Finding Text
Criteria: Eligibility: Disbursements are made in accordance with the Payment and Disbursement Schedule, adjusted as necessary for their Lifetime Eligibility Usage (LEU) status.
Condition – The internal controls established around disbursement amounts for students nearing their LEU were not effective.
Cause of Condition – If a student is nearing the LEU, the amount disbursed is reduced in order to not exceed the 600 percent lifetime threshold; however, the College’s process to calculate the amount disbursed was not correct.
Effect of the Condition – The calculation to reduce the amount of Pell disbursed did not factor in for current enrollment level of the student; thus, a student may end up getting more disbursed to them than they are eligible for if the current semester would not put them over the 600 percent threshold.
Questioned Costs – None noted
Context – Out of a population of 497 students who received student financial aid in the form of Pell grants, a sample of 40 students was selected for testing. Out of the 40 students tested, 1 student was close to the Lifetime Eligibility max; however, the amount to be disbursed was miscalculated resulting in the student receiving $611 more Pell than was appropriate.
Repeat Finding - This finding does not repeat a previous finding.
Auditor’s Recommendation – The College should update its procedures and related calculations to factor in the current semester enrollment status when a student is close to the LEU max in order to ensure proper disbursement amounts.
View of Responsible Official – The College is updating its Pell disbursement calculation to consider current semester enrollment in order to disburse an amount that caps out the student’s LEU if the semester would not have put the student over the LEU max.