Finding Text
2023 – 002
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.063 – Federal Pell Grant Program, 84.268 – Federal Direct Student Loans
Pass-Through Agency: N/A
Pass-Through Number(s): N/A
Award Period: June 1, 2022 – May 31, 2023
Type of Finding:
• Significant Deficiency in Internal Control over Compliance
• Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 685.309 requires that enrollment status changes for students be reported to the National Student Loan Data System (NSLDS) within 30 days or within 60 days if the student with the status change will be reported on a scheduled transmission within 60 days of the change in status. Regulations require the status include an accurate effective date.
Condition: While performing audit procedures, it was noted that 2 students in our sample of forty (40) were not reported correctly to NSLDS. One student was reported as a graduate on April 16, 2023 but the degree was not conferred until May 13, 2023. A second student was reported as Graduated within Program Level NSLDS records but was in fact a withdrawn student.
Questioned costs: None.
Context: A control system to prevent and detect errors in the reporting process was not created to ensure all required reporting compliance was filed timely.
Cause: The University’s processes and controls did not ensure that student status changes were properly and timely reported to NSLDS. Effect: The NSLDS system is not updated with the student information which can cause over awarding should the student transfer to another institution and the students may not properly enter the repayment period.
Repeat finding: No
Recommendation: We recommend the University review its reporting procedures to ensure that students’ statuses are accurately and timely reported to NSLDS as required by regulations.
Views of responsible officials: There is no disagreement with the audit finding.