WAYNE STATE UNIVERSITYHigher Education

Assistance Listing Number, Federal Agency, and Program Name - Student Financial Assistance Cluster - Department of Education - Federal Direct Loans ALN 84.268, Pell ALN 84.063 Federal Award Identification Number and Year -Various Pass-through Entity -N/A Finding Type - Significant deficiency Repeat Finding - Yes 2020-001 Criteria - Changes in a student?s status are required to be reported to the National Student Loan Data System (NSLDS) within 30 days of the change or included in a student status confirmation report sent to NSLDS within 60 days of the status change (Pell, 34 CFR section 690.83(b)(2); Direct Loan, 34 CFR section 685.309). Condition - The University did not report the student status change in a timely manner for 1 of the 60 students selected for testing. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 60 students selected for testing, 1 student did not have a status change reported in a timely manner to NSLDS. The student had withdrew from the University. Cause and Effect - The University did not have a procedure in place to ensure that the enrollment record for a student who was reported as withdrawn was corrected after initially being rejected by the third-party service provider. This caused this student's withdrawn status to not be recorded timely. Subsequent to the audit testing performed, the proper status of withdrawn was reported for the student discussed above. Recommendation - The University should implement controls to ensure student status changes are reported correctly and within the required time frame. Views of Responsible Officials and Corrective Action Plan - The University concurs with the auditor?s findings and recommendations. The student identified as an issue was a student who had been administratively dismissed from the medical school. The student was withdrawn from classes for the remainder of their year long academic period and was reported correctly. However, the manual process to code this student with a manual exclusion from further reporting was not performed. This resulted in the student being reported again, indicating they were enrolled. This is the same situation that was discussed in the University?s corrective action plan (CAP) from fiscal year 2020, dated February 15, 2021. The issue with this student occurred four days later, on February 19, 2021, before the University had time to further analyze the problem and fully implement the CAP. The Registrar?s Office is working with the School of Medicine (SOM) to change its business procedures to prevent this issue from occurring in the future. This includes adding a process for the SOM to manually add a withdrawal record and update the enrollment status when administratively dismisses students. This will allow the National Student Clearinghouse (NSC), the University?s third party processor, to run their process without issues. The University also expects that the upcoming implementation of the School of Medicine?s new term structure will largely make the exclusion process less of a concern.

CFDA Number, Federal Agency, and Program Name - Student Financial Assistance Cluster - Department of Education - Federal Direct Loans CFDA 84.268, Pell CFDA 84.063 Federal Award Identification Number and Year - Various Pass through Entity - N/A Finding Type - Significant deficiency Repeat Finding - Yes, 2019-001 Criteria - Changes in a student?s status are required to be reported to the National Student Loan Data System (NSLDS) or the guarantee agency within 30 days of the change or included in a student status confirmation report sent to NSLDS within 60 days of the status change (FPL, 34 CFR section 674.19; Pell, 34 CFR section 690.83(b)(2); Direct Loan, 34 CFR section 685.309). Condition - The University did not report the student status change in a timely manner for 2 of the 60 students selected for testing. Questioned Costs - None Identification of How Questioned Costs Were Computed - N/A Context - Of the 60 students selected for testing, 2 students did not have a status change reported in a timely manner to NSLDS. Both of the students had withdrawn from the University. Cause and Effect - The University's processes in place resulted in the reporting of student status changes outside the required time frame. For one of the students identified, the University incorrectly reported the student as enrolled after initially reporting them correctly as withdrawn. This was caused by a human error that was not caught during established reviews. For the second student identified, the University did not have a procedure in place to ensure that the enrollment record for a student who was reported as withdrawn was corrected after initially being rejected by the third party service provider. This caused this student's withdrawn status to not be recorded timely. Subsequent to the audit testing performed, the proper status of withdrawn was reported for both students discussed above. Recommendation - The University should implement controls to ensure student status changes are reported correctly and within the required time frame. Views of Responsible Officials and Corrective Action Plan - The University concurs with the auditor?s findings and recommendations. The first student identified as an issue was a student who had been administratively dismissed from the School of Medicine. The student was withdrawn from classes in the remainder of their year long academic period, and, as noted, was initially reported correctly. However, a manual process to code the student with a manual exclusion code was not performed for the student, thus resulting in the student being reported again, indicating their prior enrollment for that term. The School of Medicine is working with outside contractors to determine if a process that was developed for handling leaves of absence can be adapted to resolve this issue. In the meantime, the University is working to develop a report to identify students who could be in this situation to ensure timely and accurate reporting. For the second student identified, a process the National Student Clearinghouse (NSC), the University?s third party processor, had developed with the University several years ago was not followed. The University worked with the NSC to handle the processing of certain enrollment files at the end of the term to report students accurately. For the student identified, this processing did not occur, as acknowledged by our third party processor. The NSC has implemented steps within its organization to ensure that the agreed upon procedures for handling these students are followed, and the Office of the Registrar has assigned additional staff to more closely monitor rejected records that may result if this process is not followed.

