Finding Text
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grants ALN 84.063 Federal Award Identification Number and Year - Various Pass- through Entity - N/A Finding Type - Material weakness and material noncompliance with laws and regulations Repeat Finding - No Criteria - Per the Student Financial Aid Handbook Volume 3, Chapter 2, school districts must establish and maintain accurate cost of attendance (COA) components, including both direct and indirect costs, to determine student eligibility and award amounts for Title IV aid. The COA must reflect reasonable estimates of expenses students are likely to incur. Per the Student Financial Aid Handbook, Volume 3, Chapter 3, financial aid awarded to students, including federal and non federal aid, is limited to the student's calculated cost of attendance. Condition - The School District did not utilize the cost of attendance when determining the maximum amount of aid a student is eligible to receive. The School District also does not maintain updated cost of attendance calculations for its programs. Questioned Costs - Unknown If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - The School District does not maintain accurate cost of attendance calculations needed in order to determine the amount of the financial aid to be awarded to students. Identification of How Questioned Costs Were Computed - N/A Context - The cost of attendance was not updated since 2014 for some programs, therefore creating the inability to recalculate the award determination for student's financial aid. Cause and Effect - The School District lacked a formal process for annually reviewing and updating indirect cost estimates within the Campus Ivy portal and did not utilize the COA in determining the maximum award students maybe eligible for. Not utilizing the COA in award determinations may have led to improper distributions of PELL grants. Recommendation - We recommend the School District implement a documented process for annually reviewing and updating all components of the cost of attendance, including indirect costs. This process should include market research, student surveys, and coordination with institutional departments to ensure estimates are reasonable and support accurate aid packaging. We also recommend the School District adopt policies and procedures to account for the COA when calculating PELL grant awards. Views of Responsible Officials and Planned Corrective Actions - The School District agrees with the finding. The School District is developing a documented annual process to review and update all components of the cost of attendance, including indirect costs, using market research, student input, and coordination with relevant departments. The District is also revising its policies and procedures to ensure the cost of attendance is properly applied when calculating Pell Grant awards. These updates will support more accurate aid packaging and ongoing compliance with federal requirements.