Finding 1175662 (2025-004)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-02-27
Audit: 389486
Organization: Florida College, INC (FL)
Auditor: CAPINCROUSE LLC

AI Summary

  • Core Issue: The College miscalculated Pell Grants for Summer 2025 due to outdated enrollment rules.
  • Impacted Requirements: Compliance with 34 CFR 690.63(b) regarding new Pell grant calculation methods.
  • Recommended Follow-Up: Review and update summer enrollment policies to align with current Department of Education guidelines.

Finding Text

Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: Federal Pell Grants 84.063 Federal Award Identification #: 2024-2025 Financial Aid Year Condition: The College did not properly award Pell for the Summer term under the new enrollment intensity calculation requirements. Criteria: 34 CFR 690.63(b) Questioned Costs: $0 Context: For 7 students out of 36 tested, the College did not award summer Pell to students enrolled less than half time as they were following the old Pell summer enrollment rules, resulting in the under-award of $4,902 in Pell grants for the summer 2025 term. Cause: Due to a change in Pell grant calculations for award year 2024-2025, the College misinterpreted Summer Pell regulations. Effect: Students were under-awarded Pell grant for their enrollment level. Identification as repeat finding, if applicable: Not applicable. Recommendation: We recommend the College review policies for summer term enrollment to ensure they align with Department of Education enrollment intensity guidance and apply the new enrollment intensity regulations accordingly. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Pell Calculations Planned Corrective Action: Management acknowledges the error in calculation. As a result of change in student information software and financial aid software in conjunction with manual processes employed during transition of academic years, timing of review and misinterpretation of Summer Pell regulations, this error was not identified timely. This may have carried over to the subsequent term. Management receives this as opportunity to improve upon processes to ensure higher visibility and oversight to reduce any further risk making certain to align policies with DOE. Person Responsible for Corrective Action Plan: Kristina Elmore, Director of Financial Aid Anticipated Date of Completion: February 2026

Categories

Student Financial Aid Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $3.04M
84.063 FEDERAL PELL GRANT PROGRAM $1.14M
84.038 FEDERAL PERKINS LOAN PROGRAM $60,036
84.033 FEDERAL WORK-STUDY PROGRAM $17,459
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $15,286