Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.063 – Federal Pell Grant Program 84.268 – Federal Direct Loans
84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work Study Program Federal Award Identification Number and Year: P063P210355 - 2023, P268K220355 - 2023, P007A213474 - 2023, P033A213474 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Other Matter.
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days. In addition, per the Uniform Guidance 2 CRF 200.303, non-federal entities receiving federal awards are required to establish and maintain internal controls designed to reasonable ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: During our testing, we noted the College did not update student status changes and enrollment effective dates correctly or timely.
Questioned Costs: None
Context: During our sample test of 19 students, we noted: 17 students’ enrollment status on NSLDS differed from the College’s records.
17 students’ status change was not reported timely.
16 students’ enrollment effective dates on NSLDS differed from the College’s records.
The enrollment was not certified at least every 60 days for 19 students. Cause: The College did not have proper procedures in place to verify that student and enrollment status changes in NSLDS matched the institutions records, nor were status changes updated in a timely manner.
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes. See prior year finding 2022-006
Recommendation: We recommend a process be put in place to ensure documentation is maintained and available, particularly when making software changes. Views of responsible officials: There is no disagreement with the audit finding.