Finding Text
Criteria or Specific Requirement:
Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).
Compliance – The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to NSLDS within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status.
Condition:
For students participating in the Federal Direct Loan and Pell Grant programs, the enrollment status change to withdrawal was not timely reported to NSLDS.
Questioned costs: None
Context: This condition occurred in 1 out of 17 students tested.
Cause: The University’s processes and controls did not ensure that student status changes were properly and timely reported to NSLDS.
Effect: The NSLDS system is not updated with the student information which can cause overawarding should the student transfer to another institution and the students may not properly enter the repayment period.
Repeat Finding: No
Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations.
Views of responsible officials: There is no disagreement with the audit finding.