Finding 1099256 (2024-001)

Criteria According to 34 CFR Section 690.62(a): 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. According to 34 CFR Section 690.2(c): Annual award: The Federal Pell Grant award amount a full-time student would receive under the payment schedule for a full academic year in an award year, and the amount a three-quarter time, half-time, and less-than-half-time student would receive under the appropriate disbursement schedule for being enrolled in that enrollment status for a full academic year in an award year. Disbursement Schedule: A table showing the annual awards that three-quarter, half-time, and less-than-half-time students at term-based institutions using credit hours would receive for an academic year. This table is published annually by the Secretary and is based on: (1) A student's expected family contribution, as determined in accordance with Title IV, Part F of the HEA; and (2) A student's attendance costs as defined in Title IV, Part F of the HEA. (3) The amount of funds available for making Federal Pell Grants. Condition Federal regulations require institutions to award Federal Pell Grants in accordance with the appropriate disbursement schedule for three-quarter, half-time, and less-than-half-time students based on the students’ EFC and cost of attendance. During our testing of forty students, one student was not awarded the proper amount of Pell Grant funds. Cause The College had to calculate the student’s financial aid manually based on the type of certification program the student was enrolled in. The student’s Federal Pell Grant was correctly calculated based on the student’s enrollment status, expected family contribution, and attendance costs; however, the total amount of funds disbursed was more than what was originally calculated. Inaccurate disbursing of the award was caused by human error while inputting the calculated Pell award which was not identified prior to disbursing the funds to the student. Effect By inputting the incorrect award, the student was over awarded Federal Pell Grant Costs Questioned Costs Federal Pell Grant overpayment of $128. Perspective Our sample was not, and was not intended to be, statistically valid. Of the forty students selected for testing, one student, or 2.5% of our sample, received an incorrect Federal Pell Grant award. Identification as a Repeat Finding, if applicable Not applicable Recommendation We recommend that management of the College review, and if necessary, update, the policies and procedures for awarding aid and ensuring enrollment statuses are correct to ensure Federal Pell Grant award amounts are properly calculated. Additionally, financial aid awards should be reviewed by management prior to disbursing funds to students. View of Responsible Officials The College agrees with the finding.