Finding 1080922 (2024-001)

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Requirement
E
Questioned Costs
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Year
2024
Accepted
2024-11-01
Audit: 327017
Organization: Capital University (OH)

AI Summary

  • Core Issue: The College's Pell Grant awarding system failed to comply with Title IV regulations, resulting in underpayments to students.
  • Impacted Requirements: Pell Grant amounts must be accurately calculated based on the Department of Education's Payment and Disbursement Schedules.
  • Recommended Follow-Up: Update the Ellucian Colleague program to correctly identify credit hours and implement a review process by the Student Financial Aid Department.

Finding Text

Program: Federal Pell Grant Program CFDA 84.063 Criteria: Per 34 Code of Federal Regulations (CFR) 690.62 Calculation of a Federal Pell Grant, the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. The Uniform Guidance Compliance Supplement states that the Department of Education provides institutions Payment and Disbursement Schedules for determining Pell awards each year. The Payment or Disbursement Schedule provides the maximum annual amount a student would receive for a full academic year for a given enrollment status, Expected Family Contribution (EFC), and Cost of Attendance (COA). The Payment Schedule is used to determine the annual award for full-time, three-quarter time, half-time, and less-than-half-time students. Condition: The College’s system of awarding and disbursement of Pell Grants to students was not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, 1 student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,698 for Fall and Spring, respectively; however, only received $2,773 for the Fall semester, causing a total underpayment of $925. Effect: Capital University did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment identified is due to an error in the Ellucian Colleague program. The program identified courses with similar names taken by the same student to not have credit hours. This caused the student's status to not correctly update in the system. Recommendation: An update to the Ellucian Colleague program should be made, that correctly identifies course names and numbers as credit hours taken during the semester. In addition, a level of review by the Student Financial Aid Department should be added to ensure the Pell amount awarded is in line with Title IV regulations. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Capital University reviewed all Pell awards for 2023 – 2024 and discovered a total of 3 occurrences of a Pell Grant being under awarded totaling $4,159. Students impacted have been credited for any error in their initial 41. award. The University is reconfiguring the Ellucian Colleague program to ensure that this error does not occur in the future.

Categories

Student Financial Aid

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $24.32M
84.063 Federal Pell Grant Program $3.48M
93.264 Nurse Faculty Loan Program (nflp) $834,600
93.364 Nursing Student Loans $706,710
84.038 Federal Perkins Loan Program $631,843
84.033 Federal Work-Study Program $295,685
84.007 Federal Supplemental Educational Opportunity Grants $277,922
16.575 Crime Victim Assistance $117,853
84.425 Education Stabilization Fund $117,546
84.027 Special Education Grants to States $99,298
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $60,000
47.070 Computer and Information Science and Engineering $17,781
12.630 Basic, Applied, and Advanced Research in Science and Engineering $15,269
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $13,500
64.028 Post-9/11 Veterans Educational Assistance $13,446