Finding 1170483 (2025-001)

Material Weakness Repeat Finding
Requirement
B
Questioned Costs
-
Year
2025
Accepted
2026-01-23

AI Summary

  • Core Issue: A student was misawarded $373 in Pell Grant funds due to a calculation error in their eligibility.
  • Impacted Requirements: The error occurred after the 180-day limit for disbursement adjustments, violating federal guidelines.
  • Recommended Follow-Up: Implement stronger internal controls and provide staff training on Pell Grant eligibility to prevent future errors.

Finding Text

FINDING #2025-01 – STUDENT FINANCIAL AID ELIGIBILITY (8000) Criteria According to the Office of the U.S. Department of Education, The Pell Grant is the largest federal grant program offered to undergraduates and is designed to assist students from low-income households. A Federal Pell Grant, unlike a loan, does not have to be repaid, except under certain circumstances. Condition During our federal testing, we identified one selection as having the incorrect disbursed amount. This student (selection #5) was identified as having a Pell calculation error. This student should have received $925 in Pell for term 202570. Effect Due to the miscalculation, the student was misawarded by $373 in Pell Grant funds for the 202570 term. Cause The error occurred due to a miscalculation during the review of the students’ Pell eligibility. This error was identified after the 180-day mark. Per the 24/25 FSA Handbook, 34 CFR 668.164(j)(4), the district cannot make a disbursement more than 180 days after the student became ineligible. Questioned Cost None noted Repeat Finding This is not a repeat finding. Recommendation We recommend the district implement enhanced internal control, such as secondary reviews or automated recalculation checks to ensure that changes in enrollment status are accurately reflected in Pell award calculations. Additionally, for the district to provide staff training on Pell Grant eligibility and recalculation requirements to reduce any future errors. Corrective Action Plan/District Response.

Corrective Action Plan

The financial aid office is under new leadership as of January 1, 2025. During 2025, department leadership began its review of departmental policies and procedures, focusing on remediating compliance weaknesses within the department while moving toward best practice in federal and state aid delivery. Department leadership has put structures in place at multiple points of potential failure to prevent inaccurate aid calculations. These structures include new policy and procedure documentation, enhanced optimization in the Banner system, staff training in multiple modalities including intradepartmental training, asynchronous independent training, off-site training, and a monthly reconciliation program with AVC’s fiscal office. We have also begun a system of cross training to ensure that expertise persists within the department during times of staffing changes, extended leaves of absence, and vacancies.

Categories

Eligibility Student Financial Aid Matching / Level of Effort / Earmarking

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program (PELL) $36.44M
84.268 Federal Direct Student Loans $5.29M
84.031 Higher Education Institutional Aid, Title V, Data Science $834,049
84.048 Career and Technical Education - Basic Grants $770,262
84.033 Federal Work Study Program (FWS) $640,080
84.007 Federal Supplemental Education Opportunity Grants (FSEOG) $571,060
84.031 Teacher Preparation Program $489,085
84.042 TRIO - Student Support Services $332,235
84.031 Higher Education Institutional Aid, Title V, 2nd Year Experience $179,469
93.558 Temporary Assistance for Needy Families $131,190
93.658 Foster Parent Training Program, Title IV-E $46,570
47.074 Bridge Ecology and Evolution $26,635
10.055 Pathways of Possibilities for Transforming Higher Education Curriculum Alignment Program (POP THE CAP) $13,490
84.425 American Rescue Plan Act $2,867