FAC Explorer

Audit 309623

FY End
2023-09-30
Total Expended
$104.05M
Findings
8
Programs
49
Organization: Troy University (AL)
Year: 2023 Accepted: 2024-06-24
Auditor: Examiners of Public Accounts

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
401662 2023-001 Significant Deficiency - N
401663 2023-001 Significant Deficiency - N
401664 2023-002 Material Weakness - E
401665 2023-002 Material Weakness - E
978104 2023-001 Significant Deficiency - N
978105 2023-001 Significant Deficiency - N
978106 2023-002 Material Weakness - E
978107 2023-002 Material Weakness - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $68.14M Yes 2
84.063 Federal Pell Grant Program $23.30M Yes 2
11.609 Measurement and Engineering Research and Standards $1.90M - 0
93.516 Public Health Training Centers Program $864,696 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $845,773 Yes 0
84.042 Trio_student Support Services $807,388 Yes 0
84.033 Federal Work-Study Program $713,699 Yes 0
84.129 Rehabilitation Long-Term Training $598,414 - 0
84.031 Higher Education_institutional Aid $409,762 - 0
93.434 Every Student Succeeds Act/preschool Development Grants $360,135 - 0
84.047 Trio_upward Bound $301,421 Yes 0
84.335 Child Care Access Means Parents in School $184,385 - 0
16.710 Public Safety Partnership and Community Policing Grants $174,125 - 0
93.643 Children's Justice Grants to States $172,901 - 0
84.287 Twenty-First Century Community Learning Centers $157,217 - 0
84.217 Trio_mcnair Post-Baccalaureate Achievement $148,078 Yes 0
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) $132,789 - 0
10.215 Sustainable Agriculture Research and Education $131,498 - 0
17.258 Wia Adult Program $124,201 - 0
84.027 Special Education_grants to States $116,029 - 0
93.264 Nurse Faculty Loan Program (nflp) $111,808 Yes 0
93.391 Covid-19 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $107,816 - 0
84.184 School Safely National Activities $71,154 - 0
84.425 Covid-19 Elementary and Secondary School Emergency Relief Fund $63,750 - 0
84.177 Rehabilitation Services_independent Living Services for Older Individuals Who Are Blind $62,526 - 0
84.126 Rehabilitation Services_vocational Rehabilitation Grants to States $60,254 - 0
10.351 Rural Business Development Grant $52,361 - 0
47.041 Engineering $46,762 - 0
15.615 Cooperative Endangered Species Conservation Fund $46,598 - 0
66.951 Environmental Education Grants Program $44,798 - 0
59.037 Small Business Development Centers $33,899 - 0
10.558 Child and Adult Care Food Program $33,135 - 0
10.707 Research Joint Venture and Cost Reimbursable Agreements $25,177 - 0
47.076 Education and Human Resources $22,982 - 0
66.130 Gulf Coast Ecosystem Restoration Council Comprehensive Plan Component $17,571 - 0
19.021 Investing in People in the Middle East and North Africa $14,684 - 0
45.024 Promotion of the Arts_grants to Organizations and Individuals $10,700 - 0
19.009 Academic Exchange Programs - Undergraduate Programs $10,200 - 0
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $8,496 - 0
16.812 Second Chance Act Reentry Initiative $5,520 - 0
93.630 Developmental Disabilities Basic Support and Advocacy Grants $4,000 - 0
17.259 Wia Youth Activities $3,880 - 0
20.205 Highway Planning and Construction $3,418 - 0
15.634 State Wildlife Grants $2,430 - 0
45.129 Promotion of the Humanities_federal/state Partnership $2,069 - 0
10.912 Environmental Quality Incentives Program $1,175 - 0
10.699 Partnership Agreements $1,158 - 0
66.468 Capitalization Grants for Drinking Water State Revolving Funds $1,000 - 0
59.065 Growth Accelerator Fund Competition $315 - 0

Contacts

Name Title Type
NWQTQ4Q91NW5 Dr. Jim Bookout Auditee
3346703108 Melissa Knepper Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The university used the negotiated Facilities & administrative cost rate. The accompanying Schedule of Expenditures of Federal Awards (the “Schedule”) includes the federal award activity of Troy University, under programs of the federal government for the year ended September 30, 2023. The information in this Schedule is presented in accordance with the requirements of Title 2 U. S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Troy University, it is not intended to and does not present the financial position, changes in net position, or cash flows of Troy University.
Title: Summary of Significant Accounting Policies Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The university used the negotiated Facilities & administrative cost rate. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement.
Title: Indirect Cost Rate Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. De Minimis Rate Used: N Rate Explanation: The university used the negotiated Facilities & administrative cost rate. Troy University has elected not to use the 10-percent de minimis indirect cost rate as allowed in the Uniform Guidance.

