Criteria OMB Compliance Supplement, 34 CFR section 690.62 and 690.63: Upon determining a student’s eligibility for a Federal Pell Grant award, an institution must calculate and disburse aid to an eligible student based on the annual Pell Grant limitations set forth by Congress, the student’s enrollment intensity, the student’s cost of attendance and the student aid index (SAI). Condition Significant Deficiency in Internal Control over Compliance and Noncompliance – For two of the forty students tested for Saddleback College, the College inaccurately calculated the student’s Pell Grant award based on the student’s enrollment intensity which resulted in an underpayment to both students. Context There were approximately 3,900 students who received Federal Pell Grants from Saddleback College during the year ended June 30, 2025. Effect Without proper review of students’ eligibility records, the College is at risk of noncompliance with the above referenced criteria. Cause The College’s review processes were not adequately designed to identify instances of noncompliance over the calculation of student Pell Grant awards. Recommendation The College should strengthen internal controls over the review of student Pell Grant awards and disbursements to ensure accuracy.