Finding 547381 (2024-002)

Finding No. 2024–002 – Special Tests and Provisions – Enrollment Reporting Federal Program Name Student Financial Assistance Programs Cluster – Federal Pell Grant Program (PELL) Assistance Listing 84.063 Federal Direct Student Loan Program (DL) Assistance Listing 84.268 Name of Federal Agency U.S. Department of Education (USDE) Category Internal Control/Compliance Compliance Requirement Special Tests and ProvisionsCriteria 34 CFR 685.309 (b)(2)(ii) states that unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, a school must notify the Secretary within 30 days after the date the school discovers that; a loan under title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the school, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or a student who is enrolled at the school and who received a loan under title IV of the Act has changed his or her permanent address. The National Student Loan Data System (NSLDS) is the U.S. Department of Education’s central database for federal student aid disbursed under Title IV of the Higher Education Act of 1965 (HEA), as amended. Among other things, NSLDS monitors the programs of attendance and the enrollment status of Title IV aid recipients. The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website, as stated in 34 CFR 690.83 (b) (2) for Federal Pell Grant Program and 34 CFR section 685.309 for Federal Direct Student Loan Program. A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by USDE. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Enrollment information must be reported within 30 days whenever attendance changes for students, unless a roster will be submitted within 60 days. These changes include reductions or increases in attendance levels, withdrawals, graduations, or approved leaves-of- absence. Condition In testing compliance with the enrollment reporting requirements, from twenty-five (25) cases of students examined, we found that in one (1) instance, the University did not report to the National Student Loan Data System (NSLDS) the change in status of the student within the required 60 days period. Cause Despite having sent the file on time, the Registrar’s Office did not verify that it was transmitted correctly. Subsequently, while reviewing the file, it was identified that the system did not recognized the status change of “official withdrawal” instead, the status was changed to “Three- Quarter”. The file was submitted again with the correction, untimely, therefore, the University did not comply with the enrollment reporting requirements. Effect As a result of this condition, the USDE was prevented the use of accurate reporting data, which is critical for the effective administration of the Direct Loan Program and for USDE budgetary policy analysis. Identification of a Repeat Finding This is a repeat finding from the immediate previous audit. Finding 2023-002. Questioned Cost None Context Of the one hundred and ninety-eight (198) status changes for 2024, we selected twenty-five (25) students for testing and noted one (1) instance in which the University did not comply with the enrollment reporting requirements. Recommendation Management should reinforce its monitoring of the services provided by the National Student Clearinghouse to ensure they comply with the agreed upon reporting timeframe. The University should enhance both electronic and manual procedures to ensure enrollment status changes are timely and accurately reported to NSDLS. Views of Responsible Officials and Planned Corrective Actions Management of the University agrees with this finding. Please refer to the corrective action plan on pages 61-63.