Finding Text
Finding 2022-001: Timely Enrollment Reporting Major Federal Program Title: United States Department of Education, Student Financial Assistance Cluster, Direct Student Loans (AL 84.268) Criteria: 2 CFR Part 200.303(a) state that the auditee must establish and maintain effective internal control over the federal awards that provides reasonable assurance that the auditee is managing the federal award in compliance with federal statues, regulations, and terms and conditions of the federal award. Specific criteria for enrollment reporting are established by the U.S. Department of Education within the 2021-2022 Federal Student Aid Handbook, Chapter 3, Sharing Information with NSLDS, Federal Loan Servicers, and Guarantors, including: (1) Institutions are required to report enrollment information under the Pell grant and the Direct loan programs via the NSLDS. (2) Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. (3) Institutions must report any enrollment status changes for students within 30 days; however, if a roster file is used, then the Institute may use the roster file to provide the update within 60 days. Condition: The Institute failed to notify the National Student Loan Data System for three selected students' withdrawals within the required 60 days. However, it was properly determined for the students to have earned 100% of the Title IV funds. Context: Three of 14 students tested from a population of 43 students with enrollment status changes were not reported in the required timeframe.Cause: These had occurred during the Registration and Records Department transitions with the Senior Director of Enrollment management leaving in July. Going forward it is practice for the Institute to notify NSLDS at the time of withdrawal determination to ensure timely submission. Effect: Noncompliance with federal regulations could result in the loss of future federal financial aid funding. In addition, not reporting enrollment status change within the required timeframe can impact an individual student?s loan deferment and repayment schedule. Questioned Costs: None Repeat finding: No Recommendation: We recommend that management consider the use of the ad hoc reporting option in NSLDS to prevent inadvertent late enrollment status updates for Return to Title IV Funds. Views of Responsible Official: Management agrees with this finding. Please see corrective action plan attached.