Finding Details

Finding 2023-001
Reference Number: 2023-001 Compliance Requirement: Special Tests and Provisions Type of Finding: Compliance and Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to properly determine if a return to Title IV was necessary. Finding According to 34 CFR 668.22, when a Title IV grant recipient withdraws from an institution during a period in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance earned by the student as of the student’s withdrawal date. If the total amount of Title IV grant or loan assistance that the student earned is less than the amount of Title IV grant or loan assistance that was disbursed to the student, the difference must be returned to the Title IV programs. If the amount of Title IV grant or loan assistance that the student earned is greater than the amount of Title IV grant or loan assistance that was disbursed to the student, the amounts must be treated as a post withdrawal disbursement. Title IV aid is considered 100% earned by the student if 60% of the payment period or period of enrollment has occurred after the student’s withdrawal date. Guidance indicates that regardless of when the student withdraws, a return of Title IV funds (R2T4) must be performed if all Title IV grant or loan assistance was not already disbursed prior to the withdrawal. If all aid was disbursed the financial aid administrator can just note in the student’s file that no R2T4 calculation is required after the 60 percent point and all aid was disbursed, so there cannot be a post-withdrawal disbursement. In order to test R2T4s, a sample of twenty-five students was selected from a population of 154 student records identified as receiving all F's or total withdrawals during the financial aid award year. The procedures used by the University include performing a R2T4 for students that officially withdraw up to and after the 60% point. Audit tests revealed the University did not calculate a R2T4 for one student in a payment period who was a total withdrawal. The student officially withdrew after the 60% point from four payment periods during the financial aid year, but the University only performed three R2T4 calculations. Although calculations during the audit revealed that the student had earned all of the Title IV aid and no post-withdrawal disbursement was required, the University failed to either perform a R2T4 calculation or note in the student’s file that no return or post-withdrawal disbursement was needed. Recommendation The University should develop and consistently follow procedures used to perform Title IV refund calculations for students that withdraw after the 60 percent point that comply with Title 34 of the Code of Federal Regulations, Part 668.22. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-001
Reference Number: 2023-001 Compliance Requirement: Special Tests and Provisions Type of Finding: Compliance and Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to properly determine if a return to Title IV was necessary. Finding According to 34 CFR 668.22, when a Title IV grant recipient withdraws from an institution during a period in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance earned by the student as of the student’s withdrawal date. If the total amount of Title IV grant or loan assistance that the student earned is less than the amount of Title IV grant or loan assistance that was disbursed to the student, the difference must be returned to the Title IV programs. If the amount of Title IV grant or loan assistance that the student earned is greater than the amount of Title IV grant or loan assistance that was disbursed to the student, the amounts must be treated as a post withdrawal disbursement. Title IV aid is considered 100% earned by the student if 60% of the payment period or period of enrollment has occurred after the student’s withdrawal date. Guidance indicates that regardless of when the student withdraws, a return of Title IV funds (R2T4) must be performed if all Title IV grant or loan assistance was not already disbursed prior to the withdrawal. If all aid was disbursed the financial aid administrator can just note in the student’s file that no R2T4 calculation is required after the 60 percent point and all aid was disbursed, so there cannot be a post-withdrawal disbursement. In order to test R2T4s, a sample of twenty-five students was selected from a population of 154 student records identified as receiving all F's or total withdrawals during the financial aid award year. The procedures used by the University include performing a R2T4 for students that officially withdraw up to and after the 60% point. Audit tests revealed the University did not calculate a R2T4 for one student in a payment period who was a total withdrawal. The student officially withdrew after the 60% point from four payment periods during the financial aid year, but the University only performed three R2T4 calculations. Although calculations during the audit revealed that the student had earned all of the Title IV aid and no post-withdrawal disbursement was required, the University failed to either perform a R2T4 calculation or note in the student’s file that no return or post-withdrawal disbursement was needed. Recommendation The University should develop and consistently follow procedures used to perform Title IV refund calculations for students that withdraw after the 60 percent point that comply with Title 34 of the Code of Federal Regulations, Part 668.22. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Compliance and Internal Control Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $14,609.00 The University failed to verify whether students began attendance in classes prior to disbursing Title IV aid. