Finding 1163400 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-03
Audit: 372937
Organization: Austin College (CO)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The College improperly awarded Pell Grants to students enrolled in Summer courses, affecting 3 out of 40 students tested.
  • Impacted Requirements: Compliance with 34 CFR 690.63(b) regarding Pell Grant calculations for Summer enrollment.
  • Recommended Follow-Up: Update processes to align with new Pell regulations for Summer courses to prevent future errors.

Finding Text

Pell Awards Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Pell Grants Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not properly award Pell for students enrolled in Summer courses. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: 3 out 40 students tested were not properly awarded Summer Pell awards. The College completed a full file review of Pell eligible students who were enrolled in Summer 2025 courses. During this review, it was discovered that 30 students should have been awarded Pell totaling just under $50,000. These were corrected during the audit. Cause: New Pell calculation regulations for students enrolled in Summer courses were not correctly implemented for the 2024-2025 award year. This was an oversight by management. Effect: Pell was not awarded correctly to students enrolled in Summer courses. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College update processes to reflect the changes in Pell regulations for students enrolled in Summer courses. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Attached to this document is a new Summer Pell Policy and Procedures that we developed after the Pell finding was brought to our attention this past summer. A mentor from another private institution that uses Colleague (the same system we use) was recommended to our team to help guide us when awarding summer Pell using the Pell Grant Enrollment Intensity formula. We implemented training on the Enrollment Intensity formula and had various calculation scenarios tested by our new mentor. We then awarded all summer term students who were entitled to the Pell Grant award and disbursed aid to those students by the required deadline. For the future, we will follow the newly developed Summer Pell Policy and Procedures. We will engage with the Registrar's Office to determine and verify when students register, drop and/or change courses for the summer term. In addition, running weekly Informer reports will be another safety net for our office when determining Pell eligibility for summer students. The Financial Aid staff will also immerse themselves in various forms of training available to us on all aspects of processing and awarding aid. We will do this via webinars, TASFAA and NASFAA training opportunities, internal cross-training and various FSA training programs. This year, two members of our team are new to financial aid and the remaining two, including myself, are new to our positions and responsibilities. We feel taking advantage of the plethora of training resources available in our industry will be vital to our growth and success while navigating higher education's rapidly changing regulations. Person ResponsibLe for Corrective Action PLan: Hayley Jordan - Director of Financial Aid Anticipated Date of Completion: Implemented.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $8.52M
84.063 FEDERAL PELL GRANT PROGRAM $2.75M
84.038 FEDERAL PERKINS LOAN PROGRAM $821,633
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $249,527
84.033 FEDERAL WORK-STUDY PROGRAM $206,086
10.978 FARM LABOR STABILIZATION AND PROTECTION PILOT GRANT PROGRAM $43,230
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $22,632
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $10,661
47.079 OFFICE OF INTERNATIONAL SCIENCE AND ENGINEERING $2,050