Prescott College

National Student Loan Database System (NSLDS) Enrollment Reporting Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2024 through June 30, 2025 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 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. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits. Condition: During our testing of 40 students, we noted two students where the change in enrollment status was not reported within 60 days. Questioned costs: None Context: During our testing, it was noted the College does not have a process in place to ensure the timeliness and accuracy of NSLDS reporting. Cause: The College did not have a process in place to ensure the student who graduated or withdrew were reported timely and accurately. Effect: The College did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely and accurately. Repeat finding: Yes, 2024-002. Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2023 through June 30, 2024 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 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. In addition, regulations require that an institution make necessary corrections and return the records within 10 days for any roster files that don’t pass the NSLDS enrollment reporting edits.

Condition: During our testing of 40 students, we noted one student where the change in enrollment status was not reported within 60 days.

Questioned costs: None

Context: During our testing, it was noted the College does not have a process in place to ensure the timeliness and accuracy of NSLDS reporting.

Cause: The College did not have a process in place to ensure the student who graduated or withdrew were reported timely and accurately.

Effect: The College did not comply with Department of Education (ED) regulations by reporting student enrollment status changes timely and accurately. Repeat finding: No Recommendation: We recommend the College reevaluate their procedures and review policies surrounding reporting status changes to NSLDS to ensure timely and accurate reporting. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e)(2)(viii); 668.164(f)(4)(iii)(B); 668.164(f)(4)(v), requires that a school must provide to ED an up-to-date URL for the contract for publication in a centralized database accessible to the public.

Condition: During our testing, we noted the College had not updated the Department of Education with their current third party servicer, Nelnet Business Solutions, LLC.

Questioned costs: None Context: During our testing, we noted the College had not updated the Department of Education with an up-to-date URL for the contract with the College's current third party servicer.

Cause: Lack of oversight by management to verify the third party servicer was reported to the Department of Education. Effect: The College is not in compliance with Department of Education requirements that state the College must report an up-to-date URL for the contract with their third party servicer.

Repeat finding: Yes – See 2023-003 Recommendation: We recommend the College review its reporting procedures surrounding their third party servicer to ensure reporting is accurate and complete. Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2022 through June 30, 2023

Type of Finding:

􀁸 Significant Deficiency in Internal Control Over Compliance 􀁸 Other Matters

Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.165(a)(2) requires notification be sent to students no earlier than 30 days before the disbursement and no later than 30 days after the Direct Loans are disbursed to their accounts if the College obtains active confirmation. If the College does not obtain active confirmation, notifications are required to be sent no earlier than 30 days before the disbursement and not later than seven days to the student when loan funds are disbursed to their accounts.

Condition: During our testing, we noted that 37 of 37 students tested did not receive disbursement notifications before the required deadline established by the Department of Education.

Questioned costs: None

Context: In the process of cleaning up student accounts receivable after the previous Bursar left, this procedure was inadvertently stopped.

Cause: Lack of oversight by management to verify the notifications were sent within the required timeframe. Effect: Student may not have been aware of when their federal aid was disbursed and therefore may not know their rights to be able to return loan funds. The College is not in compliance with Department of Education requirements.

Repeat finding: No

Recommendation: We recommend the College review and strengthen its procedures for notifying students of their Direct Loan disbursements within the required time frame and that documentation of the letters sent is maintained.

Views of responsible officials: There is no disagreement with the audit finding.

Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster ALN Numbers: Multiple Award Period: July 1, 2022 through June 30, 2023

Type of Finding:

􀁸 Significant Deficiency in Internal Control Over Compliance 􀁸 Other Matters

Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.164(e)(2)(viii); 668.164(f)(4)(iii)(B); 668.164(f)(4)(v), requires that a school must provide to ED an up-to-date URL for the contract for publication in a centralized database accessible to the public.

Condition: During our testing, we noted the College had not updated the Department of Education with their current third party servicer, Nelnet Business Solutions, LLC.

Questioned costs: None

Context: During our testing, we noted the College had not updated the Department of Education with an up-to-date URL for the contract with the College's current third party servicer.

Cause: Lack of oversight by management to verify the third party servicer was reported to the Department of Education.

Effect: The College is not in compliance with Department of Education requirements that state the College must report an up-to-date URL for the contract with their third party servicer.

Repeat finding: No

Recommendation: We recommend the College review its reporting procedures surrounding their third party servicer to ensure reporting is accurate and complete.

Views of responsible officials: There is no disagreement with the audit finding.