Finding 1181793 (2025-001)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-20

AI Summary

  • Core Issue: There is a significant deficiency in internal controls over Pell Grant eligibility, leading to an incorrect award calculation for one student.
  • Impacted Requirements: Compliance with 34 CFR 690.63 regarding Pell Grant awards based on accurate FAFSA information and enrollment intensity.
  • Recommended Follow-Up: Implement a procedure to verify student attendance in all scheduled classes to ensure accurate recalculation of Pell awards when enrollment status changes.

Finding Text

FINDING 2025-001 – Special Tests and Provisions – Eligibility: Significant Deficiency in Internal Control Over Compliance (See Finding 2025-001 for included table) Criteria – In accordance with 34 CFR 690.63, Pell Grant Scheduled Awards are based on information provided on the Free Application for Federal Student Aid (FAFSA) form, the presence of a valid Student Aid Index (SAI) on the student’s FAFSA Submission Summary or Institutional Student Information Record (ISIR), the academic year structure, and the Pell Grant cost of attendance (COA) for a full-time student for a full academic year. For term-based programs, awards for part-time students are adjusted based on a student’s enrollment intensity. Condition/Context – A sample of 6 students were selected out of a population of 214 students who received Pell grants during the year ended June 30, 2025. The students’ disbursement records were compared to underlying student eligibility supporting documentation, including but not limited to FAFSA records, student transcripts, and University approved cost of attendance budgets. Effect – One of the six students was identified as having received an incorrect Pell grant in the amount of $128 due to an incorrect calculation of the student’s enrollment intensity percentage. Cause – Due to a change in the student’s enrollment status, the incorrect number of units was used in calculating the Pell award. The difference was not identified in subsequent reconciliations of enrollment. Repeat Finding – Not a repeat finding. Recommendation – We recommend the University establish a procedure to determine whether a Pell awarded student has begun attendance in all scheduled classes for purposes of confirming the accuracy of the enrollment intensity calculated in the packaging process. If a student does not begin attendance in all scheduled classes for a payment period, resulting in a change in the student’s enrollment intensity, the University must recalculate the student’s award for that payment period based on the lower enrollment intensity. Views of Responsible Officials – Management agrees with the finding. A corrective action plan has been created by management and is included in the following section.

Corrective Action Plan

Finding: 2025-001: Special Tests and Provisions – Eligibility – Significant Deficiency in Internal Control over Compliance Corrective Action Plan – The University conducted a review of affected students and identified 19 additional students with enrollment intensity that was incorrectly calculated. The University has returned a total of $2,448 to the Pell Grant program and has written off the corresponding balances on the affected students’ ledgers. In January 2025, the University fully implemented a new, integrated Student Information and Financial Aid System that automates enrollment intensity calculations based on real-time data from the Registrar’s Office. This eliminates manual entry and ensures Pell Grant disbursements are automatically and accurately calculated. There is no option to manually change the Pell enrollment intensity or award amount in the new system. The Financial Aid staff involved in Pell packaging and processing have been retrained on enrollment intensity calculations and system functionality. Contact Person Responsible for Corrective Action: Sally Mickelson, Director of Financial Aid Completion Date: November 13,2025

Categories

Special Tests & Provisions Student Financial Aid Eligibility Significant Deficiency Internal Control / Segregation of Duties

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $80.60M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS - COVID-19 $5.15M
84.063 FEDERAL PELL GRANT PROGRAM $1.02M
93.243 NV DHHS/SAMHSA NORTHERN NV EXPANSION SG00585 $449,802
93.788 EMPOWERED-UNR/SAMHSA SOR 3.0 NCE UNR-25-61 $420,862
93.121 IAMSTRONG WEBER COUNTY $407,911
84.033 FEDERAL WORK-STUDY PROGRAM $258,425
93.788 NEVADA STATE OPIOID RESPONSE (SOR) PROJECT $199,859
93.243 SAMHSA STATE PILOT GRANT PROGRAM FOR TREATMENT FOR PREGNANT AND POSTPARTUM WOMEN $126,524
93.136 OFFICE OF PUBLIC HEALTH INVESTIGATIONS AND EPIDEMIOLOGY $92,362
93.988 DIABETES CONTROL PROGRAMS $89,464
93.394 LIGHT RESEARCH/NIH SBIR $64,548
93.426 HEART DISEASE AND STROKE PREVENTION PROGRAM $61,085
93.669 CA.21-INFANT CASE MGMT - EMPOWERED PROGRAM FY22 $60,527
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $54,000
93.853 TRIAL READINESS AND ENDPOINT ASSESSMENT IN LGMDR1 $37,369
93.103 ESTABLISHING BIOMARKERS AND CLINICAL ENDPOINTS IN MYOTONIC DYSTROPHY $24,691
93.426 THE INNOVATION CARDIOVASCULAR HEALTH PROGRAM $19,141
93.853 VCU/NIH RNA SPLICING FP00020594_SA001 $9,661