Finding Text
Program: Federal Pell Grant Program (CFDA #84.063) Criteria: Per 34 CFR 690.83(b)(2), institutions are required to submit Pell Grant disbursement records to the U.S. Department of Education’s Common Origination and Disbursement (COD) System no later than 15 calendar days after making a disbursement to a student. Timely reporting ensures accurate tracking of awards and compliance with federal regulations. Condition: During our testing of Federal Pell Grant disbursements, we identified delays in reporting disbursement information to COD. Out of a sample of 40 Pell Grant disbursements reviewed, 3 (approximately 14%) were submitted between 17 and 29 calendar days after the disbursement date, exceeding the required 15-day window. Cause: There was a technical glitch when the college used a batch process through Banner. The processed picked up every other student but did not include these three when it created the output file for an unknow reason. The college submitted each record individually as soon as they were made aware that the disbursement information was never sent to COD through their own internal review. Effect: Late reporting of Pell Grant disbursements may result in discrepancies between the institution’s records and the COD system, potentially affecting institutional eligibility, reconciliation accuracy, and future funding. Questioned Costs: None. Although reporting was delayed, all disbursements were ultimately submitted and accepted by COD. Perspective: This is a systemic issue, in that controls over the requirement have not been developed to ensure no issues arise. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the College enhance internal controls to ensure Pell Grant disbursements are reported to COD within the required 15-day timeframe. This may include establishing automated alerts for pending disbursements, performing regular reconciliation with COD, and providing additional staff training on federal reporting deadlines.