Finding 1175173 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-02-24
Audit: 388782
Organization: The College of New Jersey (NJ)

AI Summary

  • Core Issue: One student was under-awarded PELL grants due to a failure to accurately capture changes in enrollment intensity during aid calculations.
  • Impacted Requirements: Compliance with federal regulations requiring that aid does not exceed financial need, as defined by the new SAI calculation.
  • Recommended Follow-Up: The College should enhance its review process for enrollment changes to prevent future calculation errors in aid disbursement.

Finding Text

Finding 2025-002: Eligibility Student Financial Assistance Cluster U.S. Department of Education Award Period: July 1, 2024 – June 30, 2025 Criteria: 34 CFR 668.42, 34 CFR 673.5, 34 CFR 673.6, and 34 CFR 685.301 require institutions to ensure that aid awarded to students does not exceed the student’s financial need or cost of attendance (COA). The determination of need-based award amounts is based on financial need. Financial need is defined as the student’s COA minus the student’s student aid index (“SAI”). In accordance with the FAFSA Simplification Act, which included a set of changes to the Free Application for Federal Student Aid (“FAFSA”) aimed at making the process easier and more accessible by reducing the number of questions and simplifying the financial aid calculation formula, the new SAI amount replaced the Expected Family Contribution (“EFC”). SAI is computed by the FAFSA processing system (“FPS”) and is included on the student’s FAFSA submission. To avoid any overpayments, need-based awards cannot exceed the student’s overall financial need. Condition: For 1 out of 40 students selected for eligibility compliance and control testing, we identified that the student received the incorrect amount of PELL grant awards based on the initial calculation by the College of the student’s SAI. This was the result of a change in the student’s enrollment intensity which was not properly captured in the calculation of PELL aid. Cause: The College’s manual review of the PELL award calculation under the reprocessed FAFSA for this student was not precise enough to properly identify changes in the student’s enrollment intensity during the period as part of the calculation of the PELL award. Effect: For 1 out of 40 students selected for eligibility compliance and control testing, we identified that the student received the incorrect amount of PELL grant awards based on the initial calculation by the College of the student’s SAI. This was the result of a change in the student’s enrollment intensity which was not properly captured in the calculation of PELL aid. Questioned Costs: N/A Context: For 1 out of 40 students selected for eligibility compliance and control testing, we identified that the student received the incorrect amount of PELL grant awards based on the calculation by the College of the student’s SAI and enrollment intensity. The student was under-awarded PELL based on a change in enrollment intensity during the semester which was not accurately captured in the College’s reprocessing of the student ISIR form as part of the College’s implementation of the FAFSA Simplification Act. Repeat Finding: No. Recommendation: It is recommended that the College conduct a precise review of student enrollment intensity changes throughout the award disbursement process to ensure that they do not result in errors in the calculations and disbursement of aid. Views of Responsible Officials: In response, the College implemented further reporting enhancements to ensure that all awards are accurate. This includes generating the following reports for further review and analysis: all student actions following the Add/Drop period until mid-semester, Pell-only students who are less than full-time at the end of the Add/Drop period, and weekly student enrollment intensity changes. Refer to the Corrective Action Plan for Current Year Findings.

Corrective Action Plan

Finding 2025-002: Eligibility Student Financial Assistance Cluster U.S. Department of Education Award Period: July 1, 2024 – June 30, 2025 Responsible Person: Wilbert Casaine, Executive Director of Student Financial Aid, 609-771-2211 Corrective Action Plan: During the compliance audit for the fiscal year ending June 30, 2025, the College had one student out of a sample of 40 who was selected for the eligibility compliance and control testing that had an incorrect Pell grant award for the Spring 2025 semester. The student was identified as having received the incorrect amount of Pell based on changes in enrollment intensity during the College’s Add/Drop period. The result of this error was that the student was under-awarded the Pell grant. Once the error was discovered, the student’s Pell grant was increased to the correct amount and reported to COD. The College recognizes the importance of reviewing student enrollment intensity changes throughout the disbursement process to ensure it does not result in errors in the calculation and disbursement of aid in accordance with 34 CFR 668.42, 34 CFR 673.5, 34 CFR 673.6, and 34 CFR 685.301. The College has a robust process for confirming enrollment intensity, which includes automated system reviews of student records, as well as manual/in-person award confirmations. In this student’s case, there were multiple course changes in a short span of time during the Spring semester’s Add/Drop period, which required multiple reviews and revisions to the student’s financial aid package. During one of the reviews, a staff member did not accurately increase the student’s Pell grant award when it was flagged by the system as being incorrect. As part of our corrective action, we have implemented additional reporting enhancements to review and confirm accurate awards. The reports are listed below: • The Office of Records and Registration will provide a comprehensive roster of student registration actions immediately following the Add/Drop period, and continuing weekly, until mid-semester, for review. • The Senior Business Analyst in the Financial Aid Office created an enhanced part-time user edit report of Pell students only who are not full-time at the end of the Add/Drop period for review. • The Analyst in the Financial Aid office developed a report to compare student enrollment intensity changes weekly, after the Add/Drop period is over, to identify and correct discrepancies in real time. The aforementioned corrective actions in the Financial Aid Office were fully operational for the Fall 2025 semester. Internal control reviews confirmed that no award errors occurred during the Fall 2025 term, validating the effectiveness of the new reporting and review structure. The College implemented the corrective action on 08/26/2025. Anticipated Completion Date: Completed in August 2025

