Finding 2022-002: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): During the year ended May 31, 2022, the U.S. Department of Education (ED) finalized a Focused Program Review (OPE ID: 00301200) (FPR) regarding the University?s participation in the Experimental Sites Initiative (ESI), which includes the ?Pell for Students Who Are Incarcerated? experiment (Second Chance Pell), by the issuing the Final Program Review Determination (FPRD) on September 16, 2022. The FPR evaluated the University?s compliance with rules and regulations regarding participation in the ESI, specifically the Second Chance Pell program for the 2019-2020 and 2020-2021 federal award years. The FPRD contained certain findings related to the University?s interpretation of and compliance with the Code of Federal Regulations (CFR) and ED?s policies and procedures. ED determined that students who participated in the Second Chance Pell program were not participating in their respective enrolled academic programs in a standard instruction term program, but instead a separate nonstandard instruction term program (Program). During the FPR, ED determined this Program to be less than 30 weeks of instructional time and, as a result, required the University to utilize an alternative payment Formula calculation period for the Federal Pell Grant (Pell). As part of our audit of the University for the year ended May 31, 2022, we considered the results of the FPRD to determine if similar conditions existed for the 2021-2022 federal award year. c. Condition: As part of our audit for the 2021-2022 federal award year, we determined that the University used the same determination for the payment period for those students who had been awarded Pell grants that it had been using in the periods for which ED conducted the FPR. In addition to the population of students who are participating the Second Chance Pell program, the University also identified additional students, that when using ED?s interpretation of the CFR, were utilizing a payment period that did not reflect enrollment in nonstandard instructional term program. d. Cause: As noted in the FRPD, ED indicated that, according to its interpretation of the CFR, students who participate in academic programs with courses that have nonstandard instructional terms should utilize either Pell Formula 2 or 3 to determine the payment period, in accordance with the Federal Student Aid Handbook, Chapter 3 - Calculating Pell and Iraq and Afghanistan Service Grant Awards (Handbook). e. Effect or potential effect: As a result of ED?s determination in the FPRD that during the periods covered by the FPR, students participating in the University?s Second Chance Pell program were enrolled in an academic program utilizing a nonstandard instructional term and the University utilized the same payment formula calculation period for the 2021- 2022 federal award year as it did for the 2019-2020 and 2020-2021 federal award years. In addition to the students who are part of the Second Chance Pell population, when applying ED?s interpretation, the University identified additional students who were participating in nonstandard instructional terms who should also have used Pell Formula 3 as well. As a result, the University removed the amount associated with this finding as allowable Total Federal Expenditures in the accompanying Schedule of Expenditures of Federal Awards (Schedule) for the year ended May 31, 2022. This matter resulted in the qualification of the Independent Auditors? Report on Compliance for Each Major Program and Internal Control Over Compliance for the Student Financial Assistance - Cluster major program for the year ended May 31, 2022, due to the amount of questioned costs and the prevalence of the matters on attributes that are direct and material for this program. This matter impacts the University?s compliance with the Eligibility and Special Tests and Provisions attributes. f. Questioned costs: Management of the University conducted a review of all Pell awarding records for students who were enrolled in nonstandard instructional term programs as determined by ED during the FPR for the 2021-2022 federal award year and compared the amount originally awarded by the University to the amount that would have been awarded using Formula 3, as defined in the Handbook. As a result, questioned costs of $2,329,736 were identified. This amount has been removed as allowable Total Federal Expenditures in the accompanying Schedule for the year ended May 31, 2022. g. Context: For the three semesters included in fiscal year ended May 31, 2022, the University on average served approximately 3,600 incarcerated students enrolled in approximately 26,000 credit hours per semester. This finding impacted 5,687 disbursements for individuals who participated in the Second Chance Pell program during 2021-2022 federal award year, as well as 620 additional disbursements who also participated in other nonstandard instructional term programs. