Finding 1172097 (2025-002)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-02-03
Audit: 385231
Organization: Mt. Hood Community College (OR)
Auditor: EIDE BAILLY LLP

AI Summary

  • Core Issue: A student received an incorrect Pell Grant amount due to a missing Pell indicator.
  • Impacted Requirements: Compliance with federal disbursement regulations for student financial assistance.
  • Recommended Follow-up: Implement a control process to ensure Pell indicators are correctly flagged for all financial aid applicants.

Finding Text

2025-002 Direct Program - Department of Education Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Award Numbers: Not Available Compliance Requirement: Special Tests & Provisions – Disbursement to or on Behalf of Students Type of Finding: Significant Deficiency in Internal control 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 (ED) 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. ED provides funds to the institution based on actual and estimated Pell expenditures. Condition: In our testing of 60 students, we found 1 student who was not awarded the correct amount of Pell. Cause: A student’s account was not flagged with the proper Pell indicator causing the amount of Pell calculated to be lower than it should have been by $319. Effect: A student was awarded the incorrect amount of Pell. Questioned Costs: None reported Context/Sampling: Nonstatistical sample of 60 students receiving financial aid out of 2,986 total students receiving financial aid. Repeat Finding from Prior Year: No Recommendation: The District should have a control or process in place to ensure Pell indicators are properly flagged for each student requesting financial aid, and that students receive the full award for which they qualify. Views of Responsible Officials: The District’s management agrees with the finding.

Corrective Action Plan

Finding 2025-002 Federal Agency Name: U.S. Department of Education Program Name: Student Financial Assistance Cluster Federal Financial Assistance Listing: 84.007, 84.033, 84.063, 84.268 Finding Summary: In testing of 60 students, 1 student was identified who was not awarded the correct amount of Pell. Corrective Action Plan: The corrective action for the Pell Grant eligibility issue involved promptly adjusting the affected student's Pell Grant to the correct amount, which resulted in an increase and ensured there was no negative impact. To address the root cause, the Director of Financial Aid met with the financial aid team to review the finding and clarified federal regulations on Pell Grant calculations, referencing the 2024-25 FSA Handbook. Importantly, the Director committed to upgrading the internal Pell Grant calculator used by Financial Aid Advisers: this enhancement will add a flagging mechanism that automatically alerts advisers whenever a student's calculated Pell Grant amount falls below the published minimum Pell amount for that award year, thereby ensuring that no student unintentionally receives an ineligible or reduced Pell Grant due to a calculation oversight. Responsible Individual(s): Christopher Natelborg Anticipated Completion Date: January 2026

Categories

Special Tests & Provisions Student Financial Aid Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1172090 2025-001
    Material Weakness Repeat
  • 1172091 2025-001
    Material Weakness Repeat
  • 1172092 2025-001
    Material Weakness Repeat
  • 1172093 2025-001
    Material Weakness Repeat
  • 1172094 2025-002
    Material Weakness Repeat
  • 1172095 2025-002
    Material Weakness Repeat
  • 1172096 2025-002
    Material Weakness Repeat
  • 1172098 2025-003
    Material Weakness Repeat
  • 1172099 2025-003
    Material Weakness Repeat
  • 1172100 2025-003
    Material Weakness Repeat
  • 1172101 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $10.88M
93.600 HEAD START $9.55M
84.268 FEDERAL DIRECT STUDENT LOANS $7.64M
17.261 WORKFORCE DATA QUALITY INITIATIVE (WDQI) $977,680
93.596 CHILD CARE MANDATORY AND MATCHING FUNDS OF THE CHILD CARE AND DEVELOPMENT FUND $939,034
84.002 ADULT EDUCATION - BASIC GRANTS TO STATES $744,413
17.285 REGISTERED APPRENTICESHIP $677,220
93.575 CHILD CARE AND DEVELOPMENT BLOCK GRANT $618,068
10.558 CHILD AND ADULT CARE FOOD PROGRAM $505,939
84.033 FEDERAL WORK-STUDY PROGRAM $445,431
84.042 TRIO STUDENT SUPPORT SERVICES $357,287
84.044 TRIO TALENT SEARCH $244,595
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $240,887
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $198,469
17.277 WIOA NATIONAL DISLOCATED WORKER GRANTS / WIA NATIONAL EMERGENCY GRANTS $138,385
17.278 WIOA DISLOCATED WORKER FORMULA GRANTS $137,994
84.425 EDUCATION STABILIZATION FUND $84,391
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $68,805
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $41,249
17.258 WIOA ADULT PROGRAM $38,367
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $22,289
10.561 STATE ADMINISTRATIVE MATCHING GRANTS FOR THE SUPPLEMENTAL NUTRITION ASSISTANCE PROGRAM $10,455
93.924 RYAN WHITE HIV/AIDS DENTAL REIMBURSEMENT AND COMMUNITY BASED DENTAL PARTNERSHIP GRANTS $7,314
39.003 DONATION OF FEDERAL SURPLUS PERSONAL PROPERTY $19