Finding 609285 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-26

AI Summary

  • Core Issue: The District failed to report the enrollment status of 4 graduates to the NSLDS, violating compliance requirements.
  • Impacted Requirements: Timely and accurate enrollment reporting is mandated by the Department of Education every 60 days.
  • Recommended Follow-Up: Establish a regular review process for the DegreeVerify exceptions report to ensure all graduate statuses are updated promptly.

Finding Text

Finding 2022-001: Enrollment Reporting Submissions for Graduates U.S. Department of Education Student Financial Assistance Cluster Program Name(s): Federal Pell Grant Program, ALN 84.063 and Federal Direct Student Loans, ALN 84.268 Award Numbers: P063P216822 (Palo Alto College); P063P215081, P268K225081 (San Antonio College) Compliance Requirement: Special Tests and Provisions ? Enrollment Reporting Type of Finding: Significant Deficiency in Internal Control over Compliance Criteria: According to the Office of Management and Budget (OMB) 2022 Compliance Supplement, institutions are required to report enrollment status information under the Pell Grant and the Direct Student Loan programs via the National Student Loan Data System (NSLDS) in a timely and accurate manner. The Department of Education (ED) requires the enrollment information to be submitted at least every 60 days. Condition and Context: As part of our testing of the District?s compliance with enrollment reporting requirements, it was noted that for 4 students (all of whom were Pell Grant recipients and 1 was also a Direct Loan recipient; students were attendees of Palo Alto College and San Antonio College) out of the total of 40 students sampled, the District did not ensure that the students? enrollment status of ?Graduated? was reported to NSLDS. The sample size to be tested was not determined using a statistical sampling approach. Cause: The submission of enrollment information is a systemic process in which a report is generated in Banner, the District?s ERP system; the District sends that information to the National Student Clearinghouse (NSC), who then submits it to the NSLDS. For students who have graduated, the District uses a free service from NSC called DegreeVerify, through which NSC reviews the students on the District?s ?Graduate? file to determine whether it can create a ?Graduated? enrollment record. An exceptions report is then created within NSC listing those students whose status could not be updated to ?graduated?. The District is then required to review the exceptions report and resend the list to NSC indicating that the student?s status does in fact need to be updated to ?Graduated.? The District did not review the exception reports for the current year, which resulted in the 4 students noted above not having their ?Graduated? status reported to NSLDS by NSC. Effect or Potential Effect: The administration of the Title IV programs depends heavily on the accuracy and timeliness of the enrollment information reported by institutions. Complete and accurate reporting of students? enrollment information to NSLDS is critical, as this information is used to determine the subsidy status of certain loans and for other purposes. The lack of timely enrollment reporting could result in either a lack of timely repayments by the borrower or the student being inappropriately moved into loan repayment status. See ?Condition? above for instances of noncompliance identified in the current period which were not identified as material noncompliance. Questioned Costs: There are no questioned costs. Repeat Finding: No Recommendation: We recommend that management implement a process to review the DegreeVerify exceptions report and indicate to NSC that student statuses need to be updated to ?Graduated.? This process should be performed with sufficient regularity to ensure that enrollment information reported to the NSLDS is complete and accurate. Views of Responsible Officials and Planned Corrective Actions: See corrective action plan

Categories

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

Other Findings in this Audit

  • 32843 2022-001
    Significant Deficiency
  • 32844 2022-001
    Significant Deficiency
  • 32845 2022-002
    Significant Deficiency Repeat
  • 32846 2022-002
    Significant Deficiency Repeat
  • 32847 2022-002
    Significant Deficiency Repeat
  • 609286 2022-001
    Significant Deficiency
  • 609287 2022-002
    Significant Deficiency Repeat
  • 609288 2022-002
    Significant Deficiency Repeat
  • 609289 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $79.89M
84.268 Federal Direct Student Loans $13.95M
84.007 Federal Supplemental Educational Opportunity Grants $3.87M
84.033 Federal Work-Study Program $2.72M
84.048 Career and Technical Education -- Basic Grants to States $2.31M
84.047 Trio_upward Bound $1.58M
84.042 Trio_student Support Services $681,023
84.002 Adult Education - Basic Grants to States $563,231
17.285 Apprenticeship USA Grants $559,971
11.300 Investments for Public Works and Economic Development Facilities $410,786
84.335 Child Care Access Means Parents in School $389,284
93.093 Affordable Care Act (aca) Health Profession Opportunity Grants $307,008
84.044 Trio_talent Search $269,467
17.268 H-1b Job Training Grants $253,439
12.902 Information Security Grants $172,514
84.031 Higher Education_institutional Aid $163,998
94.006 Americorps $128,518
12.905 Cybersecurity Core Curriculum $120,032
47.076 Education and Human Resources $90,496
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $85,145
84.425 Education Stabilization Fund $81,119
84.066 Trio_educational Opportunity Centers $73,594
12.903 Gencyber Grants Program $66,307
93.558 Temporary Assistance for Needy Families $48,971
93.092 Affordable Care Act (aca) Personal Responsibility Education Program $47,610
45.162 Promotion of the Humanities_teaching and Learning Resources and Curriculum Development $33,959
43.008 Office of Stem Engagement (ostem) $30,508
20.235 Commercial Motor Vehicle Operator Training Grants $25,000
17.278 Wioa Dislocated Worker Formula Grants $22,459
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $9,694
10.558 Child and Adult Care Food Program $7,130
97.024 Emergency Food and Shelter National Board Program $3,721
10.902 Soil and Water Conservation $3,282
84.305 Education Research, Development and Dissemination $3,032
93.318 Protecting and Improving Health Globally: Building and Strengthening Public Health Impact, Systems, Capacity and Security $2,959
93.575 Child Care and Development Block Grant $2,835
12.598 Centers for Academic Excellence $2,310