Finding 577284 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-10-27
Audit: 1585
Organization: Missouri Baptist University (MO)
Auditor: Forvis

AI Summary

  • Core Issue: The University failed to report student enrollment changes to NSLDS on time, violating federal regulations.
  • Impacted Requirements: Enrollment reporting must occur within 30 days for changes and within 60 days on roster files.
  • Recommended Follow-Up: Evaluate and improve controls for monitoring enrollment reporting and ensure timely updates from the third-party servicer.

Finding Text

Information on the Federal Program: Student Financial Assistance Cluster, Assistance Listing Number 84.268 Federal Direct Student Loans, Assistance Listing Number 84.063 Federal Pell Grant Program, U.S. Department of Education Program Year 2022-2023 Criteria or Specific Requirement: Special Tests and Provisions - Enrollment Reporting Condition: Federal regulations provide that the University is responsible for notifying the National Student Loan Data System (“NSLDS”) of changes in enrollment within 30 days or on an Enrollment Reporting roster file within 60 days. The University’s internal control system did not prevent certain late or missed changes requiring reporting. Questioned Costs: None Context: Out of a population of 285 student enrollment status changes requiring NSLDS notification, a sample of 35 student enrollment changes were selected for testing. 33 of the status changes had deviations from reporting requirements. Our sample was not and was not intended to be statistically valid. Effect: The University may not be able to timely detect when students are not being included within the Enrollment Reporting roster file which could result in the NSLDS not being properly notified of student enrollment changes for Direct Loan and Pell recipients in accordance with federal regulations. Cause: During fiscal year 2023, 32 of the 33 exceptions related to graduates or withdrawn students where the status change was reported to the University’s third-party servicer within the 60 day period but was not reported by the third party servicer to NSLDS within the 60 day period. The remaining other exception related to a student with an improper effective date reported to NSLDS. Identification as a Repeat Finding, if Applicable: Not Applicable Recommendation: We recommend the University evaluate controls around monitoring enrollment reporting to determine changes, either on the electronic processes or review processes that should be made to properly capture enrollment status changes on a timely basis and to properly monitor its third-party service provider for timely reporting as necessary. Views of Responsible Officials and Planned Corrective Action: Management concurs with the finding and recommendation. See further information on the corrective action plan provided by management.

Categories

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

Other Findings in this Audit

  • 842 2023-001
    Significant Deficiency
  • 843 2023-001
    Significant Deficiency
  • 577285 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.58M
84.063 Federal Pell Grant Program $2.98M
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $210,289
84.007 Federal Supplemental Educational Opportunity Grants $209,900
84.033 Federal Work-Study Program $139,802