Finding Text
Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement scheduled published by the Secretary for each award year. The payment schedules take into account the cost of attendance, the student’s SAI, and the enrollment status of the student. Condition: During our testing, we noted 1 of the 40 students selected for eligibility testing were under-awarded Pell for the fiscal year due to a manual packaging error during the year. Questioned Costs: None Context: Pell Grant awards are determined based on federal eligibility criteria and must be accurately packaged to ensure students receive the correct amount of aid. Manual errors in the packaging process can lead to under-awards or over-awards, resulting in noncompliance with U.S. Department of Education regulations and potential financial impact for students and the institution. Cause: The Pell grant was manually repackaged during the year when a student withdrew from a class causing an error in the amount awarded. Effect or Potential Effect of Finding: Students were under-awarded Pell funds. Repeat Finding: Yes – see finding 2024-005. Recommendation: We recommend the College implement a review process that compares enrolled credits to Pell awards to ensure all students receive the correct Pell Grant amounts. Views of Responsible Officials: There is no disagreement with the audit finding.