Finding Text
#2024‐002 – Material Weakness – Eligibility
Coronavirus State and Local Fiscal Recovery Funds, ALN #21.027
Criteria
The grant document No. OB‐2023‐01 states “[scholarship awards can be made] up to $2,000 per academic year for full‐time
students and $1,000 for part‐time or non‐credit bearing classes.”
Condition
During the course of the audit, it was determined that the Organization did not verify the enrollment status of applicants
before awarding scholarships to the applicable university.
Cause
The cause is human error. Enrollment status was verified via a questionnaire sheet sent to the various universities that
applicants attended. Several universities returned the questionnaire sheet, but left questions unanswered, including the
enrollment status of several applicants, and no follow up with the universities was performed until after the scholarship
funds were disbursed.
Effect
The potential effect of not verifying applicant enrollment status is awarding scholarship funds to an ineligible recipient.
Questioned Costs
None
Perspective Information
The finding noted related to test work performed for forty (40) applicants where no verification of enrollment status prior
to award disbursement was noted on four (4) applicants.
Identification as a repeat finding
There was no similar finding in the prior year.
Recommendation
We recommend verifying each applicant’s enrollment status with all universities prior to disbursement of scholarship
funding.
View of Responsible Official
The Foundation receives information directly from PASSHE universities to verify enrollment status of applicants. Universities
submit information to the Foundation on an electronic form, which includes Student Name, Student ID, Scholarship Amount,
Student Enrollment Status, etc. Authorized officials enter their approval by changing “Pending Review” to either “Scholarship
Eligible” or “Not Eligible” on the form and keying in the scholarship amount the student is eligible for based on their verified
enrollment status, for example: $1,000 for a part time student or $2,000 for a full‐time student. For 4 of the 40 applicants
sampled during the audit, a PASSHE university created an inconsistency on the form, having not completed or updated the
enrollment status column to be consistent with the final amount they verified approved for payment. The key control, i.e.
the University’s entry and approval of the eligible amount, prevented any errors from occurring.The Foundation verified the enrollment status for the four applicants identified in the audit, noting that the scholarships
were properly disbursed. Going forward the Foundation has updated its verification process with the universities to ensure
proper classification of the applicant’s enrollment status is verified in accordance with the eligibility requirements of the
grant.