Finding 559050 (2024-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-05-01
Audit: 355305
Organization: Knox College (IL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The College failed to report student enrollment changes to NSLDS on time for 3 out of 11 students tested.
  • Impacted Requirements: This noncompliance violates federal regulations requiring timely reporting of enrollment status changes within 30 to 60 days.
  • Recommended Follow-Up: The College should update its processes and controls to ensure timely and accurate reporting to NSLDS.

Finding Text

2024-003—Error in Reporting for National Student Loan Data System (NSLDS) U.S. Department of Education Student Financial Assistance Programs Cluster (Direct) Federal Direct Loan Program (84.268) Federal Award Year: 2023-2024 Repeat Finding: No Criteria The Code of Federal Regulations (34 CFR 685.309) requires 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. Regulations require the status include an accurate effective date. According to the NSLDS Enrollment Reporting Guide, a student’s Program-Level enrollment status should be reported with the same enrollment status as that student’s campus-level enrollment status for all programs the student is enrolled in at that location, even if the student is not currently taking coursework that applies to a particular program. If the student has withdrawn or graduated from an academic program, a “terminal enrollment status” of ‘W’ or ‘G,’ as appropriate, should be reported for that program, even if the student is still taking coursework applicable to other programs in which the student is enrolled. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure enrollment reporting is completed properly. Condition: The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Campus-Level enrollment status change to NSLDS. Out of the 11 students tested, we noted 3 students (28%) whose status change at the Program-Level and Campus-Level was not timely reported to NSLDS. The College did not have formally documented controls related to the process of enrollment reporting, which is required under Uniform Grant Guidance. Cause An additional submission to the NSLDS was required for the students who withdrew during the term to meet the reporting requirements that did not occur. The College noted that changes related to mid-term withdrawals are not completed until the end of the term, which is outside the allowable window of reporting noted above. Effect Noncompliance with federal regulations could result in the loss of future federal funding.   Context We tested 11 students who received federal student aid with enrollment changes. For each student tested, management provided documentation from NSLDS showing when the student’s status changed, and when it was reported. Out of the 11 students tested, we noted 3 students (28%) whose status change at the Program-Level and Campus-Level was not timely reported to NSLDS. Questioned costs There were no questioned costs with respect to this finding. Recommendation We recommend the College review current processes and implement updated processes and controls for reporting to NSLDS, implementing procedures to ensure submissions are reported timely and accurately. Views of responsible officials Management agrees with this finding. See corrective action plan.

Corrective Action Plan

Identifying Number: 2024-003 Finding: Error in Reporting for National Student Loan Data System (NSLDS) The College did not properly report the student enrollment change for students who received federal student aid to the NSLDS. The College did not timely report three students’ Program-Level or Campus-Level enrollment status change to NSLDS. Out of the 11 students tested, we noted 3 students (28%) whose status change at the Program-Level and Campus-Level was not timely reported to NSLDS. The College did not have formally documented controls related to the process of enrollment reporting, which is required under Uniform Grant Guidance. Corrective Actions Taken or Planned: The Registrar’s office is implementing new processes to provide timely filing of clearing house data. This process will be further improved with the transition from CX to J1 in summer 2025. Person Responsible: Patrick Hathaway, phathaway@knox.edu Anticipated completion date: March 2025

Categories

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 559045 2024-006
    Material Weakness
  • 559046 2024-006
    Material Weakness
  • 559047 2024-006
    Material Weakness
  • 559048 2024-006
    Material Weakness
  • 559049 2024-002
    Significant Deficiency
  • 559051 2024-004
    Significant Deficiency
  • 559052 2024-005
    Significant Deficiency
  • 559053 2024-006
    Material Weakness
  • 559054 2024-002
    Material Weakness
  • 559055 2024-002
    Material Weakness
  • 559056 2024-005
    Significant Deficiency
  • 559057 2024-002
    Significant Deficiency
  • 559058 2024-002
    Significant Deficiency
  • 559059 2024-004
    Significant Deficiency
  • 559060 2024-005
    Significant Deficiency
  • 559061 2024-002
    Material Weakness
  • 559062 2024-002
    Material Weakness
  • 1135487 2024-006
    Material Weakness
  • 1135488 2024-006
    Material Weakness
  • 1135489 2024-006
    Material Weakness
  • 1135490 2024-006
    Material Weakness
  • 1135491 2024-002
    Significant Deficiency
  • 1135492 2024-003
    Significant Deficiency
  • 1135493 2024-004
    Significant Deficiency
  • 1135494 2024-005
    Significant Deficiency
  • 1135495 2024-006
    Material Weakness
  • 1135496 2024-002
    Material Weakness
  • 1135497 2024-002
    Material Weakness
  • 1135498 2024-005
    Significant Deficiency
  • 1135499 2024-002
    Significant Deficiency
  • 1135500 2024-002
    Significant Deficiency
  • 1135501 2024-004
    Significant Deficiency
  • 1135502 2024-005
    Significant Deficiency
  • 1135503 2024-002
    Material Weakness
  • 1135504 2024-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.50M
84.063 Federal Pell Grant Program $1.74M
84.038 Federal Perkins Loan Program_federal Capital Contributions $532,544
84.042 Trio Student Support Services $399,630
84.007 Federal Supplemental Educational Opportunity Grants $294,425
84.217 Trio McNair Post-Baccalaureate Achievement $286,741
84.033 Federal Work-Study Program $196,911
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $54,852
47.070 Computer and Information Science and Engineering $33,795