Finding Text
Assistance Listing, Federal Agency, and Program Name - Student Financial Assistance Cluster - Federal Pell Grant Program ALN 84.063 Federal Award Identification Number and Year - Various Pass through Entity - N/A Finding Type - Material weakness Repeat Finding - No Criteria - Per 34 CFR 600.20, institutions participating in Title IV programs must ensure continued compliance with institutional eligibility requirements and maintain adequate documentation to support such compliance. Regular reviews are necessary to confirm ongoing eligibility and to identify any changes that may affect participation. Condition - The School District is eligible to participate in Title IV federal student aid programs; however, it does not conduct an annual review of its institutional eligibility requirements nor maintain documentation supporting such assessments. Questioned Costs - None If questioned costs are not determinable, description of why known questioned costs were undetermined or otherwise could not be reported - No questioned costs Identification of How Questioned Costs Were Computed - N/A Context - During the audit period, the School District met Title IV eligibility requirements but the School District lacked internal controls to verify institutional eligibility prior to disbursing Title IV funds. There was no documented process for reviewing updates or confirming the eligibility requirements were met. Cause and Effect - The School District has not established formal procedures to perform and document annual reviews of its institutional eligibility status. Failure to conduct and document annual eligibility reviews may result in noncompliance with federal regulations, potentially jeopardizing the institution’s continued participation in Title IV programs. Recommendation - We recommend the School District implement a formal process to conduct annual reviews of its institutional eligibility requirements and maintain appropriate documentation of these assessments. This process should include a checklist of eligibility criteria, responsible personnel, and a timeline for completion. Views of Responsible Officials and Planned Corrective Actions - The School District agrees with the finding. The School District is implementing a regular process to review institutional eligibility annually and document the results. This will include using a checklist of requirements, identifying who is responsible for each step, and setting a clear timeline to ensure the review is completed consistently.