Finding 946181 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-20
Audit: 291202
Organization: Loras College (IA)

AI Summary

  • Core Issue: Timely reporting of student enrollment changes to the National Student Loan Data System (NSLDS) was not consistently followed, affecting 9 out of 25 students tested.
  • Impacted Requirements: Institutions must update and return enrollment reports to the Secretary within specified timeframes and notify of any changes in student status or address within 30 days.
  • Recommended Follow-Up: Review and enhance reporting policies, designate a secondary reviewer for enrollment data, and implement monthly checks to ensure compliance with Title IV regulations.

Finding Text

Criteria: Title IV regulations (34 CFR 685.309(b)) 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. Condition/Context: The change in student status for 7 of 25 students tested was not reported to the National Student Loan Data System (NSLDS) timely when the students graduated at the end of the spring term. The change in status for 2 of 25 students tested was not reported to NSLDS at the campus level. The sample was not a statistically valid sample. Questioned Costs: Not applicable. Cause: The Registrar's data collection was not reviewed after submission to National Student Clearinghouse (NSC) by another responsible individual to ascertain the accuracy of graduated students being reported. The College received a response from NSC of no errors, therefore the graduated students in question were not reported in a timely manner. Effect: The accuracy of Title IV student loan records depends heavily on the accuracy of the enrollment information reported by schools. If an Institution does not review, update and verify student enrollment statuses, effective dates of the enrollment status and the anticipated completion dates, then the Title IV student loan records will be inaccurate. Recommendation: It is recommended that the College review policies and procedures in place to resolve reporting issues with the third-party servicer in a timely manner or implement an alternative reporting method to facilitate compliance with Title IV regulations. Management’s Response: Management has reviewed policies and procedures for accurate reporting of enrollment status and changes to be in compliance with federal regulations. The College will designate a secondary responsible individual to conduct a review of the preparation of the digital file and review the digital file of student enrollment changes before it is submitted to the National Student Loan Clearinghouse. The Office of Financial Planning will conduct monthly review as a secondary review of enrollment reporting in the National Student Loan Data System (NSLDS).

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Reporting

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Loan Program $6.53M
84.038 Federal Perkins Loan Program $1.81M
84.063 Federal Pell Grant Program $1.42M
84.007 Federal Supplemental Educational Opportunity Grant Program $196,904
84.033 Federal Work-Study Program $149,836
47.076 Stem Education $137,997
45.162 Promotion of the Humanities Teaching and Learning Resources and Curriculum Development $99,604
84.379 Teacher Education Assistance for College and Higher Education Grants $24,348
00.U10 From Dubuque to the Big Leagues $1,487
45.149 Promotion of the Humanities Division Or Preservation and Access $1,200