Finding Text
2023-002. FINDING (Enrollment Reporting)
Federal Department: U.S. Department of Education
Assistance Listing Number: 84.268
Cluster Name: Student Financial Assistance Cluster
Program Name: Federal Direct Student Loans
Award Numbers: P268K230567, P268K220567
Questioned Cost: None
Program Expenditures: $21,864,079
Cluster Expenditures: $33,549,307
Governors State University (University) did not timely report student enrollment information to the U.S. Department of Education’s National Student Loan Data System (NSLDS).
During our audit, we tested 33 students who experienced a change in enrollment status during the fiscal year. Our testing identified two students (6%) whose enrollment status change was not reported timely to the NSLDS. The student enrollment status changes were reported 236 and 353 days late after the date of occurrence. The sample was not intended to be, and was not, a statistically valid sample.
The Code of Federal Regulations (34 CFR 685.309) requires the University, upon the receipt of an enrollment report from the Secretary, to update all information included in the report and return the report to the Secretary within the timeframe prescribed by the Secretary. It further requires the University to report enrollment changes within 30 days unless a roster file is expected within 60 days, in which case the enrollment data may be updated on that roster file. The Uniform Guidance (2 CFR 200.303) requires nonfederal entities receiving federal awards establish and maintain internal controls designed to reasonably ensure compliance with federal statutes, regulations, and terms and conditions of the federal award. Effective internal controls should include procedures to ensure timely student enrollment status reports are submitted to NSLDS.
University officials stated the students noted were granted administrative withdrawal for a single course after the semester (the students registered for) ended, which resulted in a change of enrollment from Full-time to Three-Quarters of a Time. The University reports enrollment status changes to NSLDS through the National Student Clearinghouse (NSC), a third-party servicer. Changes to enrollment that occur after the term has been reported will not be updated in NSLDS by changes made by the University in NSC. Those enrollment changes need to be updated directly in the NSLDS enrollment history update function.
Enrollment reporting in a timely manner is critical for effective management of the student financial aid programs. Noncompliance with enrollment reporting regulations may result in a loss of future federal funding. (Finding Code No. 2023-002, 2022-002, 2021-003)
RECOMMENDATION
We recommend the University improve its procedures to ensure timely reporting of student enrollment status to the NSLDS.
UNIVERSITY RESPONSE
The University agrees with this finding and accepts the recommendation. The University has already identified a method to report directly to NSLDS all enrollment changes occurring after the end of the term. The University will continue to update timely the NSLDS enrollment history as needed when the situation of late withdrawals occurs beyond the reporting dates.