Finding Text
2025-006 Direct Programs – Department of Education ALN # 84.268, 84.063, 84.007, 84.033 Student Financial Assistance Cluster – Special Tests and Provision – Disbursement to or on Behalf of Students Material Weakness in Internal Controls Over Compliance Criteria: The Federal Pell Grant program provides grants to eligible students enrolled in eligible undergraduate programs and certain eligible post-baccalaureate teacher certificate programs and is intended to provide a foundation of financial aid. The program is administered by the Department of Education (DOE) and postsecondary educational institutions. Maximum and minimum Pell Grant awards are established by statute, but the amount for which each student is eligible is based on Maximum or Minimum Pell Grant eligibility criteria or the student’s SAI. DOE provides funds to the institution based on actual and estimated Pell expenditures. Condition: During our review of the calculation of student disbursements, we noted 2 students who were not awarded the full amount of Pell for which they qualified. Both students were registered in the summer session but were excluded from the financial aid disbursements for the summer session. Cause: The College’s existing control procedures to ensure that students receive the full amount of Pell for which they qualify were not functioning properly. Effect: The College excluded these students from the financial aid disbursements for the summer session. As a result, 2 students did not receive Pell for the summer session. Questioned Costs: None Sampling: A nonstatistical sample of 60 disbursements out of 6,700 disbursements were selected for testing. Repeat Finding from Prior Years: No Recommendation: The College should implement a control process to ensure all sessions are properly identified and taken into consideration when creating a student’s financial aid package. The College should consider making these students whole and verifying that other summer session students were not precluded from receiving Pell awards. Views of Responsible Officials: The Director of Financial Aid agrees with the finding.