CFDA Number, Federal Agency, and Program Name - Student Financial Assistance Cluster - Department of Education - Federal Direct Loans CFDA 84.268, Pell CFDA 84.063Federal Award Identification Number and Year - VariousPass-through Entity - N/AFinding Type - Significant deficiencyRepeat Finding - Yes, 2018-001Criteria - Changes in a student?s status are required to be reported to the National Student Loan Data System (NSLDS) or the guarantee agency within 30 days of the change or included in a student status confirmation report sent to NSLDS within 60 days of the status change (FPL, 34 CFR section 674.19; Pell, 34 CFR section 690.83(b)(2); Direct Loan, 34 CFR section 685.309).Condition - The University did not report the student status change in a timely manner for 3 of the 60 students selected for testing.Questioned Costs - NoneIdentification of How Questioned Costs Were Computed - N/AContext - Of the 60 students selected for testing, 3 students did not have a status change reported in a timely manner to NSLDS. All 3 of the students had graduated from the University.Cause and Effect - The University's processes in place did not result in the reporting of student status changes within the required time frame. For one of the students identified, the University did not report the student as withdrawn from the University within 60 days of being withdrawn from the University while the University was working to confirm the student's graduation status. The graduation status change was reported to the NSLDS by the University after the 60-day required reporting time frame from the date the student graduated from the University.For the second student identified, the University did not have a procedure in place to ensure that students who graduated from an undergraduate program, but continued to be enrolled at the University in graduate classes, had their graduation status at the program level communicated timely to the NSLDS. An issue with the processing of this student's graduation file being reported to the NSLDS occurred, which caused this student's graduation from his undergraduate program to not be communicated timely to the NSLDS at the program level. The University identified this issue and reported the status to the NSLDS after the 60-day requiredreporting time frame from the date the student graduated from the University.For the third student identified, the University did not have a procedure in place to ensure that a student who was reported as graduated timely to the NSLDS at the program level was also reported timely as graduated at the campus level with the NSLDS. An entry error caused this student's graduation to not be recorded timely at the campus level, as it was initially erroneously recorded as withdrawn. Subsequent to the audit testing performed, the proper status of graduated at the campus level was reported.Recommendation - The University should implement controls to ensure student status changes are reported correctly and within the required time frame.Views of Responsible Officials and Corrective Action Plan - The University concurs with the findings and recommendations. The University is taking actions to ensure that student status changes are reported to the National Student Loan Data System (NSLDS) in a timely manner.One student was not reported as withdrawn for the period of time the School of Medicine (SOM) was finalizing their degree certification. While the graduation was reported in a timely fashion from the time the SOM certified the degree, the Office of the Registrar will work with the SOM to report such students as withdrawn and then update their graduation status within the required time frame once their degree is certified.The second student graduated from their undergraduate program, but then continued to be enrolled at the University in a graduate program. Due to a procedural error, the student?s graduation from his undergraduate program was not reported to the NSLDS timely. The University identified this issue, and corrective measures were put into place at that time. All files were correctly updated, and this issue should not reoccur. The third student was reported as graduated at the program level to the NSLDS, but their campus level was reported as withdrawn. The student was required to be manually processed on the University?s third-party servicer?s database in order to report their graduation. There is no error message or report to identify students in this situation. As this is not a problem with data in the University?s administrative system, the University will work with its servicer to identify students in this situation for correction.

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