Finding 621704 (2022-001)

-
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-02-21
Audit: 47217
Organization: Seton Hill University (PA)

AI Summary

  • Core Issue: The University failed to report enrollment status changes for 1 out of 40 students within the required 60-day timeframe, violating federal regulations.
  • Impacted Requirements: Noncompliance with 34 CFR 685.309, 34 CFR 690.83(b)(2), and 34 CFR 682.610 regarding timely enrollment reporting.
  • Recommended Follow-Up: Implement additional steps in the enrollment reporting process and develop comprehensive policies to ensure timely and accurate reporting of all enrollment changes.

Finding Text

SECTION II - FINANCIAL STATEMENT FINDINGS This section identifies the significant deficiencies, material weaknesses, fraud, noncompliance with provisions of laws, regulations, contracts, grant agreements and abuse related to the financial statements for which Government Auditing Standards require reporting. There were no such findings in the current year that are required to be reported in accordance with Government Auditing Standards. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS This section identifies the audit findings required to be reported by 2 CFR 200.516(a) (significant deficiencies, material weaknesses, material instances of noncompliance, including questioned costs and material abuse). Finding 2022-001: Student Financial Assistance Cluster, Department of Education Programs Program Names: Federal Direct Student Loans AL Numbers: 84.268 Criteria or Specific Requirement: 34 CFR 685.309 and 34 CFR 690.83(b)(2) require the institution to update its Enrollment Reporting roster file at a minimum of every 60 days. Once a change in enrollment status has been received, the institution must update its roster file for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Condition: The University did not report enrollment status changes to the NSLDS through the National Student Clearinghouse as required under 34 CFR 682.610 for 1 of 40 students tested, within the 60-day required time frame. Cause: The exceptions noted were a result of a failure in the University?s processes and controls surrounding a specific group of students. A system limitation existed that did not capture enrollment changes timely for students who withdrew from the University after the end of the Spring 2022 semester. Effect or Potential Effect: A student?s enrollment status determines eligibility for in-school status, deferment, and grace periods. Enrollment reporting in a timely and accurate manner is critical for effective management of the program. Changes in enrollment status were not submitted to the NSLDS within the time frame required under 34 CFR 682.610. Questioned Costs: None noted SECTION II - FINANCIAL STATEMENT FINDINGS This section identifies the significant deficiencies, material weaknesses, fraud, noncompliance with provisions of laws, regulations, contracts, grant agreements and abuse related to the financial statements for which Government Auditing Standards require reporting. There were no such findings in the current year that are required to be reported in accordance with Government Auditing Standards. SECTION III - FEDERAL AWARD FINDINGS AND QUESTIONED COSTS This section identifies the audit findings required to be reported by 2 CFR 200.516(a) (significant deficiencies, material weaknesses, material instances of noncompliance, including questioned costs and material abuse). Finding 2022-001: Student Financial Assistance Cluster, Department of Education Programs Program Names: Federal Direct Student Loans AL Numbers: 84.268 Criteria or Specific Requirement: 34 CFR 685.309 and 34 CFR 690.83(b)(2) require the institution to update its Enrollment Reporting roster file at a minimum of every 60 days. Once a change in enrollment status has been received, the institution must update its roster file for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the National Student Loan Data System (NSLDS) website. Condition: The University did not report enrollment status changes to the NSLDS through the National Student Clearinghouse as required under 34 CFR 682.610 for 1 of 40 students tested, within the 60-day required time frame. Cause: The exceptions noted were a result of a failure in the University?s processes and controls surrounding a specific group of students. A system limitation existed that did not capture enrollment changes timely for students who withdrew from the University after the end of the Spring 2022 semester. Effect or Potential Effect: A student?s enrollment status determines eligibility for in-school status, deferment, and grace periods. Enrollment reporting in a timely and accurate manner is critical for effective management of the program. Changes in enrollment status were not submitted to the NSLDS within the time frame required under 34 CFR 682.610. Questioned Costs: None noted Context: The sample selected for testing is representative of the population. However, it was determined upon further review of the entire population by the University that there were 49 additional instances of noncompliance that were not included within the sample. Identification as a Repeat Finding, if applicable: This is not a repeat finding. Recommendation: We recommend that the University implement an additional step in its enrollment status change process to ensure that official withdrawals made in between terms are reported in a timely manner and that the population of enrollment changes is complete. We also recommend that the University continue to develop and document additional policies and procedures to ensure that all enrollment changes are reported accurately, completely, and in a timely manner. Views of responsible officials: Management concurs with this finding. See separate corrective action plan document.

Categories

Student Financial Aid Eligibility Material Weakness Reporting Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.49M
84.063 Federal Pell Grant Program $2.32M
84.038 Federal Perkins Loan Program $767,781
84.031 Higher Education_institutional Aid $574,515
84.042 Trio_student Support Services $292,793
84.425 Education Stabilization Fund $289,427
84.007 Federal Supplemental Educational Opportunity Grants $269,567
84.033 Federal Work-Study Program $213,847
45.163 Promotion of the Humanities_professional Development $63,962
47.074 Biological Sciences $27,473