Finding 966163 (2023-003)

Material Weakness
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29

AI Summary

  • Core Issue: Fort Scott Community College lacks effective internal controls for timely and accurate enrollment reporting to NSLDS, leading to incorrect submissions and unresolved batch errors.
  • Impacted Requirements: Institutions must report changes in student status within 15 days, ensuring eligibility for financial aid programs; failure to do so can affect student benefits.
  • Recommended Follow-Up: Develop and implement comprehensive policies and training for staff on enrollment reporting, along with an oversight process to ensure compliance and accuracy.

Finding Text

Information of Federal Program: Student Financial Aid Cluster Federal Pell Grant Program – CFDA No. 84.063 Federal Direct Student Loans – CFDA No. 84.268 Criteria: Under the Pell grant and ED loan programs, institutions must complete and return within 15 days the Enrollment Reporting roster file [formerly the Student Status Confirmation Report (SSCR)] placed in their Student Aid Internet Gateway (SAIG) (OMB No. 1845-0002) mailboxes sent by ED via NSLDS (OMB No. 1845-0035). The institution determines how often it receives the Enrollment Reporting roster file with the default set at a minimum of every 60 days. Once received, the institution must update for changes in student status, report the date the enrollment status was effective, enter the new anticipated completion date, and submit the changes electronically through the batch method or the NSLDS website (Pell, 34 CFR 690.83(b)(2); FFEL, 34 CFR 682.610; Direct Loan, 34 CFR 685.309). Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. NSLDS will send a Late Enrollment Reporting notification e-mail if no updates are received by batch or online within 22 days after the date the roster was sent to the school. The Enrollment Reporting Summary Report (SCHER1) on the NSLDS website can be created at the request of the institution. It shows the dates the roster files were sent and returned, the number of errors, date and number of online updates, and the number of late enrollment reporting notifications sent for overdue Enrollment Reporting rosters. Condition: During our testing of the enrollment reporting, it was noted that Fort Scott Community College did not have internal controls of reporting changes in student status’ to NSLDS. Cause: The College did not have proper training that allowed for changes in the Federal reporting regulations and the creation of an error summary report to process all errors in a timely manner. Effect or Potential Effect: A student’s enrollment status determines eligibility for in-school status, deferment, and grace periods, as well as for the payment of interest subsidies to FFEL Program loan holders by ED. Enrollment Reporting in a timely and accurate manner is critical for effective management of the programs. Questioned Costs: None Context: During our testing of the enrollment reporting process, it was noted that Fort Scott Community College’s internal controls over enrollment reporting broke down after there was a change in the reporting process. Twenty-four (24) of forty (40) files tested, changes to a student’s status was either incorrectly submitted or batch errors were not timely corrected. Repeat Finding: No Recommendation: Policies and procedures should be written to provide additional training and oversight of staff responsible for enrollment reporting. We recommend the College establish an oversight process that includes additional controls necessary until staff are fully trained in the area of enrollment reporting. Views of responsible officials and planned corrective action: Management is in agreement and will implement a Corrective Action Plan, see pages 72-75 of the current year audit.

Categories

Student Financial Aid Reporting Internal Control / Segregation of Duties Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 389705 2023-002
    Material Weakness
  • 389706 2023-003
    Material Weakness
  • 389707 2023-004
    Material Weakness
  • 389708 2023-002
    Material Weakness
  • 389709 2023-003
    Material Weakness
  • 389710 2023-004
    Material Weakness
  • 389711 2023-002
    Material Weakness
  • 389712 2023-003
    Material Weakness
  • 389713 2023-004
    Material Weakness
  • 389714 2023-002
    Material Weakness
  • 389715 2023-003
    Material Weakness
  • 389716 2023-004
    Material Weakness
  • 389717 2023-002
    Material Weakness
  • 389718 2023-003
    Material Weakness
  • 389719 2023-004
    Material Weakness
  • 389720 2023-002
    Material Weakness
  • 389721 2023-003
    Material Weakness
  • 389722 2023-004
    Material Weakness
  • 389723 2023-005
    Material Weakness
  • 966147 2023-002
    Material Weakness
  • 966148 2023-003
    Material Weakness
  • 966149 2023-004
    Material Weakness
  • 966150 2023-002
    Material Weakness
  • 966151 2023-003
    Material Weakness
  • 966152 2023-004
    Material Weakness
  • 966153 2023-002
    Material Weakness
  • 966154 2023-003
    Material Weakness
  • 966155 2023-004
    Material Weakness
  • 966156 2023-002
    Material Weakness
  • 966157 2023-003
    Material Weakness
  • 966158 2023-004
    Material Weakness
  • 966159 2023-002
    Material Weakness
  • 966160 2023-003
    Material Weakness
  • 966161 2023-004
    Material Weakness
  • 966162 2023-002
    Material Weakness
  • 966164 2023-004
    Material Weakness
  • 966165 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.011 Migrant Education_state Grant Program $1.36M
84.268 Federal Direct Student Loans $1.16M
84.149 Migrant Education_college Assistance Migrant Program $463,434
84.141 Migrant Education_high School Equivalency Program $448,948
21.027 Coronavirus State and Local Fiscal Recovery Funds $400,052
84.042 Trio_student Support Services $267,910
84.007 Federal Supplemental Educational Opportunity Grants $41,465
84.425 Education Stabilization Fund $20,000
84.048 Career and Technical Education -- Basic Grants to States $8,000
84.033 Federal Work-Study Program $3,116
84.063 Federal Pell Grant Program $2,195