Finding 966994 (2023-005)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-30
Audit: 301315
Organization: Wilberforce University (OH)

AI Summary

  • Core Issue: The Registrar’s Office is not notifying the NSLDS of student enrollment status changes within the required thirty days, leading to delays in loan processing.
  • Impacted Requirements: Federal regulations mandate timely updates to the NSLDS to prevent issues with loan eligibility and default management.
  • Recommended Follow-Up: Implement new procedures for timely reporting and ensure all staff understand NSLDS requirements to improve compliance.

Finding Text

SCHEDULE OF FINDINGS AND QUESTIONED COSTS AND CORRECTIVE ACTION PLAN Federal Award Findings and Questioned Costs June 30, 2023 Comment 2023-005 ENROLLMENT REPORTING PROCEDURES SHOULD BE STRENGTHENED STUDENT FINANCIAL AID CLUSTER PROGRAM CFDA # 84.268 (Questioned Costs - None) Condition: When the Registrar’s Office discovers that a student did not enroll or ceased to be enrolled on at least a half-time basis, the National Student Loan Data System (NSLDS) should be notified of the change in the student’s enrollment status within thirty days of the occurrence, unless the Institution expects to complete its next scheduled filing within sixty days. During our audit, we noted three (3) instances in which student status changes were reported more than sixty (60) days after the occurrence. Context: A haphazard selection of ten (10) students was made from the list of student withdrawals and graduates during the year. Criteria: Federal regulations require the Institution to notify the NSLDS of a change in student status (i.e., withdrawn, graduated, enrolled less than half-time, etc.). Unless the Institution expects to complete its next filing within sixty days, the Institution must notify the NSLDS within thirty days if it discovers a student with an outstanding federal loan balance has ceased to be enrolled on at least a half-time basis. [34 CFR 685.309] Effect: The lender or guaranty agency is not receiving prompt notification of changes in borrower’s enrollment status. This results in delayed processing of loan repayment periods and leads to poor default management. Late or incorrect updates to the NSLDS may also cause students to receive loans for which they are not eligible, as half-time enrollment is a requirement for Federal Direct Loan (FDL) eligibility. Cause: Necessary withdrawal documentation is not consistently processed and forwarded to appropriate departments in a timely manner to ensure reports are accurately filed as scheduled. Overall, there is an inadequate process of verifying the enrollment status of students. Recommendation: The Institution should implement procedures to ensure compliance with federal regulations. The Registrar’s Office should obtain a complete understanding of the NSLDS reporting requirements. Improving the accuracy and timeliness of student status filings will aid in the transition of students to loan repayment status. Views of Responsible Officials and Planned Corrective Actions: Management agrees with the auditors and has initiated the necessary corrective action plan to mitigate the deficiency from occurring again. The plan is to implement new procedures to ensure the reporting to the NSLDS is done on a timely basis. Implementation date: Immediately. Persons Responsible: Vice President of Business & Finance, the Registrars Office and the Director of Student Financial Aid.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility HUD Housing Programs Reporting

Other Findings in this Audit

  • 390552 2023-005
    Significant Deficiency
  • 390553 2023-004
    Significant Deficiency Repeat
  • 390554 2023-004
    Significant Deficiency Repeat
  • 390555 2023-004
    Significant Deficiency Repeat
  • 390556 2023-004
    Significant Deficiency Repeat
  • 966995 2023-004
    Significant Deficiency Repeat
  • 966996 2023-004
    Significant Deficiency Repeat
  • 966997 2023-004
    Significant Deficiency Repeat
  • 966998 2023-004
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.007 Federal Supplemental Educational Opportunity Grants $2.22M
84.268 Federal Direct Student Loans $1.99M
84.063 Federal Pell Grant Program $1.95M
84.031 Higher Education_institutional Aid $1.11M
84.382 Strengthening Minority-Serving Institutions $648,856
84.033 Federal Work-Study Program $266,229
84.038 Federal Perkins Loan Program $213,763
84.425 Covid-19 Education Stabilization Fund $169,589