Finding 1165237 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-17
Audit: 375631
Organization: Remington College (TX)
Auditor: SYMPHONA LLP

AI Summary

  • Core Issue: Two students were over-awarded Federal Pell Grant funds due to incorrect eligibility assessments.
  • Impacted Requirements: Compliance with 34 CFR 690.63 regarding proper calculation and disbursement of Federal Pell Grant awards.
  • Recommended Follow-Up: Update procedures to ensure accurate award calculations based on student eligibility.

Finding Text

Identification of the Federal Program: United States Department of Education Federal Pell Grant Program (84.063) Criteria: 34 CFR 690.63 Condition: Over Award of Federal Pell Grant Program Funds Cause: No cause could be determined. Effect: The students in question were not awarded properly based upon the students’ eligibility. Questioned Costs: Total Questioned Costs: $769 $350 in 2023-2024 Federal Pell Grant program funds. $419 in 2024-2025 Federal Pell Grant program funds. Description of the Nature and Extent of the Issues Reported: Our review of fifty (50) student files disclosed that two (2) students were incorrectly awarded Federal Pell Grant program funds based on eligibility. Twenty five (25) of the student files were reviewed for Eligibility (EL), and twenty five (25) were reviewed for Verification (VR). For student #20 (VR), the Institution awarded $2,465 in 2023-2024 Federal Pell Grant program funds. The student was eligible for $2,115, resulting in an over award of $350 in 2023-2024 Federal Pell Grant program funds. For student #2 (EL), the Institution awarded $2,465 in 2024-2025 Federal Pell Grant program funds. The student was eligible for $2,046, resulting in an over award of $419 in 2024-2025 Federal Pell Grant program funds. Subsequent to the audit, the Institution refunded $350 in 2023-2024 Federal Pell Grant program funds on behalf of student #20 (VR). In addition the Institution refunded $419 in 2024-2025 Federal Pell Grant program funds on behalf of student #2 (EL). The instances of noncompliance represent an error rate in the number of sampled items tested equal to 4% (2 of 50) from a population of 4,182 and in the dollar amount of the sampled items tested equal to 0.18% ($769 of $432,530) from a population of $36,539,535. This is a statistically valid sample. Repeat Finding: This is not a repeat finding. Recommendations: We recommend that the institution review and update procedures to ensure that Federal Pell Grant awards are calculated and disbursed in accordance with 34 C.F.R. § 690.63 based on each student’s eligibility. Views of Responsible Officials: The Institution agrees with the finding and recommendation.

Corrective Action Plan

The Institution has reviewed the details of the finding and determined the error to be due to human error and the responsibility of the Institution. Subsequent to the audit, the Institution refunded $350 in 2023-2024 Federal Pell Grant program funds on behalf of student #20 (VR). In addition the Institution refunded $419 in 2024-2025 Federal Pell Grant program funds on behalf of student #2 (EL). These two students over-award was due to a schedule or grade change that took place after the start of student’s term or payment period. The Institution will implement reporting from our SIS to monitor schedule or grade changes that take place after the start of a student’s term or payment period.

Categories

Student Financial Aid Eligibility

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $20.31M
84.063 FEDERAL PELL GRANT PROGRAM $16.48M
84.425 EDUCATION STABILIZATION FUND $3.96M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $62,000
84.033 FEDERAL WORK-STUDY PROGRAM $25,197