The Seminary should properly follow its policies and procedures over enrollment reporting to ensure that all status changes are submitted to the NSLDS website accurately and within the required timeframe. Views of Responsible Officials: Princeton Theological Seminary’s management acknowledges these two errors and agrees with the requirement to update students’ enrollment status changes as they occur and in a timely manner. The Seminary’s policy mandates reporting every thirty (30) days, and in these two occurrences, that did not happen. We will review all current student files to ensure compliance. Our Corrective Action Plan to prevent further errors includes implementing a monitoring and verification process of the reporting through the National Student Clearinghouse to the National Student Loan Data System (NSLDS). Further, our Registrar’s office will be required to promptly review and resolve any discrepancies noted in the NSLDS or National Student Clearinghouse error reporting.

Categories

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

Other Findings in this Audit

  • 538256 2024-001
    Significant Deficiency
  • 538257 2024-001
    Significant Deficiency
  • 1114697 2024-001
    Significant Deficiency
  • 1114698 2024-001
    Significant Deficiency
  • 1114699 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $894,340
84.038 Federal Perkins Loan Program $807,896
84.033 Federal Work-Study Program $31,364