Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid
Pass through Entity: Not applicable
Program Name: Federal Pell Grant Program
AL# and Program Expenditures: 84.063 ($679,498)
Award Number: P063P233976
Federal Award Year: July 1, 2023 to June 30, 2024
Questioned Costs: $2,376.25
Condition Found:
The R2T4 was not calculated correctly for two of the twenty-five students in the compliance testing sample. A separate sample was selected to test additional R2T4 calculations. The R2T4 was not calculated correctly for four of the six students in the R2T4 testing sample. Between the two samples, all of the R2T4s completed during the year were reviewed.
Criteria:
Institutional charges used in the R2T4 calculation are always the institutional charges that were initially assessed to the student for the period of enrollment unless the School made a change to the charges before the student withdrew from the institution.
Scheduled breaks of five or more consecutive days should be subtracted from the number of days in the semester.
Cause:
The Director of Financial Aid misunderstood how to calculate institutional charges. The Director thought a standard amount for tuition and fees were used no matter what a student’s actual charges were.
One institutional schedule break of five consecutive days during the spring semester was not subtracted from the number of days in the semester.
Possible Asserted Effect:
The R2T4 calculations were not completed accurately. Between the six students, $2,384.57 of Federal Pell Grant Funds was awarded to students on February 4, 2025 and $8.32 was returned to the Department of Education on February 4, 2025.
Repeat Finding:
There was not a similar finding in the prior year.
Recommendation:
The R2T4s that were not calculated correctly should be recalculated. A total of $2,384.57 of additional Federal Pell Grant Funds should be awarded to students and $8.32 of Federal Pell Grant Funds should be returned to the Department of Education. Procedures should be improved to ensure that R2T4s are calculated correctly.
Management Response:
All of the R2T4s completed during the year were recalculated in January 2025. On February 4, 2025, $2,384.57 of Federal Pell Grant Funds were awarded to students and $8.32 of Federal Pell Grant Funds were returned to the Department of Education. Procedures will be improved to ensure that R2T4s are calculated correctly.