Audit 336066

Section III – Federal Award Findings and Questioned Costs 2024-001 – Non-compliance with Eligibility and Disbursement Requirements for the Federal Pell Grant Program Grantor: Department of Education Program Name: Federal Pell Grant Program Award Year: 7/1/2023 – 6/30/2024 Award Number: P063P230300 Assistance Listing Number: 84.063 Criteria: Per 34 CFR 690.62(a), “the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year”. Per 34 CFR 690.63(b), “the Federal Pell Grant for a payment period, i.e. an academic term, for a student in a program using standard terms with at least 30 weeks of instructional time in two semesters or trimesters or in three quarters as described in paragraph (a)(1)(ii)(A) of this section, is calculated by – (1) Determining his or her enrollment status for the term; (2) Based upon that enrollment status, determining his or her annual award from the Payment Schedule for full-time students or the Disbursement Schedule for three-quarter-time, half-time, or less-than-half-time students; and (3) Dividing the amount described under paragraph (b)(2) of this section by – (i) Two at institutions using semesters or trimesters or three at institutions using quarters; or (ii) The number of terms over which the institution chooses to distribute the student’s annual award if – (A) An institution chooses to distribute all of the student’s annual award determined under paragraph (b)(2) of this section over more than two terms at institutions using semesters or trimesters or more than three quarters at institutions using quarters; and (B) The number of weeks of instructional time in the terms, including the additional term or terms, equals the weeks of instructional time in the program’s academic year.” Condition: Through testing a sample of 25 students who were awarded and disbursed federal financial aid in accordance with Eligibility and Disbursement compliance requirements as prescribed by the OMB Compliance Supplement, one student selected was awarded and disbursed aid from the Federal Pell Grant Program in excess of what was calculated based on the student’s half-time enrollment status per the Disbursement Schedule for the spring 2024 semester. Cause: The cause of this finding was due to human error when updating the student’s financial aid profile in the student information system, Banner. The student was initially enrolled as a full-time student, the student’s Federal Pell Grant was calculated using full time enrollment and entered into the financial aid package for the semester in Banner. The student dropped to half-time enrollment in the middle of the semester at which point the student’s aid under the Federal Pell Grant was also reduced to reflect the appropriate amount at half-time enrollment. However, towards the end of the semester, the student withdrew entirely prompting a return of Title IV calculation to determine if the student’s financial aid package required adjustment. Upon finalizing review of the Title IV calculation and the student’s updated leave status in the Banner system, the award amount for the Federal Pell Grant was never adjusted to reflect the student’s half-time status. As the awarded amount was never updated, once the student’s financial aid package was locked in the Banner system after the student’s withdrawal, the system automatically disbursed the additional amount of Federal Pell Grant funds to the student’s bursar account. Effect: The student was incorrectly awarded and disbursed aid under the Federal Pell Grant Program in excess of the amount eligible resulting in an overpayment of approximately $1,335. Questioned Costs: $1,335 overpayment of Federal Pell Grant Program Recommendation: We recommend the Institute provide additional training to individuals involved in the process to ensure changes made to financial aid packages are appropriate and in accordance with requirements. Additionally, we recommend the Institute enhance its existing controls regarding the reconciliation of student financial records to the Department of Education’s Common Origination and Disbursement system. Management’s Views and Corrective Action Plan: Management’s response is included in “Management’s Views and Corrective Action Plan” included on the report.

Section III – Federal Award Findings and Questioned Costs 2024-001 – Non-compliance with Eligibility and Disbursement Requirements for the Federal Pell Grant Program Grantor: Department of Education Program Name: Federal Pell Grant Program Award Year: 7/1/2023 – 6/30/2024 Award Number: P063P230300 Assistance Listing Number: 84.063 Criteria: Per 34 CFR 690.62(a), “the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year”. Per 34 CFR 690.63(b), “the Federal Pell Grant for a payment period, i.e. an academic term, for a student in a program using standard terms with at least 30 weeks of instructional time in two semesters or trimesters or in three quarters as described in paragraph (a)(1)(ii)(A) of this section, is calculated by – (1) Determining his or her enrollment status for the term; (2) Based upon that enrollment status, determining his or her annual award from the Payment Schedule for full-time students or the Disbursement Schedule for three-quarter-time, half-time, or less-than-half-time students; and (3) Dividing the amount described under paragraph (b)(2) of this section by – (i) Two at institutions using semesters or trimesters or three at institutions using quarters; or (ii) The number of terms over which the institution chooses to distribute the student’s annual award if – (A) An institution chooses to distribute all of the student’s annual award determined under paragraph (b)(2) of this section over more than two terms at institutions using semesters or trimesters or more than three quarters at institutions using quarters; and (B) The number of weeks of instructional time in the terms, including the additional term or terms, equals the weeks of instructional time in the program’s academic year.” Condition: Through testing a sample of 25 students who were awarded and disbursed federal financial aid in accordance with Eligibility and Disbursement compliance requirements as prescribed by the OMB Compliance Supplement, one student selected was awarded and disbursed aid from the Federal Pell Grant Program in excess of what was calculated based on the student’s half-time enrollment status per the Disbursement Schedule for the spring 2024 semester. Cause: The cause of this finding was due to human error when updating the student’s financial aid profile in the student information system, Banner. The student was initially enrolled as a full-time student, the student’s Federal Pell Grant was calculated using full time enrollment and entered into the financial aid package for the semester in Banner. The student dropped to half-time enrollment in the middle of the semester at which point the student’s aid under the Federal Pell Grant was also reduced to reflect the appropriate amount at half-time enrollment. However, towards the end of the semester, the student withdrew entirely prompting a return of Title IV calculation to determine if the student’s financial aid package required adjustment. Upon finalizing review of the Title IV calculation and the student’s updated leave status in the Banner system, the award amount for the Federal Pell Grant was never adjusted to reflect the student’s half-time status. As the awarded amount was never updated, once the student’s financial aid package was locked in the Banner system after the student’s withdrawal, the system automatically disbursed the additional amount of Federal Pell Grant funds to the student’s bursar account. Effect: The student was incorrectly awarded and disbursed aid under the Federal Pell Grant Program in excess of the amount eligible resulting in an overpayment of approximately $1,335. Questioned Costs: $1,335 overpayment of Federal Pell Grant Program Recommendation: We recommend the Institute provide additional training to individuals involved in the process to ensure changes made to financial aid packages are appropriate and in accordance with requirements. Additionally, we recommend the Institute enhance its existing controls regarding the reconciliation of student financial records to the Department of Education’s Common Origination and Disbursement system. Management’s Views and Corrective Action Plan: Management’s response is included in “Management’s Views and Corrective Action Plan” included on the report.