Finding 1180827 (2025-003)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-18
Audit: 392486
Organization: La Roche University (PA)

AI Summary

  • Issue: One out of 27 Pell Grant calculations was incorrect, leading to excess aid for a student.
  • Requirements Impacted: Compliance with 34 CFR 690 for accurate Pell Grant calculations.
  • Recommended Follow-Up: Enhance review processes and controls to prevent excess aid awards; management is already working on improving procedures.

Finding Text

Federal Program - Student Financial Assistance Cluster, Federal Pell Grant Program Federal Agency - U.S. Department of Education Assistance Listing Number - 84.063 Federal Award Year - June 30, 2025 Criteria: 34 CFR 690 requires Pell grants to be calculated in accordance with the defined parameters. Condition: The Federal Pell Grant for one student out of 27 sampled was calculated incorrectly and the student received excess aid. The sample was not a statistically valid sample. Cause: The University's procedures for the processing of financial aid were in the process of being developed due to turnover in the financial aid department. Questioned Costs: There are no reportable questioned costs associated with this finding. Effect: The University awarded excess aid. Recommendation: The University should increase review and controls to ensure students are not awarded excess aid. Views of Responsible Officials: Management acknowledges and concurs with the finding. The University has a new team overseeing the financial aid process and plans to complete a comprehensive review of procedures and controls to ensure proper awarding in the future.

Corrective Action Plan

Condition The Federal Pell Grant for one student out of 27 sampled was calculated incorrectly, and the student received excess aid. Corrective Action Plan La Roche University concurs with the finding. The Office of Financial Aid has implemented enhanced controls to ensure accurate Federal Pell Grant calculations in accordance with Title IV regulations and U.S. Department of Education Pell Grant payment and disbursement guidance. Immediate Correction of Identified Error The affected student’s Pell Grant award was recalculated using the correct Scheduled Pell amount and enrollment intensity. The overaward was resolved in accordance with federal overpayment and reconciliation requirements, and the Common Origination and Disbursement (COD) system was updated accordingly. Pell Calculation Verification Control A mandatory secondary review process has been implemented for all Pell-eligible students prior to disbursement to prevent future occurrences noted in this finding. This control collectively mitigates the risk of recurrence and strengthen institutional compliance with federal eligibility and disbursement requirements. Name(s) of Contact Person(s) Responsible for Corrective Action • Lawrence Britton, Executive Director of Financial Aid • Ron Elmore, Associate Director of Financial Aid Anticipated Completion Date All corrective actions were implemented as of February 9, 2026.

Categories

Student Financial Aid

Other Findings in this Audit

  • 1180825 2025-001
    Material Weakness Repeat
  • 1180826 2025-002
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $16.38M
84.063 FEDERAL PELL GRANT PROGRAM $1.85M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $186,625
84.033 FEDERAL WORK-STUDY PROGRAM $160,662
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $108,451