Finding 565021 (2024-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-06-16

AI Summary

  • Core Issue: The Institute incorrectly reported enrollment status for 1 out of 16 students, violating federal requirements for timely enrollment reporting.
  • Impacted Requirements: Compliance with federal regulations on enrollment reporting is crucial for determining eligibility for financial aid and maintaining accurate student records.
  • Recommended Follow-Up: Reinforce the need for accurate enrollment reporting and review internal controls to prevent future errors.

Finding Text

Finding #2024-001 – Significant Deficiency and Other Noncompliance. Applicable federal program: U. S. Department of Education, Student Financial Assistance Programs Cluster, Assistance Listing #84.063 Federal Pell Grant Program, Assistance Listing #84.268 Federal Direct Student Loans, Contracts #003556 and G03556, Contract years: 05/05/21 – 12/31/26. Criteria: Special Tests and Provisions – Enrollment Reporting – Enrollment reporting must be reported within 30 days whenever attendance changes for students, unless a roster file will be submitted within 60 days. Institutions are responsible for accurately reporting all Campus-Level Record data elements, including Enrollment Status (OMB No. 1845-0035, Pell-34 CFR Section 690.83(b)(2), and Direct Loan-34 CFR Section 685.309b). Condition and context: The Institute entered an incorrect enrollment status for 1 out of 16 students selected for testing. Cause: Failure to execute policies and procedures related to accurate reporting of enrollment status. Effect: Failure to follow and maintain internal control procedures over students’ status changes impacts the determination of eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to the Federal Family Education Loan Program (FFEL) holders by the Department of Education. Questioned costs: Unknown. Recommendation: Emphasize the importance of accurately reporting enrollment status. Views of responsible officials and planned corrective actions: Management agrees with the finding. See Corrective Action Plan.

Categories

Student Financial Aid Special Tests & Provisions Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility HUD Housing Programs Reporting Significant Deficiency

Other Findings in this Audit

  • 565020 2024-001
    Significant Deficiency
  • 1141462 2024-001
    Significant Deficiency
  • 1141463 2024-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.41M
84.063 Federal Pell Grant Program $664,025