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review the instructional period for students participating in the nonstandard instructional term program according to ED?s interpretation and apply the rules regarding the payment period within the Handbook based on the program length. j. Views of responsible officials: Management does not concur with the criteria of this finding due to a disagreement with the interpretation of the regulations included in the FPRD and has appealed the finding as stated in the following paragraphs. Management followed the direction received from the ED Reviewers during the FPR exit interview on September 24, 2021 stating the University should not change its practice for the Second Chance Pell students enrolled in their respective instructional program nor the calculation using Formula 1 for the payment period until the Program Review Report (PRR) is received. The PRR was received on January 3, 2022, which was after the summer and fall 2021 semesters and just weeks prior to the start of the spring 2022 semester. Moreover, pursuant to the Higher Education Act ?498A(b), the University was entitled to an opportunity to review the PRR and, within 60 days of receipt, submit a response for ED?s review prior to it preparing a final determination. The University submitted its response to the PRR on March 11, 2022. The University disagrees with the determinations in the FPRD and is vigorously defending itself against the ED interpretation of the regulations, the findings and the proposed financial assessments. The University filed an appeal of the findings and the associated financial assessments contained in the FPRD on October 24, 2022, and submitted a brief in support of the appeal on January 22, 2023, to the ED Office of Hearings and Appeals within the guidelines as prescribed by the Higher Education Act ? 487(b)(2) and U.S.C. ? 1094(b)(2). Effective with the fall 2022 semester term and with each fall and spring term thereafter, Second Chance Pell students enrolled in their respective instructional programs have a 15 week standard instructional term and the payment period qualifies for calculations utilizing Pell Formula 1.
Finding 2022-003: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): Institutions are required to submit for the Federal Direct Loan, Pell Grant, Teacher Education Assistance For College And Higher Education Grant, and Iraq & Afghanistan Service Grant origination and disbursement records to the ED?s Common Origination and Disbursement (COD). Institutions may do this by reporting once every 15 calendar days, biweekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. c. Condition: As part of our testing of the origination records, we noted that within a sample of 25 transactions there were three records that had differences between the COD data and the University?s data for their verification status codes. d. Cause: The unresolved variances in the verification codes were caused by a personnel change that resulted in the control not functioning appropriately during a period within the year ended May 31, 2022. The University has a process to ensure that uploads occurred at least every two weeks to meet the requirements of the COD, however reconciliations were not consistently performed to ensure the data agreed. e. Effect or potential effect: The University?s records did not agree to the records within the COD, which could cause inaccurate data to be used either the ED, the University, lenders or other users of the COD data. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: This finding impacts three records in a sample of 25 records tested. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review its controls, policies and procedures related to the processing of COD data to ensure that each upload is reviewed and compared and that any differences are identified and resolved appropriately and in a timely manner. j. Views of responsible officials: Management concurs with the finding. Once management was made aware of the unresolved variances of verification codes, they were corrected immediately. Upon discovery in August 2022, the Student Financial Aid Office immediately implemented additional controls and training to ensure these issues do not reoccur.
Finding 2022-004: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): If a student enrolls in a payment period that is scheduled to occur in two award years, the entire payment period must be considered to occur within one award year. The institution must determine for each Federal Pell Grant (Pell) recipient the award year in which the payment period will be placed. If an institution places the payment period in the first award year, it must pay a student with funds from the first award year, and if an institution places the payment period in the second award year, it must pay a student with funds from the second award year. An institution may not make a payment that will result in the student receiving more than 1 ? of his or her scheduled Federal Pell Grant for an award year in accordance with the requirements of 34 C.F.R. ? 690.64(a), (b). c. Condition: The University did not have an established policy and procedure to ensure that it consistently applied the regulations regarding payments of Pell if a student?s program crossed over an award year. d. Cause: The University did not have a formal policy or procedure. e. Effect or potential effect: The University could incorrectly apply the payment rules for student receiving Pell funds. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: Historically, the University has handled this process on a student-by-student basis manually without a formal policy. The University was in the process of formalizing this practice and making certain enhancements to its tracking with its accounting system, but it was not completed until after the 2021-2022 federal award year. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University establish a formal policy and procedure and ensure that all personnel responsible for the awarding of Pell are trained on how to appropriately follow the policy. j. Views of responsible officials: Management concurs with the finding. In April 2022, a formal policy and procedures addressing the awarding of Pell Grants has been established to ensure compliance, including staff training.