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Twenty-five students were selected for return to Title IV testing from a population of student records identified by the University as students receiving all F’s or total withdrawals for the financial aid award year. Although these students did not require a return to Title IV, it was noted during this test that four students had not begun attendance in all classes or never attended any classes for the term enrolled. Further testing revealed the University failed to properly verify attendance for these students and recalculate the federal financial assistance based on the enrollment or change in enrollment status, as required. Failure to review changes in enrollment status and recalculate awards as required could result in overawards to noneligible recipients and noncompliance in the Title IV programs. These students were awarded $8,313 in Pell and $6,296 in Direct Loans which resulted in overawards of these amounts. Recommendation The University should verify whether students begin attendance in registered classes and recalculate Federal Pell Grant and Federal Direct Student Loan awards based on enrollment or change in enrollment status, in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Compliance and Internal Control Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $14,609.00 The University failed to verify whether students began attendance in classes prior to disbursing Title IV aid. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Twenty-five students were selected for return to Title IV testing from a population of student records identified by the University as students receiving all F’s or total withdrawals for the financial aid award year. Although these students did not require a return to Title IV, it was noted during this test that four students had not begun attendance in all classes or never attended any classes for the term enrolled. Further testing revealed the University failed to properly verify attendance for these students and recalculate the federal financial assistance based on the enrollment or change in enrollment status, as required. Failure to review changes in enrollment status and recalculate awards as required could result in overawards to noneligible recipients and noncompliance in the Title IV programs. These students were awarded $8,313 in Pell and $6,296 in Direct Loans which resulted in overawards of these amounts. Recommendation The University should verify whether students begin attendance in registered classes and recalculate Federal Pell Grant and Federal Direct Student Loan awards based on enrollment or change in enrollment status, in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-001
Reference Number: 2023-001 Compliance Requirement: Special Tests and Provisions Type of Finding: Compliance and Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to properly determine if a return to Title IV was necessary. Finding According to 34 CFR 668.22, when a Title IV grant recipient withdraws from an institution during a period in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance earned by the student as of the student’s withdrawal date. If the total amount of Title IV grant or loan assistance that the student earned is less than the amount of Title IV grant or loan assistance that was disbursed to the student, the difference must be returned to the Title IV programs. If the amount of Title IV grant or loan assistance that the student earned is greater than the amount of Title IV grant or loan assistance that was disbursed to the student, the amounts must be treated as a post withdrawal disbursement. Title IV aid is considered 100% earned by the student if 60% of the payment period or period of enrollment has occurred after the student’s withdrawal date. Guidance indicates that regardless of when the student withdraws, a return of Title IV funds (R2T4) must be performed if all Title IV grant or loan assistance was not already disbursed prior to the withdrawal. If all aid was disbursed the financial aid administrator can just note in the student’s file that no R2T4 calculation is required after the 60 percent point and all aid was disbursed, so there cannot be a post-withdrawal disbursement. In order to test R2T4s, a sample of twenty-five students was selected from a population of 154 student records identified as receiving all F's or total withdrawals during the financial aid award year. The procedures used by the University include performing a R2T4 for students that officially withdraw up to and after the 60% point. Audit tests revealed the University did not calculate a R2T4 for one student in a payment period who was a total withdrawal. The student officially withdrew after the 60% point from four payment periods during the financial aid year, but the University only performed three R2T4 calculations. Although calculations during the audit revealed that the student had earned all of the Title IV aid and no post-withdrawal disbursement was required, the University failed to either perform a R2T4 calculation or note in the student’s file that no return or post-withdrawal disbursement was needed. Recommendation The University should develop and consistently follow procedures used to perform Title IV refund calculations for students that withdraw after the 60 percent point that comply with Title 34 of the Code of Federal Regulations, Part 668.22. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-001
