Finding 580167 (2023-002)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2023
Accepted
2023-12-08

AI Summary

  • Core Issue: The University has a material weakness in internal controls and noncompliance due to inability to verify enrollment status reported in NSLDS.
  • Impacted Requirements: Institutions must accurately report enrollment information for Pell and Direct Loan programs, including maintaining records that align with NSLDS data.
  • Recommended Follow-Up: The University should assess NSLDS access and documentation needs to ensure compliance with reporting requirements.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Cluster Assistance Listing Number: 84.063, 84.268 Federal Award Identification Number and Year: P268K242432-2023, P063P222432-2023 Award Period: August 1, 2022 to July 31, 2023 Type of Finding: • Material Weakness in Internal Control over Compliance • Material Noncompliance (Modified Opinion) Criteria or specific requirement: Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the NSLDS (OMB No. 1845-0035), although FFEL loans are no longer made or a part of the SFA Cluster, a student may have a FFEL loan from previous years that would require enrollment reporting for that student (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Institutions must review, update, and verify student enrollment statuses, program information, and effective dates that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website which the financial aid administrator can access for the auditor. The data on the institution’s Enrollment Reporting Roster, or Enrollment Maintenance page, is what NSLDS has as the most recently certified enrollment information. 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. The NSLDS Enrollment Reporting Guide provides the requirements and guidance for reporting enrollment details using the NSLDS Enrollment Reporting Process. Condition: The University could not provide documentation that the enrollment status reported in NSLDS was in agreement with the University’s records. Questioned costs: There are no questioned costs. Context: The University is in the process of winding down operations, and is no longer providing educational services, and no longer has access to the NSLDS system. Cause: The University no longer has access to the NSLDS system, and therefore could not provide documentation that the enrollment status reported in NSLDS was supported by the University’s records. Effect: The University failed to comply with the stated criteria. Repeat Finding: No Recommendation: We recommend that the University consider any NSLDS access and documentation requirements necessary to ensure compliance with the stated criteria. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Student Financial Aid Material Weakness Reporting Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3722 2023-001
    Significant Deficiency
  • 3723 2023-002
    Material Weakness
  • 3724 2023-001
    Significant Deficiency
  • 3725 2023-002
    Material Weakness
  • 3726 2023-001
    Significant Deficiency
  • 3727 2023-002
    Material Weakness
  • 3728 2023-001
    Significant Deficiency
  • 3729 2023-002
    Material Weakness
  • 3730 2023-001
    Significant Deficiency
  • 3731 2023-002
    Material Weakness
  • 580164 2023-001
    Significant Deficiency
  • 580165 2023-002
    Material Weakness
  • 580166 2023-001
    Significant Deficiency
  • 580168 2023-001
    Significant Deficiency
  • 580169 2023-002
    Material Weakness
  • 580170 2023-001
    Significant Deficiency
  • 580171 2023-002
    Material Weakness
  • 580172 2023-001
    Significant Deficiency
  • 580173 2023-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.00M
84.063 Federal Pell Grant Program $1.00M
84.038 Federal Perkins Loan Program $351,749
84.007 Federal Supplemental Educational Opportunity Grants $82,888
84.033 Federal Work-Study Program $26,061
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $3,000