Finding 2022-005: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): An institution shall, upon receipt of an Enrollment Reporting roster file from the Secretary of the U.S. Department of Education (Secretary), complete and return that report within 30 days of receipt. Unless the institution expects to submit its next enrollment report to the Secretary within the next 60 days, the institution must notify the Secretary or the lender within 30 days if: the institution discovers that a federal loan has been made to or on behalf of a student who enrolled at that school but who has ceased to be enrolled on at least a half-time basis; the institution discovers that a federal loan has been made to or on behalf of a student who has been accepted for enrollment at that school but who failed to enroll on at least a half-time basis for the period for which the loan was intended; or the institution discovers that a student who is enrolled has changed his or her permanent address. See 34 C.F.R. ? 685.309(b). c. Condition: The University was required, as a result of the FPR (OPE ID: 00301200) regarding its participation in the ?Pell for Students Who Are Incarcerated? experiment (Second Chance Pell), to complete a full file review (enrollment status, effective dates, reporting dates) of all National Student Loan Data System (NSLDS) enrollment reporting for the 2019-20 and 2020-21 federal award years, and update and correct errors identified. d. Cause: ED, as a result of the FPR and the findings contained within the FPRD on September 16, 2022, required the University to update its enrollment data to correct certain errors. e. Effect or potential effect: The enrollment data for the University?s students in the NSLDS was deemed to be inaccurate by ED. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: This matter arose as a result of the FPR and findings contained within the FPR and ED?s determination that data needed to be corrected. The University commenced the process to correct the data subsequent to May 31, 2022, however the process of updating the NSLDS enrollment data is still in process as of the date of our report due to the suspension of the NSLDS system and the volume of transactions that must be changed. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review its policies and procedures to ensure there are timely and complete submissions to the NSLDS, and that training occur for those individuals who are involved in the uploading of enrollment data to the NSLDS. j. Views of responsible officials: Management concurs with the finding. The Registrar?s Office has performed a review of its policies and procedures to continue to ensure timely, accurate and complete submissions to the NSLDS. The determination of the review was that the enrollment status effective date data field required correction in the NSLDS Enrollment History system. Since the restoration of the NSLDS system in November 2022, the Registrar?s Office has been correcting the data.
Finding 2022-002: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): During the year ended May 31, 2022, the U.S. Department of Education (ED) finalized a Focused Program Review (OPE ID: 00301200) (FPR) regarding the University?s participation in the Experimental Sites Initiative (ESI), which includes the ?Pell for Students Who Are Incarcerated? experiment (Second Chance Pell), by the issuing the Final Program Review Determination (FPRD) on September 16, 2022. The FPR evaluated the University?s compliance with rules and regulations regarding participation in the ESI, specifically the Second Chance Pell program for the 2019-2020 and 2020-2021 federal award years. The FPRD contained certain findings related to the University?s interpretation of and compliance with the Code of Federal Regulations (CFR) and ED?s policies and procedures. ED determined that students who participated in the Second Chance Pell program were not participating in their respective enrolled academic programs in a standard instruction term program, but instead a separate nonstandard instruction term program (Program). During the FPR, ED determined this Program to be less than 30 weeks of instructional time and, as a result, required the University to utilize an alternative payment Formula calculation period for the Federal Pell Grant (Pell). As part of our audit of the University for the year ended May 31, 2022, we considered the results of the FPRD to determine if similar conditions existed for the 2021-2022 federal award year. c. Condition: As part of our audit for the 2021-2022 federal award year, we determined that the University used the same determination for the payment period for those students who had been awarded Pell grants that it had been using in the periods for which ED conducted the FPR. In addition to the population of students who are participating the Second Chance Pell program, the University also identified additional students, that when using ED?s interpretation of the CFR, were utilizing a payment period that did not reflect enrollment in nonstandard instructional term program. d. Cause: As noted in the FRPD, ED indicated that, according to its interpretation of the CFR, students who participate in academic programs with courses that have nonstandard instructional terms should utilize either Pell Formula 2 or 3 to determine the payment period, in accordance with the Federal Student Aid Handbook, Chapter 3 - Calculating Pell and Iraq and Afghanistan Service Grant Awards (Handbook). e. Effect or potential effect: As a result of ED?s determination in the FPRD that during the periods covered by the FPR, students participating in the University?s Second Chance Pell program were enrolled in an academic program utilizing a nonstandard instructional term and the University utilized the same payment formula calculation period for the 2021- 2022 federal award year as it did for the 2019-2020 and 2020-2021 federal award years. In addition to the students who are part of the Second Chance Pell population, when applying ED?s interpretation, the University identified additional students who were participating