Finding Text
Finding 2024-005 – Special Tests – Enrollment Reporting — Material Weakness
Department of Education
Student Financial Assistance Cluster
Assistance Listing No. 84.268 (Federal Direct Student Loans), 84.063 (Federal Pell Grant Program)
Federal award year 2023-2024
Criteria: Under the Direct Loan programs, institutions are required to report student enrollment data via the National Student Loan Data System (NSLDS) using the Enrollment Reporting Roster file or Enrollment Maintenance page at least every 60 days. The reporting includes verification of enrollment data and communication of changes in student enrollment status within 60 days. Institutions are responsible for timely and accurate reporting, whether they report directly to the National Student Loan Data System (NSLDS) or through a third-party servicer.
Condition: Student status changes were not reported accurately to NSLDS.
Cause: The audit team noted that the University does not appear to have a control in place to identify in a timely manner inaccurate information that was provided to the NSLDS by their third party servicer.
Effect or potential effect: The effect of the noncompliance is that NSLDS does not have timely and accurate enrollment. As noted in the Compliance Supplement, "The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions" which is not possible when the University does not provide accurate information.
Questioned costs: None
Context: We selected 40 students to evaluate reporting of status changes to NSLDS. Out of 40 students selected, 21 students who had graduated were reported to NSLDS as withdrawn, and two students, one who had graduated and one who had withdrawn, had no record reported to NSLDS.
Identification as a repeat finding, if applicable: Not applicable.
Recommendation: RSM recommends that the University implement a process to review information provided to NSLDS for accuracy in a timely manner such that the NSLDS receives accurate information within 60 days of status changes.
View of responsible officials: Management agrees with this finding. See corrective action plan.