Finding 1181806 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-20
Audit: 393092
Organization: University of Rio Grande (OH)

AI Summary

  • Core Issue: The University failed to notify some students about their Pell Grant amounts and disbursement details, violating Title IV requirements.
  • Impacted Requirements: Notifications must be sent to all students receiving Pell Grant funds as per 34 CFR 668.165.
  • Recommended Follow-Up: Implement a control system to ensure all notifications are sent, and maintain manual processes until automated workflows are fully operational.

Finding Text

Assistance Listing, Federal Agency, and Program Name ALNs 84.063; Department of Education; Federal Pell Grant Program Federal Award Identification Number and Year N/A Pass through Entity None Finding Type Significant deficiency Repeat Finding No Criteria Before disbursing Pell Grant funds, the institution must notify the student of the amount of Title IV funds including the Pell Grant the students are scheduled to receive and explain how and when those funds will be disbursed. Institutions must follow the general Title IV disbursement notice requirements under 34 CFR 668.165. Condition The University did not provide notifications to certain students related to Pell grants. Questioned Costs None Identification of How Questioned Costs Were Computed N/A Context There were 3 students in a sample of 40 students receiving Pell Grant funds which did not receive a notification. Cause and Effect A control was lacking to ensure the notifications were sent to all students receiving Pell Grant funds. Recommendation We recommend a control be implemented to ensure notifications are sent to all students receiving Pell Grant funds. Views of Responsible Officials and Planned Corrective Actions During the implementation of Anthology Student, the University did not receive sufficient system configuration support or training from Anthology to properly establish automated Financial Aid Offer and Title IV notification workflows. As a result, the institution did not have the required functionality in place to automatically notify students of their Pell Grant eligibility, scheduled disbursement amounts, and the timing of those disbursements as required under 34 CFR 668.165(a). This lack of configuration and training created gaps in communication and ultimately led to instances in which students did not receive timely notifications before Pell Grant funds were disbursed. Once the University identified these deficiencies, immediate corrective measures were implemented to ensure short-term compliance. Beginning in May 2025, the Financial Aid Office instituted a formal manual notification process. Staff now generate Packaging Status and Disbursement reports on a weekly basis, and these reports are reviewed and acted upon at least bi-weekly to ensure that all upcoming disbursements are captured. Individualized Title IV and Pell Grant notifications are sent to students prior to the crediting of funds. To strengthen internal controls, a secondary review was added so that another staff member verifies that all required notifications have been issued before any Title IV disbursement occurs. These interim procedures and safeguards will remain in effect until the automated notification workflow is fully configured, tested, and implemented.

Corrective Action Plan

Finding Number: 2025-004 Condition: The University did not provide notifications to certain students related to Pell grants. Planned Corrective Action: During the implementation of Anthology Student, the University did not receive sufficient system configuration support or training from Anthology to properly establish automated Financial Aid Offer and Title IV notification workflows. As a result, the institution did not have the required functionality in place to automatically notify students of their Pell Grant eligibility, scheduled disbursement amounts, and the timing of those disbursements as required under 34 CFR 668.165(a). This lack of configuration and training created gaps in communication and ultimately led to instances in which students did not receive timely notifications before Pell Grant funds were disbursed. Once the University identified these deficiencies, immediate corrective measures were implemented to ensure short-term compliance. Beginning in May 2025, the Financial Aid Office instituted a formal manual notification process. Staff now generate Packaging Status and Disbursement reports on a weekly basis, and these reports are reviewed and acted upon at least bi-weekly to ensure that all upcoming disbursements are captured. Individualized Title IV and Pell Grant notifications are sent to students prior to the crediting of funds. To strengthen internal controls, a secondary review was added so that another staff member verifies that all required notifications have been issued before any Title IV disbursement occurs. These interim procedures and safeguards will remain in effect until the automated notification workflow is fully configured, tested, and implemented. Contact person responsible for corrective action: Chad Curley, Director of Financial Aid Anticipated Completion Date: Corrective Action is currently implemented, starting May 2025

Categories

Student Financial Aid

Other Findings in this Audit

  • 1181800 2025-001
    Material Weakness Repeat
  • 1181801 2025-001
    Material Weakness Repeat
  • 1181802 2025-002
    Material Weakness Repeat
  • 1181803 2025-002
    Material Weakness Repeat
  • 1181804 2025-003
    Material Weakness Repeat
  • 1181805 2025-003
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $5.08M
84.063 FEDERAL PELL GRANT PROGRAM $4.59M
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $154,652
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $96,598
84.033 FEDERAL WORK-STUDY PROGRAM $92,622
93.645 STEPHANIE TUBBS JONES CHILD WELFARE SERVICES PROGRAM $90,751
93.912 RURAL HEALTH CARE SERVICES OUTREACH, RURAL HEALTH NETWORK DEVELOPMENT AND SMALL HEALTH CARE PROVIDER QUALITY IMPROVEMENT $26,280
84.425 COVID-19 - EDUCATION STABILIZATION FUND $8,588