in nonstandard instructional terms who should also have used Pell Formula 3 as well. As a result, the University removed the amount associated with this finding as allowable Total Federal Expenditures in the accompanying Schedule of Expenditures of Federal Awards (Schedule) for the year ended May 31, 2022. This matter resulted in the qualification of the Independent Auditors? Report on Compliance for Each Major Program and Internal Control Over Compliance for the Student Financial Assistance - Cluster major program for the year ended May 31, 2022, due to the amount of questioned costs and the prevalence of the matters on attributes that are direct and material for this program. This matter impacts the University?s compliance with the Eligibility and Special Tests and Provisions attributes. f. Questioned costs: Management of the University conducted a review of all Pell awarding records for students who were enrolled in nonstandard instructional term programs as determined by ED during the FPR for the 2021-2022 federal award year and compared the amount originally awarded by the University to the amount that would have been awarded using Formula 3, as defined in the Handbook. As a result, questioned costs of $2,329,736 were identified. This amount has been removed as allowable Total Federal Expenditures in the accompanying Schedule for the year ended May 31, 2022. g. Context: For the three semesters included in fiscal year ended May 31, 2022, the University on average served approximately 3,600 incarcerated students enrolled in approximately 26,000 credit hours per semester. This finding impacted 5,687 disbursements for individuals who participated in the Second Chance Pell program during 2021-2022 federal award year, as well as 620 additional disbursements who also participated in other nonstandard instructional term programs. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review the instructional period for students participating in the nonstandard instructional term program according to ED?s interpretation and apply the rules regarding the payment period within the Handbook based on the program length. j. Views of responsible officials: Management does not concur with the criteria of this finding due to a disagreement with the interpretation of the regulations included in the FPRD and has appealed the finding as stated in the following paragraphs. Management followed the direction received from the ED Reviewers during the FPR exit interview on September 24, 2021 stating the University should not change its practice for the Second Chance Pell students enrolled in their respective instructional program nor the calculation using Formula 1 for the payment period until the Program Review Report (PRR) is received. The PRR was received on January 3, 2022, which was after the summer and fall 2021 semesters and just weeks prior to the start of the spring 2022 semester. Moreover, pursuant to the Higher Education Act ?498A(b), the University was entitled to an opportunity to review the PRR and, within 60 days of receipt, submit a response for ED?s review prior to it preparing a final determination. The University submitted its response to the PRR on March 11, 2022. The University disagrees with the determinations in the FPRD and is vigorously defending itself against the ED interpretation of the regulations, the findings and the proposed financial assessments. The University filed an appeal of the findings and the associated financial assessments contained in the FPRD on October 24, 2022, and submitted a brief in support of the appeal on January 22, 2023, to the ED Office of Hearings and Appeals within the guidelines as prescribed by the Higher Education Act ? 487(b)(2) and U.S.C. ? 1094(b)(2). Effective with the fall 2022 semester term and with each fall and spring term thereafter, Second Chance Pell students enrolled in their respective instructional programs have a 15 week standard instructional term and the payment period qualifies for calculations utilizing Pell Formula 1.
Finding 2022-003: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): Institutions are required to submit for the Federal Direct Loan, Pell Grant, Teacher Education Assistance For College And Higher Education Grant, and Iraq & Afghanistan Service Grant origination and disbursement records to the ED?s Common Origination and Disbursement (COD). Institutions may do this by reporting once every 15 calendar days, biweekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. c. Condition: As part of our testing of the origination records, we noted that within a sample of 25 transactions there were three records that had differences between the COD data and the University?s data for their verification status codes. d. Cause: The unresolved variances in the verification codes were caused by a personnel change that resulted in the control not functioning appropriately during a period within the year ended May 31, 2022. The University has a process to ensure that uploads occurred at least every two weeks to meet the requirements of the COD, however reconciliations were not consistently performed to ensure the data agreed. e. Effect or potential effect: The University?s records did not agree to the records within the COD, which could cause inaccurate data to be used either the ED, the University, lenders or other users of the COD data. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: This finding impacts three records in a sample of 25 records tested. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review its controls, policies and procedures related to the processing of COD data to ensure that each upload is reviewed and compared and that any differences are identified and resolved appropriately and in a timely manner. j. Views of responsible officials: Management concurs with the finding. Once management was made aware of the unresolved variances of verification codes, they were corrected immediately. Upon discovery in August 2022, the Student Financial Aid Office immediately implemented additional controls and training to ensure these issues do not reoccur.
