Finding 1165389 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2025-12-18

AI Summary

  • Core Issue: The University miscalculated Pell Grants for Summer 2025, treating 6 credit hours as full-time, leading to over-awards.
  • Impacted Requirements: This violates the new enrollment intensity calculation rules set by 34 CFR 690.63(b).
  • Recommended Follow-Up: Review and update summer term policies to ensure compliance with Department of Education guidelines.

Finding Text

Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: Federal Pell Grants 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The University did not properly award Pell for the Summer term under the new enrollment intensity calculation requirements. Criteria: 34 CFR 690.63(b) Questioned Costs: $10,014 Context: For 5 students out of 33 tested, the University incorrectly used 6 credit hours as full time for the enrollment intensity calculation for Summer 2025 resulting in the over-award of $10,014 in Pell grants for the summer 2025 term. These amounts were returned to the Department of Education during the audit. Cause: Due to a change in Pell grant calculations for award year 2024-2025, the University misinterpreted Summer Pell regulations. Effect: Students were over-awarded Pell grant for their enrollment level. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the University review policies for summer term enrollment to ensure they align with Department of Education enrollment intensity guidance and apply the new enrollment intensity regulations accordingly. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Pell Calculations Condition: The University did not properly award Pell for the Summer term under the new enrollment intensity calculation requirements. Planned Corrective Action: This is an isolated error on the part of the Financial Aid Office staff. In review of the new Pell grant calculations staff members misinterpreted summer Pell regulations. During implementation of the new system software, Pell calculations were believed to be automatic. In subsequent years staff members will review policies for summer programs, participate in training sessions, seminars and workshops, to ensure they understand the rules, regulations and guidelines as they apply to enrollment intensity regulations, in order to manually adjust Pell amounts for part-time students. Person Responsible for Corrective Action Plan: Amanda McLaughlin, Assistant Vice President of Financial Aid; Miranda Lumley Associate Director of Financial Aid Anticipated Date of Completion: Fall of 2025 prior to end of the term and awarding aid for upcoming semesters in the 2025-26 award year.

Categories

Student Financial Aid Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $7.19M
84.063 FEDERAL PELL GRANT PROGRAM $2.56M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $620,369
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $109,069
84.033 FEDERAL WORK-STUDY PROGRAM $65,666
10.175 FARMERS MARKET AND LOCAL FOOD PROMOTION PROGRAM $20,280