Finding 1140234 (2024-002)

2024-002— Federal Pell Grant Program Eligibility U.S. Department of Education Student Financial Assistance Programs Cluster Federal Pell Grant Program (84.063) Federal Award Year: 2023-2024 Repeat Finding: No Criteria The Code of Federal Regulations (34 CFR 690) requires that the University provides Federal Pell Grant Program funds to eligible students enrolled in eligible undergraduate programs and certain eligible post-baccalaureate teacher certificate programs The Code of Federal Regulations (2 CFR 200.303) requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure accurate awarding of Federal Pell Grant Program funds. Condition The University did not properly award Federal Pell Grant Program funds to one student. Out of the 40 students tested, we noted one student (2.5%) who was eligible to receive the funds during the award period and was not awarded the funds. The University’s internal control activities did not properly identify and correct this compliance finding above. Cause During the re-packaging process performed by the University when the student returned to active status, an employee of the University incorrectly did not award the funds for the spring 2024 term. Effect Noncompliance with federal regulations could result in heightened monitoring by the U.S. Department of Education. Context We tested 40 students who received Federal Pell Grant Program funds. For each student tested, management provided documentation showing the student’s Cost of Attendance (COA), EFC, and awards granted to each student. Out of the 40 students tested, we noted one student (2.5%) who was eligible to receive the Federal Pell Grant Program funds during the award period and was not awarded the correct amount of these funds. Questioned costs There were no questioned costs with respect to this finding. Recommendation We recommend that the College review current processes and controls in place in order to ensure that future student financial assistance is properly awarded. Views of responsible officials Management agrees with this finding. See corrective action plan.