Finding 960763 (2023-002)

Finding 2023-002—Enrollment Reporting Repeat Finding: Yes Federal Program Title—U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2022-2023 Condition For two out of four students tested (50%) who withdrew from the Institute, the students’ enrollment status reported to the National Student Loan Data System (NSLDS) did not match the institution’s records. Criteria CFR section 685.309 and 690.83(b)(2) requires the Institute to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student’s date of determination of withdrawal. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure accurate reporting of enrollment status changes. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause Between 2022 and 2023, the Registration & Records office at Erikson experienced significant staff turnover, which revealed underlying vulnerabilities. Initially, there was a reorganization of the entire enrollment management function. During this time, a key office member was out for extended periods of time under FMLA prior to resigning in spring 2023. This staffing shortage led to delays in registration functions related to reporting to the NSLDS that sit within this office, including reporting. Context Two out of four students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend the Institute improve internal controls in order to report any status changes to the NSLDS timely and accurately. Views of Responsible Officials We agree with this finding. See corrective action plan. Finding 2023-002—Enrollment Reporting Repeat Finding: Yes Federal Program Title—U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2022-2023 Condition For two out of four students tested (50%) who withdrew from the Institute, the students’ enrollment status reported to the National Student Loan Data System (NSLDS) did not match the institution’s records. Criteria CFR section 685.309 and 690.83(b)(2) requires the Institute to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student’s date of determination of withdrawal. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure accurate reporting of enrollment status changes. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause Between 2022 and 2023, the Registration & Records office at Erikson experienced significant staff turnover, which revealed underlying vulnerabilities. Initially, there was a reorganization of the entire enrollment management function. During this time, a key office member was out for extended periods of time under FMLA prior to resigning in spring 2023. This staffing shortage led to delays in registration functions related to reporting to the NSLDS that sit within this office, including reporting. Context Two out of four students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend the Institute improve internal controls in order to report any status changes to the NSLDS timely and accurately. Views of Responsible Officials We agree with this finding. See corrective action plan.