Finding 548673 (2024-005)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351998
Organization: Stevenson University, Inc. (MD)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to accurately report significant enrollment data to the NSLDS for students who graduated, withdrew, or changed attendance levels.
  • Impacted Requirements: Compliance with federal enrollment reporting regulations, including timely updates and corrections, was not met, risking student loan repayment statuses.
  • Recommended Follow-Up: Enhance internal controls and procedures for enrollment reporting, ensuring timely submissions and corrections to meet federal standards.

Finding Text

Federal Program Information: Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions - 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,” both of which need to be reported accurately and have separate record types. 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. Per the Federal Student Aid Handbook, schools are required to certify enrollment for all students who are included on their roster file scheduled at least every two months, and within 15 days of the date that NSLDS sends a roster file to the school or its third-party servicer. Any errors identified and returned by NSLDS in an Error/Acknowledgement file should be corrected and resubmitted within 10 days. Condition: The University did not accurately report certain significant data elements to the NSLDS website for certain students who graduated, withdrew, or had an increase/decrease in attendance level during the year. Additionally, the University’s fiscal year SCHER1 report included an instance in which the error record was not corrected within the required timeframe. Cause: Administrative oversight and insufficient internal control. Effect or Potential Effect: The University is not in compliance with enrollment reporting compliance 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: We noted the following exceptions as a result of our procedures: • For 2 of 40 campus level records tested, one or more high risk data elements were not accurately reported. • For 18 of 40 program level records tested, one or more high risk data elements were not accurately reported. • For 1 of 8 errors records identified during the fiscal year, the error was not corrected within the required timeframe. Identification of Repeat Finding: This is a repeat of prior year finding 2023-009. Recommendation: We recommend the University enhance its procedures and internal controls over enrollment reporting to ensure that all status changes are submitted to the NSLDS website within the required timeframe and that error records are corrected and submitted timely, consistent with federal regulations. Views of Responsible Officials and Planned Corrective Actions: The University Registrar has worked to develop and implement a plan to ensure appropriate cross-training, position backup, and a system of proper checks and balances to improve quality control and continuity in executing core functions within the Registrar's Office. To enhance our efforts on this front, the University Registrar will implement additional training measures and reporting SOPs to ensure all status changes and error records are submitted to the NSC/NSLDS website within the required timeframe. These efforts will strengthen accuracy and overall compliance with reporting requirements. Enrollment reporting remains a critical focus of this initiative.

Corrective Action Plan

Name of Responsible Individual: Montague Blount, Registrar Corrective Action: The University Registrar has worked to develop and implement a plan to ensure appropriate cross-training, position backup, and a system of proper checks and balances to improve quality control and continuity in executing core functions within the Registrar's Office. To enhance our efforts on this front, the University Registrar will implement additional training measures and reporting SOPs to ensure all status changes and error records are submitted to the NSC/NSLDS website within the required timeframe. These efforts will strengthen accuracy and overall compliance with reporting requirements. Enrollment reporting remains a critical focus of this initiative. Anticipated Completion Date: June 30, 2025

Categories

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

Other Findings in this Audit

  • 548665 2024-002
    Significant Deficiency Repeat
  • 548666 2024-006
    Significant Deficiency Repeat
  • 548667 2024-007
    - Repeat
  • 548668 2024-001
    Significant Deficiency Repeat
  • 548669 2024-002
    Significant Deficiency Repeat
  • 548670 2024-003
    Significant Deficiency
  • 548671 2024-001
    Significant Deficiency Repeat
  • 548672 2024-002
    Significant Deficiency Repeat
  • 548674 2024-006
    Significant Deficiency Repeat
  • 548675 2024-002
    Significant Deficiency Repeat
  • 548676 2024-004
    Significant Deficiency Repeat
  • 548677 2024-005
    Significant Deficiency Repeat
  • 548678 2024-006
    Significant Deficiency Repeat
  • 1125107 2024-002
    Significant Deficiency Repeat
  • 1125108 2024-006
    Significant Deficiency Repeat
  • 1125109 2024-007
    - Repeat
  • 1125110 2024-001
    Significant Deficiency Repeat
  • 1125111 2024-002
    Significant Deficiency Repeat
  • 1125112 2024-003
    Significant Deficiency
  • 1125113 2024-001
    Significant Deficiency Repeat
  • 1125114 2024-002
    Significant Deficiency Repeat
  • 1125115 2024-005
    Significant Deficiency Repeat
  • 1125116 2024-006
    Significant Deficiency Repeat
  • 1125117 2024-002
    Significant Deficiency Repeat
  • 1125118 2024-004
    Significant Deficiency Repeat
  • 1125119 2024-005
    Significant Deficiency Repeat
  • 1125120 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $28.53M
84.063 Federal Pell Grant Program $5.55M
84.007 Federal Supplemental Educational Opportunity Grants $306,787
84.033 Federal Work-Study Program $267,710