Reference Number: 2023-001 Compliance Requirement: Special Tests and Provisions Type of Finding: Compliance and Internal Control Internal Control Impact: Significant Deficiency Compliance Impact: None AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: None The University failed to properly determine if a return to Title IV was necessary. Finding According to 34 CFR 668.22, when a Title IV grant recipient withdraws from an institution during a period in which the recipient began attendance, the institution must determine the amount of Title IV grant or loan assistance earned by the student as of the student’s withdrawal date. If the total amount of Title IV grant or loan assistance that the student earned is less than the amount of Title IV grant or loan assistance that was disbursed to the student, the difference must be returned to the Title IV programs. If the amount of Title IV grant or loan assistance that the student earned is greater than the amount of Title IV grant or loan assistance that was disbursed to the student, the amounts must be treated as a post withdrawal disbursement. Title IV aid is considered 100% earned by the student if 60% of the payment period or period of enrollment has occurred after the student’s withdrawal date. Guidance indicates that regardless of when the student withdraws, a return of Title IV funds (R2T4) must be performed if all Title IV grant or loan assistance was not already disbursed prior to the withdrawal. If all aid was disbursed the financial aid administrator can just note in the student’s file that no R2T4 calculation is required after the 60 percent point and all aid was disbursed, so there cannot be a post-withdrawal disbursement. In order to test R2T4s, a sample of twenty-five students was selected from a population of 154 student records identified as receiving all F's or total withdrawals during the financial aid award year. The procedures used by the University include performing a R2T4 for students that officially withdraw up to and after the 60% point. Audit tests revealed the University did not calculate a R2T4 for one student in a payment period who was a total withdrawal. The student officially withdrew after the 60% point from four payment periods during the financial aid year, but the University only performed three R2T4 calculations. Although calculations during the audit revealed that the student had earned all of the Title IV aid and no post-withdrawal disbursement was required, the University failed to either perform a R2T4 calculation or note in the student’s file that no return or post-withdrawal disbursement was needed. Recommendation The University should develop and consistently follow procedures used to perform Title IV refund calculations for students that withdraw after the 60 percent point that comply with Title 34 of the Code of Federal Regulations, Part 668.22. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Compliance and Internal Control Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $14,609.00 The University failed to verify whether students began attendance in classes prior to disbursing Title IV aid. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Twenty-five students were selected for return to Title IV testing from a population of student records identified by the University as students receiving all F’s or total withdrawals for the financial aid award year. Although these students did not require a return to Title IV, it was noted during this test that four students had not begun attendance in all classes or never attended any classes for the term enrolled. Further testing revealed the University failed to properly verify attendance for these students and recalculate the federal financial assistance based on the enrollment or change in enrollment status, as required. Failure to review changes in enrollment status and recalculate awards as required could result in overawards to noneligible recipients and noncompliance in the Title IV programs. These students were awarded $8,313 in Pell and $6,296 in Direct Loans which resulted in overawards of these amounts. Recommendation The University should verify whether students begin attendance in registered classes and recalculate Federal Pell Grant and Federal Direct Student Loan awards based on enrollment or change in enrollment status, in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.
Finding 2023-002
Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Compliance and Internal Control Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $14,609.00 The University failed to verify whether students began attendance in classes prior to disbursing Title IV aid. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Twenty-five students were selected for return to Title IV testing from a population of student records identified by the University as students receiving all F’s or total withdrawals for the financial aid award year. Although these students did not require a return to Title IV, it was noted during this test that four students had not begun attendance in all classes or never attended any classes for the term enrolled. Further testing revealed the University failed to properly verify attendance for these students and recalculate the federal financial assistance based on the enrollment or change in enrollment status, as required. Failure to review changes in enrollment status and recalculate awards as required could result in overawards to noneligible recipients and noncompliance in the Title IV programs. These students were awarded $8,313 in Pell and $6,296 in Direct Loans which resulted in overawards of these amounts. Recommendation The University should verify whether students begin attendance in registered classes and recalculate Federal Pell Grant and Federal Direct Student Loan awards based on enrollment or change in enrollment status, in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.