Finding 1182288 (2025-002)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-24
Audit: 393699
Organization: Kellogg Community College (MI)

AI Summary

  • Core Issue: One student did not receive an additional Pell Grant award of $892 due to a change in their expected family contribution that was not processed.
  • Impacted Requirements: The institution must recalculate and disburse Pell Grant awards when a student's expected family contribution changes during the award year.
  • Recommended Follow-Up: Implement procedures to regularly review changes in student aid index information to ensure all eligible awards are disbursed accurately.

Finding Text

Assistance Listing, Federal Agency, and Program Name Student Financial Assistance Cluster Federal Pell Grant Program (ALN 84.063) Federal Award Identification Number and Year Various Pass through Entity None Finding Type Significant deficiency Repeat Finding No Criteria The institution shall recalculate a Federal Pell Grant award for the entire award year if the student's expected family contribution changes at any time during the award year. The change may result from (i) The correction of a clerical or arithmetic error under § 690.14; or submission of inaccurate information (ii) A correction based on information required as a result of verification under 34 CFR part 668, subpart E. CFR 34 690.80. Condition Out of 22 students tested for Pell eligibility we identified one student whose student aid index (formerly known as expected family contribution) was changed, however the additional award was never disbursed to the student. Questioned Costs $892 Identification of How Questioned Costs Were Computed The $892 of questioned costs were determined by calculating the total pell required based on the final adjusted student aid index compared to the aid disbursed to the student. Context The College did not have appropriate controls in place to identify students who received a new student aid index information after the initial disbursement of Pell. Out of our sample of 22 students tested for eligibility, one student received a correction that increased the students award, however it was not disbursed. Cause and Effect The College did not have appropriate controls in place to review the changes to the student aid index. As a result, the College did not award and disburse the appropriate amount to the student. Recommendation The College should implement procedures and controls to review all students who received revisions to the Institutional Student Information Record or the department of educations electronic data exchange through its central processor. Views of Responsible Officials and Planned Corrective Actions System generated ISIR’s and corrections will be reviewed for changes and then given to the Director for weekly review to ensure the updates and awards are accurate and complete.

Corrective Action Plan

Condition: Out of 22 students tested for Pell eligibility we identified one student whose student aid index (formerly known as expected family contribution) was changed, however the additional award was never disbursed to the student. Planned Corrective Action: System generated ISIR’s and corrections will be reviewed for changes and then given to the Director for weekly review to ensure the updates and awards are accurate and complete Contact person responsible for corrective action: Nikki Jewell Anticipated Completion Date: June 30, 2026

Categories

Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 1182284 2025-001
    Material Weakness Repeat
  • 1182285 2025-001
    Material Weakness Repeat
  • 1182286 2025-001
    Material Weakness Repeat
  • 1182287 2025-002
    Material Weakness Repeat
  • 1182289 2025-001
    Material Weakness Repeat
  • 1182290 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $8.76M
84.268 FEDERAL DIRECT STUDENT LOANS $3.60M
21.027 CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS $1.25M
84.042 TRIO STUDENT SUPPORT SERVICES $288,280
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $216,133
84.033 FEDERAL WORK-STUDY PROGRAM $98,523
84.047 TRIO UPWARD BOUND $33,286
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $20,145
84.048 CAREER AND TECHNICAL EDUCATION -- BASIC GRANTS TO STATES $7,834
84.425 COVID-19 - EDUCATION STABILIZATION FUND $2,334