Finding 2022-004: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): If a student enrolls in a payment period that is scheduled to occur in two award years, the entire payment period must be considered to occur within one award year. The institution must determine for each Federal Pell Grant (Pell) recipient the award year in which the payment period will be placed. If an institution places the payment period in the first award year, it must pay a student with funds from the first award year, and if an institution places the payment period in the second award year, it must pay a student with funds from the second award year. An institution may not make a payment that will result in the student receiving more than 1 ? of his or her scheduled Federal Pell Grant for an award year in accordance with the requirements of 34 C.F.R. ? 690.64(a), (b). c. Condition: The University did not have an established policy and procedure to ensure that it consistently applied the regulations regarding payments of Pell if a student?s program crossed over an award year. d. Cause: The University did not have a formal policy or procedure. e. Effect or potential effect: The University could incorrectly apply the payment rules for student receiving Pell funds. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: Historically, the University has handled this process on a student-by-student basis manually without a formal policy. The University was in the process of formalizing this practice and making certain enhancements to its tracking with its accounting system, but it was not completed until after the 2021-2022 federal award year. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University establish a formal policy and procedure and ensure that all personnel responsible for the awarding of Pell are trained on how to appropriately follow the policy. j. Views of responsible officials: Management concurs with the finding. In April 2022, a formal policy and procedures addressing the awarding of Pell Grants has been established to ensure compliance, including staff training.
Finding 2022-005: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): An institution shall, upon receipt of an Enrollment Reporting roster file from the Secretary of the U.S. Department of Education (Secretary), complete and return that report within 30 days of receipt. Unless the institution expects to submit its next enrollment report to the Secretary within the next 60 days, the institution must notify the Secretary or the lender within 30 days if: the institution discovers that a federal loan has been made to or on behalf of a student who enrolled at that school but who has ceased to be enrolled on at least a half-time basis; the institution discovers that a federal loan has been made to or on behalf of a student who has been accepted for enrollment at that school but who failed to enroll on at least a half-time basis for the period for which the loan was intended; or the institution discovers that a student who is enrolled has changed his or her permanent address. See 34 C.F.R. ? 685.309(b). c. Condition: The University was required, as a result of the FPR (OPE ID: 00301200) regarding its participation in the ?Pell for Students Who Are Incarcerated? experiment (Second Chance Pell), to complete a full file review (enrollment status, effective dates, reporting dates) of all National Student Loan Data System (NSLDS) enrollment reporting for the 2019-20 and 2020-21 federal award years, and update and correct errors identified. d. Cause: ED, as a result of the FPR and the findings contained within the FPRD on September 16, 2022, required the University to update its enrollment data to correct certain errors. e. Effect or potential effect: The enrollment data for the University?s students in the NSLDS was deemed to be inaccurate by ED. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: This matter arose as a result of the FPR and findings contained within the FPR and ED?s determination that data needed to be corrected. The University commenced the process to correct the data subsequent to May 31, 2022, however the process of updating the NSLDS enrollment data is still in process as of the date of our report due to the suspension of the NSLDS system and the volume of transactions that must be changed. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University review its policies and procedures to ensure there are timely and complete submissions to the NSLDS, and that training occur for those individuals who are involved in the uploading of enrollment data to the NSLDS. j. Views of responsible officials: Management concurs with the finding. The Registrar?s Office has performed a review of its policies and procedures to continue to ensure timely, accurate and complete submissions to the NSLDS. The determination of the review was that the enrollment status effective date data field required correction in the NSLDS Enrollment History system. Since the restoration of the NSLDS system in November 2022, the Registrar?s Office has been correcting the data.