Finding Text
Finding 2022-007: Late Student Status Change Reporting - Significant Deficiency and Noncompliance Federal Program: Student Financial Assistance Cluster - Federal Direct Student Loan Program Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable Assistance Listing Number: 84.268 Federal Award Year: June 30, 2022 Criterion: Title IV regulations require that upon receipt of an enrollment report from the Secretary, institutions must update all information included in the report and return the report to the Secretary: (i) in the manner and format prescribed by the Secretary; and (ii) within the timeframe prescribed by the Secretary. Unless it expects to submit its next updated enrollment report to the Secretary within the next 60 days, an institution must notify the Secretary within 30 days after the date the institution discovers that: (i) a loan under Title IV of the Act was made to or on behalf of a student who was enrolled or accepted for enrollment at the Institution, and the student has ceased to be enrolled on at least a half-time basis or failed to enroll on at least a half-time basis for the period for which the loan was intended; or (ii) a student who is enrolled at the Institution and who received a loan under Title IV of the Act has changed his or her permanent address. In addition, the Uniform Guidance requires recipients of federal awards to administer its federal programs with an adequate system of controls over applicable compliance requirements. Condition and Context: The change in status for one of 25 students tested was not reported to the National Student Loan Data System (NSLDS) within 30 days or included in a roster file within 60 days. The sample was not statistically valid. Cause and Effect: The generation of enrollment reports changes is a manual process that, if not performed or reviewed to a sufficient level of detail, is subject to issues with the completeness and accuracy of information in the report. The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by institutions. If an institution does not review, update and verify student enrollment statuses, effective dates of enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: The College should develop a way to reliably generate a report that contains exactly the information required for student status changes. The College should review and revise its controls over compliance to ensure that student status changes are reported in a timely manner. Management Response: Management agrees with the finding. The Director of Financial Aid and Registrar will implement procedures and controls in 2023 to ensure student status changes are processed and reviewed in a timely manner.