Audit 393699

Assistance Listing, Federal Agency, and Program Name Student Financial Assistance Cluster Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year Various Pass through Entity None Finding Type Significant deficiency Repeat Finding No Criteria The institution shall recalculate a Federal Pell Grant award for the entire award year if the student's expected family contribution changes at any time during the award year. The change may result from (i) The correction of a clerical or arithmetic error under § 690.14; or submission of inaccurate information (ii) A correction based on information required as a result of verification under 34 CFR part 668, subpart E. CFR 34 690.80. Condition Out of 22 students tested for Pell eligibility we identified one student whose student aid index (formerly known as expected family contribution) was changed, however the additional award was never disbursed to the student. Questioned Costs $892 Identification of How Questioned Costs Were Computed The $892 of questioned costs were determined by calculating the total pell required based on the final adjusted student aid index compared to the aid disbursed to the student. Context The College did not have appropriate controls in place to identify students who received a new student aid index information after the initial disbursement of Pell. Out of our sample of 22 students tested for eligibility, one student received a correction that increased the students award, however it was not disbursed. Cause and Effect The College did not have appropriate controls in place to review the changes to the student aid index. As a result, the College did not award and disburse the appropriate amount to the student. Recommendation The College should implement procedures and controls to review all students who received revisions to the Institutional Student Information Record or the department of educations electronic data exchange through its central processor. Views of Responsible Officials and Planned Corrective Actions System generated ISIR’s and corrections will be reviewed for changes and then given to the Director for weekly review to ensure the updates and awards are accurate and complete.

Assistance Listing, Federal Agency, and Program Name Student Financial Assistance Cluster Federal Direct Student Loans Program (ALN 84.268), Federal Supplemental Educational Opportunity Grant Program (ALN 84.007), and Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year Various Pass through Entity None Finding Type Material weakness and material noncompliance with laws and regulations Repeat Finding No Criteria If a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, but before he or she has attended 60 percent of the scheduled length of the semester, the school must perform a return of Title IV funds (R2T4) calculation. If the amount disbursed to the student is greater than the amount the student earned, the unearned funds must be returned. A school must return unearned funds for which it is responsible no later than 45 days from the determination of a student's withdrawal (30 days if never attended) (34 CFR 668.220)(1)). When a recipient of Title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the recipient began attendance, the institution must determine the amount of Title IV aid earned by the student as of the student's withdrawal date. The institution must return, in the order specified in paragraph (i) of this section, the lesser of (i) The total amount of unearned title IV assistance to be returned as calculated under paragraph (e)(4) of this section; or (ii) An amount equal to the total institutional charges incurred by the student for the payment period or period of enrollment multiplied by the percentage of title IV grant or loan assistance that has not been earned by the student (34 CFR 668.220)(g)(1) Condition Out of 40 students tested for return to Title IV, we identified 2 students whose calculation were performed outside of the required timeframe. Questioned Costs N/A Identification of How Questioned Costs Were Computed N/A Context The College did not include institutional charges on returns during the fall 2024 semester and resulted in calculations that were not accurate. Management identified 40 students with inaccurate returns and corrected those returns, however 34 were completed outside of the allowable timeframe for completing the returns. Cause and Effect The College did not have appropriate controls in place to review the accuracy of the inputs used in performing the calculations. As a result, the College did not initially perform accurate calculations which caused revisions that were not timely. Recommendation The College should implement procedures and controls to review all inputs used in the Title IV calculations is accurate. Views of Responsible Officials and Corrective Action Plan Once the report identifying students who have completely withdrawn from their classes is ran, the calculations are done (currently by the Dean) The completed report is given to the FA Specialist to review and send the letters. The specialist then gives the report to the Assistant Director who then prints off a Return of Title IV summary report showing the calculations and charges for final review. Had this last step been done previously, it would have been identified that the Institutional Charges were missing and not requiring corrections.