Criteria
According to 34 CFR Section 690.62(a):
Calculation of a Federal Pell Grant: 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.
According to 34 CFR Section 690.2(c):
Annual award: The Federal Pell Grant award amount a full-time student would receive under the
payment schedule for a full academic year in an award year, and the amount a three-quarter
time, half-time, and less-than-half-time student would receive under the appropriate disbursement
schedule for being enrolled in that enrollment status for a full academic year in an award year.
Disbursement Schedule: A table showing the annual awards that three-quarter, half-time, and
less-than-half-time students at term-based institutions using credit hours would receive for an
academic year. This table is published annually by the Secretary and is based on:
(1) A student's expected family contribution, as determined in accordance with Title IV,
Part F of the HEA; and
(2) A student's attendance costs as defined in Title IV, Part F of the HEA.
(3) The amount of funds available for making Federal Pell Grants.
Condition
Federal regulations require institutions to award Federal Pell Grants in accordance with the appropriate
disbursement schedule for three-quarter, half-time, and less-than-half-time students based on the
students’ EFC and cost of attendance.
During our testing of forty students, one student was not awarded the proper amount of Pell Grant funds.
Cause
The College had to calculate the student’s financial aid manually based on the type of certification
program the student was enrolled in. The student’s Federal Pell Grant was correctly calculated based on
the student’s enrollment status, expected family contribution, and attendance costs; however, the total
amount of funds disbursed was more than what was originally calculated. Inaccurate disbursing of the
award was caused by human error while inputting the calculated Pell award which was not identified prior
to disbursing the funds to the student.
Effect
By inputting the incorrect award, the student was over awarded Federal Pell Grant Costs
Questioned Costs
Federal Pell Grant overpayment of $128. Perspective
Our sample was not, and was not intended to be, statistically valid. Of the forty students selected for
testing, one student, or 2.5% of our sample, received an incorrect Federal Pell Grant award.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
We recommend that management of the College review, and if necessary, update, the policies and
procedures for awarding aid and ensuring enrollment statuses are correct to ensure Federal Pell Grant
award amounts are properly calculated. Additionally, financial aid awards should be reviewed by
management prior to disbursing funds to students.
View of Responsible Officials
The College agrees with the finding.
Criteria
According to 34 CFR Section 685.304(b)(1):
A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or
Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan
borrower shortly before the student borrower ceases at least half-time study at the school.
According to 34 CFR Section 685.304(b)(7):
The school must maintain documentation substantiating the school's compliance with this section
for each student borrower.
Condition
Federal regulations require institutions to perform exit counseling for all graduates and withdrawn
students who borrow Federal Direct Student Loans.
During our testing of forty students, one student who was awarded a Federal Direct Student Loan and
graduated in the fiscal year did not receive exit counseling.
Cause
During review of Federal Direct Student Loan borrowers who graduated, the College recognized that only
students who had a manual Direct Student Loan exit requirement (“DLEXIT”) added into their record were
sent the required exit counseling notification letter. The DLEXIT requirement added to the applicable
student recorded is needed to trigger creation and mailing of the Director Loan exiting counseling letter.
The College became aware that job code (“RRREXIT”) out of their Enterprise Resource Planning system
(“Banner”) had not been manually run. RRREXIT is a Banner job that identifies Direct Student Loan
borrowers who have graduated, dropped below half-time, or withdrew completely and adds the DLEXIT
requirement onto the student’s records. The staff member responsible for running the entire Direct
Student Loan counseling letter process did not carry that part of the process.
Effect
The College did not provide exit counseling to a graduate student who was awarded Federal Direct
Student Loans.
Questioned Costs
Not applicable
Perspective
Our sample was not, and was not intended to be, statistically valid. Of forty students selected for testing,
one student, or 2.5% of our sample, did not receive exit counseling.
Identification as a Repeat Finding, if applicable
Not applicable Recommendation
We recommend that management of the College review, and if necessary, update the policies and
procedures for Federal Direct Student Loan exit counseling notifications. Additionally, the staff members
involved in process should have proper training and be made aware of all the compliance requirements
for which they are responsible.
View of Responsible Officials
The College agrees with the finding.
Criteria
According to 34 CFR Section 690.62(a):
Calculation of a Federal Pell Grant: 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.
