Finding 1186603 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-25
Audit: 394300
Organization: Summit Academy Oic (MN)

AI Summary

  • Core Issue: The Academy under-awarded Pell Grant funds to one student due to inadequate internal controls.
  • Impacted Requirements: The Academy failed to comply with U.S. Department of Education regulations for properly awarding Pell Grants based on student needs.
  • Recommended Follow-Up: Implement a process to ensure accurate Pell Grant awards based on students' SAI and enrollment status.

Finding Text

2025 – 003: Eligibility - Pell Federal Agency: Department of Education Federal Program Title: Student Financial Aid Cluster – Various Assistance Listing Numbers: Various Federal Award Identification Number and Year: Various Pass-Through Agency: N/A Pass-Through Number: N/A Award Period: July 1, 2024, through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matters Criteria or specific requirement: The U.S. Department of Education offers financial aid to students under two programs: 1. Pell Grant program which provides grants to eligible students enrolled in eligible undergraduate programs and certain post-baccalaureate teacher certificate programs and 2. FSEOG program which provides grants to eligible undergraduate students with priority given to Pell recipients who have the lowest expected family contributions. Condition: The Pell Grant Program has maximum and minimum Pell grant awards established by statue and should be awarded based on the student's needs. During our testing, we noted that one of 40 students tested was under awarded Pell funds. Questioned costs: $432 Context: During our testing, it was noted the Academy's internal control process was not able to detect the under awarding of the Pell. Cause: The Academy did not have a process in place to ensure students were awarded Pell properly based on their SAI. Effect: The Academy is not in compliance with Department of Education requirements for awarding Pell. Repeat finding: No Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. Various Recommendation: We recommend the Academy implement a process to ensure student is being properly awarded based on their SAI and enrollment status. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Financial Aid Coordinators now have a corrected calculator to use when determining the student’s Pell eligibility based on their SAI. The Financial Aid Manager will also look over the award to ensure proper funding has been put into place. Name(s) of the contact person(s) responsible for corrective action: Rachael Farnell Planned completion date for corrective action plan: 07/01/2025

Categories

Student Financial Aid Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1186591 2025-001
    Material Weakness Repeat
  • 1186592 2025-002
    Material Weakness Repeat
  • 1186593 2025-003
    Material Weakness Repeat
  • 1186594 2025-004
    Material Weakness Repeat
  • 1186595 2025-005
    Material Weakness Repeat
  • 1186596 2025-001
    Material Weakness Repeat
  • 1186597 2025-002
    Material Weakness Repeat
  • 1186598 2025-003
    Material Weakness Repeat
  • 1186599 2025-004
    Material Weakness Repeat
  • 1186600 2025-005
    Material Weakness Repeat
  • 1186601 2025-001
    Material Weakness Repeat
  • 1186602 2025-002
    Material Weakness Repeat
  • 1186604 2025-004
    Material Weakness Repeat
  • 1186605 2025-005
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 FEDERAL PELL GRANT PROGRAM $1.66M
17.289 COMMUNITY PROJECT FUNDING/CONGRESSIONALLY DIRECTED SPENDING $773,653
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $35,410
84.033 FEDERAL WORK-STUDY PROGRAM $12,727