Finding Text
Criteria
According to 34 CFR 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 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’ estimated financial contribution and cost of attendance. During our testing, we noted 1 student, out of a sample of 40, that were not awarded the proper amount of Pell Grant funds. Cause
The College did not use the student’s correct Pell disbursement schedule when awarding the student Pell Grant funds. The student was awarded Pell Grant funds based on a cost of attendance of $3,400, however, the student’s cost of attendance was $10,420.
Effect
By using the incorrect enrollment status, the student was under awarded Federal Pell Grant funds.
Questioned Costs
Federal Pell Grant underpayment of $492.50.
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 40 students selected for testing, 1 student, or 2.5% of our sample, received 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 cost of attendances 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.