According to 34 CFR Section 690.2(c):
Annual award: The Federal Pell Grant award amount a full-time student would receive under the
payment schedule for a full academic year in an award year, and the amount a three-quarter
time, half-time, and less-than-half-time student would receive under the appropriate disbursement
schedule for being enrolled in that enrollment status for a full academic year in an award year.
Disbursement Schedule: A table showing the annual awards that three-quarter, half-time, and
less-than-half-time students at term-based institutions using credit hours would receive for an
academic year. This table is published annually by the Secretary and is based on:
(1) A student's expected family contribution, as determined in accordance with Title IV,
Part F of the HEA; and
(2) A student's attendance costs as defined in Title IV, Part F of the HEA.
(3) The amount of funds available for making Federal Pell Grants.
Condition
Federal regulations require institutions to award Federal Pell Grants in accordance with the appropriate
disbursement schedule for three-quarter, half-time, and less-than-half-time students based on the
students’ EFC and cost of attendance.
During our testing of forty students, one student was not awarded the proper amount of Pell Grant funds.
Cause
The College had to calculate the student’s financial aid manually based on the type of certification
program the student was enrolled in. The student’s Federal Pell Grant was correctly calculated based on
the student’s enrollment status, expected family contribution, and attendance costs; however, the total
amount of funds disbursed was more than what was originally calculated. Inaccurate disbursing of the
award was caused by human error while inputting the calculated Pell award which was not identified prior
to disbursing the funds to the student.
Effect
By inputting the incorrect award, the student was over awarded Federal Pell Grant Costs
Questioned Costs
Federal Pell Grant overpayment of $128. Perspective
Our sample was not, and was not intended to be, statistically valid. Of the forty students selected for
testing, one student, or 2.5% of our sample, received an incorrect Federal Pell Grant award.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
We recommend that management of the College review, and if necessary, update, the policies and
procedures for awarding aid and ensuring enrollment statuses are correct to ensure Federal Pell Grant
award amounts are properly calculated. Additionally, financial aid awards should be reviewed by
management prior to disbursing funds to students.
View of Responsible Officials
The College agrees with the finding.
Criteria
According to 34 CFR Section 685.304(b)(1):
A school must ensure that exit counseling is conducted with each Direct Subsidized Loan or
Direct Unsubsidized Loan borrower and graduate or professional student Direct PLUS Loan
borrower shortly before the student borrower ceases at least half-time study at the school.
According to 34 CFR Section 685.304(b)(7):
The school must maintain documentation substantiating the school's compliance with this section
for each student borrower.
Condition
Federal regulations require institutions to perform exit counseling for all graduates and withdrawn
students who borrow Federal Direct Student Loans.
During our testing of forty students, one student who was awarded a Federal Direct Student Loan and
graduated in the fiscal year did not receive exit counseling.
Cause
During review of Federal Direct Student Loan borrowers who graduated, the College recognized that only
students who had a manual Direct Student Loan exit requirement (“DLEXIT”) added into their record were
sent the required exit counseling notification letter. The DLEXIT requirement added to the applicable
student recorded is needed to trigger creation and mailing of the Director Loan exiting counseling letter.
The College became aware that job code (“RRREXIT”) out of their Enterprise Resource Planning system
(“Banner”) had not been manually run. RRREXIT is a Banner job that identifies Direct Student Loan
borrowers who have graduated, dropped below half-time, or withdrew completely and adds the DLEXIT
requirement onto the student’s records. The staff member responsible for running the entire Direct
Student Loan counseling letter process did not carry that part of the process.
Effect
The College did not provide exit counseling to a graduate student who was awarded Federal Direct
Student Loans.
Questioned Costs
Not applicable
Perspective
Our sample was not, and was not intended to be, statistically valid. Of forty students selected for testing,
one student, or 2.5% of our sample, did not receive exit counseling.
Identification as a Repeat Finding, if applicable
Not applicable Recommendation
We recommend that management of the College review, and if necessary, update the policies and
procedures for Federal Direct Student Loan exit counseling notifications. Additionally, the staff members
involved in process should have proper training and be made aware of all the compliance requirements
for which they are responsible.
View of Responsible Officials
The College agrees with the finding.