Finding 548641 (2024-008)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351972
Organization: The Shaw University, Inc. (NC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to report student enrollment status changes to the NSLDS website on time, affecting compliance with federal requirements.
  • Impacted Requirements: Enrollment reporting must be accurate and timely for both Campus Level and Program Level data, as mandated by federal regulations.
  • Recommended Follow-Up: Enhance internal controls and implement a monthly audit to ensure all enrollment changes are reported accurately and within the required timeframe.

Finding Text

Identification of Federal Program(s) – Student Financial Assistance Cluster (ALN’s 84.063, 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation) – Enrollment Reporting – The University 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 University becomes aware of the change in enrollment status. There are two categories of enrollment information: “Campus Level” and “Program Level,” each with separate record types that need to be reported accurately. Institutions are responsible for accurately reporting the significant data elements under the Campus-Level Record and Program-Level Record that ED considers high risk. Additionally, institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. As with any school/servicer arrangement for the administration of the Title IV programs, if the school uses a third party to meet the NSLDS enrollment reporting requirements, it is the school that must ensure that enrollment information is submitted timely, accurately, and completely (34 CFR 685.309(b), 685.210(c), and 690.83(b)(2)). Condition – For certain students selected for testing who graduated or withdrew during the year, the University did not submit status change notification or failed to submit timely notification to the NSLDS website. Cause – Insufficient internal controls and administrative oversight with respect to enrollment reporting requirements. Effect or Potential Effect¬ – The University is not in compliance with enrollment reporting requirements. Failure to promptly report accurate and timely changes in enrollment status may adversely impact the repayment status for student loan borrowers. Questioned Costs – None. Context – The University did not accurately report Campus Level enrollment data elements to the NSLDS website for 1 of 25 Federal Pell Grant and Federal Direct Student Loan recipients selected for testing that had a reduction or increase in attendance levels, graduated, withdrew, dropped out, or enrolled but never attended during the fiscal year. The University did not accurately report Program Level enrollment data elements to the NSLDS website for 6 of 25 Federal Pell Grant and Federal Direct Student Loan recipients selected for testing that had a reduction or increase in attendance levels, graduated, withdrew, dropped out, our enrolled but never attended during the fiscal year. Identification of Repeat Finding – No similar findings noted in the prior year. Recommendation¬¬ – We recommend that the University enhance its internal controls, policies, and procedures over the applicable compliance requirements of the Enrollment Reporting to ensure that all Campus Level and Program Level data is reported accurately and status changes are submitted to the NSLDS website within the required timeframe. Views of Responsible Officials – The University concurs with the finding and will review and revise its procedures for the frequency of NSLDS reporting to ensure accurate and timely reporting of enrollment changes. The University will implement a monthly enrollment audit to ensure that any change in enrollment status is identified in a timely manner and reported to NSLDS

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 548629 2024-004
    Significant Deficiency Repeat
  • 548630 2024-004
    Significant Deficiency Repeat
  • 548631 2024-004
    Significant Deficiency Repeat
  • 548632 2024-005
    Significant Deficiency
  • 548633 2024-006
    Significant Deficiency
  • 548634 2024-006
    Significant Deficiency
  • 548635 2024-006
    Significant Deficiency
  • 548636 2024-006
    Significant Deficiency
  • 548637 2024-007
    Significant Deficiency
  • 548638 2024-007
    Significant Deficiency
  • 548639 2024-007
    Significant Deficiency
  • 548640 2024-008
    Significant Deficiency
  • 1125071 2024-004
    Significant Deficiency Repeat
  • 1125072 2024-004
    Significant Deficiency Repeat
  • 1125073 2024-004
    Significant Deficiency Repeat
  • 1125074 2024-005
    Significant Deficiency
  • 1125075 2024-006
    Significant Deficiency
  • 1125076 2024-006
    Significant Deficiency
  • 1125077 2024-006
    Significant Deficiency
  • 1125078 2024-006
    Significant Deficiency
  • 1125079 2024-007
    Significant Deficiency
  • 1125080 2024-007
    Significant Deficiency
  • 1125081 2024-007
    Significant Deficiency
  • 1125082 2024-008
    Significant Deficiency
  • 1125083 2024-008
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.65M
84.063 Federal Pell Grant Program $3.26M
84.031 Title III Strengthening Historically Black Colleges and Universities Program $2.89M
11.028 Connecting Minority Communities Pilot Program $1.74M
84.007 Federal Supplemental Educational Opportunity Grants $608,967
11.802 Minority Business Resource Development $275,525
84.033 Federal Work-Study Program $273,783
93.391 Hbcu Health Data $180,020
15.932 Preservation of Historic Structures on the Campuses of Historically Black Colleges and Universities (hbcus). $138,859
93.575 Child Care and Development Block Grant $115,448
47.076 Catalyst: Increasing Access and Inclusiveness in Cybersecurity $71,092
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $69,195
45.309 Museum Grants for African American History and Culture $58,387
15.904 Historic Preservation Fund Grants-in-Aid $57,103
47.076 Ria Antimicrobial Resistance $43,417
93.391 Live Well Wake $15,735
84.349 Early Childhood Educator Professional Development $3,338