Finding Text
FINDING 2024-001: PELL GRANT AWARD
Condition
In eight of the thirty-six student files tested for compliance with Federal Pell Grant Program requirements, we
determined the Institution miscalculated the student’s Pell award in one or more payment periods. The
students involved were #’s 29, 33, 38, 41, 42, 46, 54 and 60.
Criteria
For the 2023/2024 award year, Pell Grant awards are based on a student’s Expected Family Contribution (EFC),
the academic year structure of the student’s educational program, and the cost of attendance (COA) for a full-time
student for a full academic year. The Scheduled Award amounts are specified on the Pell Grant payment
schedules released by the U.S. Department of Education each year. For term-based programs, awards are also
based on a student’s enrollment status. If the student does not begin attendance in all classes for a payment
period, resulting in a change in the student’s enrollment status, a school must recalculate the student’s award for
that payment period based on the lower enrollment status.
Cause
The students were enrolled in term-based programs offered in modules. They did not attend the same number of
credits that they were originally scheduled to attend (and on which their Pell payments were based). The
Institution neglected to recalculate the Pell awards and make adjustments to the student accounts.
Effect and Questioned Costs
As outlined below, the students were not paid the proper amount of Pell. Subsequent to our testing, the
Institution returned all over awards to the Pell Grant program and offset the refunds with Institutional credits.
It also provided Institutional credits (in lieu of Pell funds) to the students who were under-awarded. We
verified that any resulting credit balances were sent to the students.
Over
(Under)
Student #
Disbursed
Eligible
Award
Award Year
29 $
2,773 $
3,698 $
(925) 2023/2024
33 $
392 $
523 $
(131) 2023/2024
38 $
2,773 $
925 $
1,848 2023/2024
41 $
2,773 $
1,849 $
924 2023/2024
42 $
2,454 $
818 $
1,636 2022/2023
46 $
805 $
536 $
269 2023/2024
54 $
1,849 $
925 $
924 2023/2024
60 $
505 $ 0 $
505 2023/2024
Total Questioned Costs: $7,162
The Institution made seventy-three separate disbursements of Pell to the students in our sample during the
fiscal year, for a total of $156,034. The errors noted above represent 11% of the disbursements that were
processed, but less than 5% of the dollars that were awarded during the fiscal year.
FINDING 2024-001: PELL GRANT AWARD (CONTINUED)
Recommendation
The Institution should implement procedures to ensure that, in the future, Pell Grant awards are awarded in
accordance with the federal regulations.
Views of Responsible Officials
The Institution concurs with this finding.