Categories

Student Financial Aid Eligibility Reporting

Other Findings in this Audit

  • 1175160 2025-001
    Material Weakness Repeat
  • 1175161 2025-001
    Material Weakness Repeat
  • 1175162 2025-001
    Material Weakness Repeat
  • 1175163 2025-001
    Material Weakness Repeat
  • 1175164 2025-001
    Material Weakness Repeat
  • 1175165 2025-001
    Material Weakness Repeat
  • 1175166 2025-001
    Material Weakness Repeat
  • 1175167 2025-002
    Material Weakness Repeat
  • 1175168 2025-002
    Material Weakness Repeat
  • 1175169 2025-002
    Material Weakness Repeat
  • 1175170 2025-002
    Material Weakness Repeat
  • 1175171 2025-002
    Material Weakness Repeat
  • 1175172 2025-002
    Material Weakness Repeat
  • 1175174 2025-003
    Material Weakness Repeat
  • 1175175 2025-003
    Material Weakness Repeat
  • 1175176 2025-003
    Material Weakness Repeat
  • 1175177 2025-004
    Material Weakness Repeat
  • 1175178 2025-004
    Material Weakness Repeat
  • 1175179 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $37.21M
84.063 FEDERAL PELL GRANT PROGRAM $11.17M
84.365 ENGLISH LANGUAGE ACQUISITION STATE GRANTS $662,067
47.083 INTEGRATIVE ACTIVITIES $602,648
84.126 REHABILITATION SERVICES VOCATIONAL REHABILITATION GRANTS TO STATES $405,768
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $321,456
84.336 TEACHER QUALITY PARTNERSHIP GRANTS $296,958
84.027 SPECIAL EDUCATION GRANTS TO STATES $293,125
59.037 SMALL BUSINESS DEVELOPMENT CENTERS $256,638
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $246,532
84.326 SPECIAL EDUCATION TECHNICAL ASSISTANCE AND DISSEMINATION TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH DISABILITIES $227,868
16.575 CRIME VICTIM ASSISTANCE $187,382
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $166,876
93.364 NURSING STUDENT LOANS $166,461
84.033 FEDERAL WORK-STUDY PROGRAM $150,000
27.011 INTERGOVERNMENTAL PERSONNEL ACT (IPA) MOBILITY PROGRAM $147,605
93.243 SUBSTANCE ABUSE AND MENTAL HEALTH SERVICES PROJECTS OF REGIONAL AND NATIONAL SIGNIFICANCE $144,232
10.310 AGRICULTURE AND FOOD RESEARCH INITIATIVE (AFRI) $132,453
81.049 OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM $115,916
47.084 NSF TECHNOLOGY, INNOVATION, AND PARTNERSHIPS $81,735
15.929 SAVE AMERICA'S TREASURES $67,250
20.205 HIGHWAY PLANNING AND CONSTRUCTION $67,106
47.074 BIOLOGICAL SCIENCES $63,598
43.003 EXPLORATION $63,506
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $55,169
11.473 OFFICE FOR COASTAL MANAGEMENT $48,387
43.001 SCIENCE $48,179
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $47,817
47.041 ENGINEERING $47,206
66.718 NATIONAL COMMUNITY-BASED LEAD OUTREACH AND TRAINING GRANT PROGRAM $44,818
93.788 OPIOID STR $42,845
84.407 TRANSITION PROGRAMS FOR STUDENTS WITH INTELLECTUAL DISABILITIES INTO HIGHER EDUCATION $40,205
43.008 OFFICE OF STEM ENGAGEMENT (OSTEM) $38,400
20.616 NATIONAL PRIORITY SAFETY PROGRAMS $33,684
84.424 STUDENT SUPPORT AND ACADEMIC ENRICHMENT PROGRAM $26,906
97.041 NATIONAL DAM SAFETY PROGRAM $25,000
42.010 TEACHING WITH PRIMARY SOURCES $22,556
11.U00 SEA GRANT SUPPORT $21,453
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $19,160
47.049 MATHEMATICAL AND PHYSICAL SCIENCES $17,949
93.173 RESEARCH RELATED TO DEAFNESS AND COMMUNICATION DISORDERS $16,986
66.046 CLIMATE POLLUTION REDUCTION GRANTS $14,413
93.470 ALZHEIMER’S DISEASE PROGRAM INITIATIVE (ADPI) $8,427
47.070 COMPUTER AND INFORMATION SCIENCE AND ENGINEERING $8,319
47.050 GEOSCIENCES $2,070
94.006 AMERICORPS STATE AND NATIONAL 94.006 $937
11.417 SEA GRANT SUPPORT $713
19.009 ACADEMIC EXCHANGE PROGRAMS - UNDERGRADUATE PROGRAMS $299