Finding Text
Finding No.: 2024-004 – Enrollment Reporting- Significant deficiency Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster ALN Number: VariousFederal Award Year: July 1, 2023 – June 30, 2024 Criteria: In accordance with 2 CFR 200.303(a), non-Federal entities must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with the guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committeeof Sponsoring Organizations of the Treadway Commission (COSO). Conditions Found: During our audit we found 2 of 30 students selected for testing whose change in enrollment status was transmitted to NSLDS. However, only their campus enrollment status change was appropriately updated, and their program status was not, resulting in a discrepancy in enrollment status. The engagement team notes that for these exceptions, the College appropriately reported the status change, however, failed to identify the change was only made at the campus level. Cause: The cause of this noncompliance was a control deficiency in which the institution has a lack of review on the student changes within NSLDS after submission to NSC. The engagement team notes the submission is input to NSC which is then transmitted to NSLDS automatically, but the College did not review to ensure changes were appropriately made on both camp us enrollment and programenrollment and therefore there is a lack of review after submission. Possible Asserted Effect: Failure to perform review procedures over enrollment reporting changes could result in reporting more or less students enrolled receiving financial aid than what true enrollment is which could result in students receiving aid when not required or failure to receive aid from the Department of Education. Questioned Costs: Not applicable. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Repeat Finding: The conditions found do not constitute a repeat finding from the prior year. Recommendation: We recommend that management inquire with NSC as to why this enrollment change did not show on both enrollment reports at NSLDS and implement a manual review process for future years to review and ensure NSC properly updates NSLDS on both level reports for withdrawal and graduated students. Views of Responsible: OfficialsRecommendation accepted. Please refer to corrective action plan.