Finding Text
Finding 2024-001:
Assistance Listing #84.063 Federal Pell Grant Program.
Criteria:
The College is required to calculate the Federal Pell Grant award for a payment period by dividing the award amount by two semesters or three trimesters (34 CFR § 690.63 (b)).
Condition:
4 students in our sample of 40 students were eligible for the annual Pell award, initially established to be paid over 3 trimesters based on expected enrollment. The students only attended the first 2 of the 3 trimesters and the award was not recalculated across the adjusted payment period.
Cause:
Due to the nature of the program enrolled, the students were expected to be on a trimester payment period. If the student did not complete the full trimester, the Pell Grant award was not recalculated to disburse the total eligible award amount.
Effect:
The College’s process to calculate a Pell Grant award was automated within the system and was not functioning properly for students enrolled in trimesters. The amount the College did not disburse to eligible students totaled $7,319.
Questioned Costs:
None
Auditors’ Recommendation:
The College should review its procedures for calculating the Pell Grant award to ensure compliance with requirements.
Views of Responsible Officials:
The College, upon identification of this issue, recalculated the Pell Grant awards and disbursed the eligible amounts to the 4 students. The College also conducted an internal review of students whose payment period was 3 trimesters based on expected enrollment and identified two additional students who only attended the first 2 of the three trimesters; the College recalculated and disbursed the eligible amounts to these two students. Additionally, the College immediately reviewed its procedures and made necessary changes.