Audit 388562

2025-001: Incorrect Pell Disbursement Amount - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.038, 84.063, 84.268, 84.379, 93.264 Grant Period - Year Ended May 31, 2025 Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $7,395 for an award year. The maximum amount is awarded to students with a zero Student Aid Index (SAI) and full-time enrollment status. Students with less than full-time enrollment or more than a zero SAI are eligible for a reduced Pell award. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students received an incorrect amount of Pell award and were under awarded an amount of $936. Cause: The University’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the students. According to the calculations, the students were under awarded Pell in the amount of $936. Recommendation: We recommend the University closely monitor all student’s enrollment status to ensure all students receive financial aid are disbursed the correct amount. Condition/Context: During our student file testing we noted two students out of forty were not disbursed the correct Pell Grant award. Based on the student’s enrollment status and need, the University under awarded the students by $936. We consider this to be an instance of noncompliance relating to the Eligibility Compliance Requirement. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.

Criteria: According to 34 CFR 685.203 an eligible independent student in their third year of school can borrow up to $5,500 in Subsidized Direct Loans and $7,000 in Unsubsidized Direct Loans. Condition/Context: During our student file testing we noted one student out of forty was disbursed the incorrect Direct Loan amount. Based on the student’s enrollment status and need this student was eligible for $5,500 in Subsidized Loans; however, the University awarded the student $4,500 in Subsidized loans which resulted in an under award of $1,000 in Subsidized Loans. We consider this error in awarding to be an instance of noncompliance of the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: A student was under awarded Subsidized Direct Loans in the amount of $1,000. Cause: The University’s internal controls did not identify the fact that the student was under awarded Subsidized Direct Loans in the amount of $1,000. Recommendation: We recommend the University closely monitor all students who receive direct loans and verify that they receive the proper amount of Subsidized Direct Loans. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.