Finding 1182180 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393570
Organization: University of Mount Olive, Inc. (NC)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to properly reassess student enrollment status for Pell Grants, leading to over-awarding funds.
  • Impacted Requirements: Compliance with federal regulations on recalculating Pell Grant awards when enrollment status changes.
  • Recommended Follow-Up: Improve procedures for Pell eligibility to prevent over-awards and implement daily checks using automated reports.

Finding Text

Federal Program Information: Pell Grant Program (ALN 84.063) Criteria or Specific Requirement: E. Eligibility: Federal regulations (34 CFR 690.80 (b)(1) & (b)(2)(i)(ii)) require that if the student’s enrollment status changes from one academic term to another within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period taking into account any changes in the cost of attendance. If the student’s projected enrollment status changes during a payment period after the student has begun attendance in all of his or her classes for that payment period, the institution may (but is not required to) establish a policy under which the student's award for the payment period is recalculated. Any such recalculations must take into account any changes in the cost of attendance. If such a policy is established, it must apply to all students. If a student's projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student's enrollment status to reflect only those classes for which the student actually began attendance. Condition: For two of the students selected for testing, the University did not properly reassess the student’s enrollment status and as a result, over awarded Federal Pell Grant funds. Cause: Administrative oversight and insufficient internal control. Effect or Potential Effect: The University was not in compliance with Pell eligibility requirements, resulting in an over award. Questioned Costs: Known questioned costs are $1,848 and projected questioned costs to the entire population are $91,787. Context: 2 out of 18 students selected for testing. Identification as a Repeat Finding: There were no similar findings identified in the prior year. Recommendation: We recommend the University enhance its procedures over Pell eligibility requirements to ensure students are not over awarded. Views of Responsible Officials: Financial Aid will use a daily credit change report generated automatically from academic records to make any manual credit updates in the PowerFAIDS financial system. Additionally, Financial Aid will use selection sets within PowerFAIDS to identify any credit hour mismatches between what is manually reported versus what is integrated from Power Campus, the academic records database.

Corrective Action Plan

Finding 2025-002 Name of Responsible Individuals: Mrs. Tiffany Grandy, Assistant Director of Financial Aid and Mr. Jared Peterson, Financial Aid Counselor Corrective Action: As a result of Audit Finding 2025-002, Financial Aid will use a daily credit change report generated automatically from academic records to make any manual credit updates in the PowerFAIDS financial system. Additionally, Financial Aid will use selection sets within PowerFAIDS to identify any credit hour mismatches between what is manually reported versus what is integrated from Power Campus, the academic records database. Anticipated Completion Date: March 19, 2026

Categories

Internal Control / Segregation of Duties Student Financial Aid Eligibility

Other Findings in this Audit

  • 1182179 2025-001
    Material Weakness Repeat
  • 1182181 2025-003
    Material Weakness Repeat
  • 1182182 2025-004
    Material Weakness Repeat
  • 1182183 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.85M
84.063 FEDERAL PELL GRANT PROGRAM $6.22M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $165,734
84.033 FEDERAL WORK-STUDY PROGRAM $131,064