Finding 1179163 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-12

AI Summary

  • Core Issue: Errors in Pell grant awards led to one student being over-awarded and three students under-awarded funds.
  • Impacted Requirements: Compliance with 34 CFR 690.62 regarding accurate Pell grant calculations based on cost of attendance and enrollment status.
  • Recommended Follow-Up: The University should review and improve its procedures to ensure accurate calculation of student award amounts.

Finding Text

Finding 2025-003: Eligibility Federal agency: U.S. Department of Education Federal program title: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.033, 84.268, 84.007 Award Period: September 1, 2024, through August 31, 2025 Type of Finding:  Significant Deficiency in Internal Control over Compliance  Other Matters Criteria or Specific Requirement: In accordance with, 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement schedule published by the Secretary for each award year. The payment schedule takes into account the cost of attendance, Student Aid Index (SAI), and the enrollment status of the student. Condition/Context: During our testing of 40 students, which is a statistically valid sample, we noted 1 student was over-awarded Pell grant funds and 3 students were under-awarded Pell grant funds. Questioned Costs: $2,349 net under-award. Cause: The University's internal controls did not identify the errors for compliance with the criteria mentioned above. Effect: Certain students were under-awarded and over-awarded Pell funds. Repeat Finding: No. Recommendation: We recommend the University review its procedures to ensure that student award amounts calculated are accurate. Views of Responsible Officials: Please refer to the attached corrective action plan.

Corrective Action Plan

Eligibility Student Financial Assistance Cluster – Assistance Listing No. 84.063, 84.033, 84.268, 84.007 Recommendation: We recommend the University review its procedures to ensure that title IV funds is awarded correctly. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Pell Grant awards are reviewed prior to each disbursement. SCU has strengthened this control to ensure award amounts are adjusted to accurately reflect each student’s enrollment intensity at the time of disbursement. This review is documented and completed by the Director of Financial Aid before funds are released to ensure compliance with federal requirements. Name(s) of the contact person(s) responsible for corrective action: Laney Morales, Director of Financial Aid Planned completion date for corrective action plan: 12/1/2025

Categories

Student Financial Aid Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1179152 2025-001
    Material Weakness Repeat
  • 1179153 2025-001
    Material Weakness Repeat
  • 1179154 2025-001
    Material Weakness Repeat
  • 1179155 2025-001
    Material Weakness Repeat
  • 1179156 2025-002
    Material Weakness Repeat
  • 1179157 2025-002
    Material Weakness Repeat
  • 1179158 2025-002
    Material Weakness Repeat
  • 1179159 2025-002
    Material Weakness Repeat
  • 1179160 2025-003
    Material Weakness Repeat
  • 1179161 2025-003
    Material Weakness Repeat
  • 1179162 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $57.12M
84.063 FEDERAL PELL GRANT PROGRAM $669,945
93.213 Acupuncture for Medicare Beneficiaries with Chronic LowBack Pain; Access,Utilization, and Outcomes Addressing Dose Effects for cLBP $622,173
84.033 FEDERAL WORK-STUDY PROGRAM $420,330
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $23,724
93.213 Spinal Manipulative Therapy vs. Prescription Drug Therapy for Care of Aged Medicare Beneficiaries with Neck Pain $19,344
93.279 Integrated Care for Chronic Pain and Opioid Use Disorder $13,867
93.213 RAND REACH Center $8,715