Finding 1187059 (2025-001)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-26
Audit: 394750
Organization: Mount Marty University (SD)

AI Summary

  • Core Issue: The University overawarded Pell Grant funds, disbursing $7,395 instead of the correct amount of $6,471.
  • Impacted Requirements: Compliance with 34 CFR 690.62, which mandates accurate Pell Grant disbursement based on eligibility criteria.
  • Recommended Follow-Up: Return the $924 overawarded amount to the Department of Education and enhance internal controls to prevent future errors.

Finding Text

Federal Agency: Department of Education Federal Program Title: Federal Pell Grant Program (PELL) ALN Numbers: 84.063 Award Period: July 1, 2024 through June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control Over Compliance Criteria or Specific Requirement: Per 34 CFR 690.62, institutions must ensure that the amount of Pell Grant funds disbursed does not exceed the student’s calculated eligibility based on the Student Aid Index (SAI), cost of attendance, and enrollment status. Condition: One instance was identified in which the University calculated Pell eligibility of $7,395 for the award year when only $6,471 should have been disbursed. Questioned Costs: $924 in PELL assistance was overawarded to the student. Context: CLA tested a random sample of 40 students from a population of 669 student financial aid recipients. Cause: The University’s system cannot identify status changes within/after the add/drop period (i.e., full-time to less-than-half-time) Effect: One student was disbursed more Pell assistance than they were eligible to receive. Repeat Finding from Prior Years: Yes – 2024‐002. Recommendation: We recommend that management return the overawarded amount of $924 to the U.S. Department of Education and strengthen internal controls over Pell Grant calculations and disbursements to prevent future overawards. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Student Financial Assistance Cluster – 84.063 – Federal Pell Program Recommendation: We recommend the University should return the overawarded amount of $924 to the US Department of Education and should review and strengthen internal controls over Pell Grant calculations and disbursements to prevent future over-awards. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The institution will implement a recurring enrollment report for Pell-eligible students reflecting enrollment term and registered credits as of the date the report is run. The report will be reviewed weekly during summer terms and after census for fall and spring to identify enrollment changes impacting Pell eligibility. Names of the contact persons responsible for corrective action: Lauren Svanda, Director of Financial Aid Planned completion date for corrective action plan: 05/04/2026

Categories

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

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $12.36M
84.063 FEDERAL PELL GRANT PROGRAM $1.39M
93.364 NURSING STUDENT LOANS $806,794
84.116 FUND FOR THE IMPROVEMENT OF POSTSECONDARY EDUCATION $370,000
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $205,134
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $153,291
93.859 BIOMEDICAL RESEARCH AND RESEARCH TRAINING $130,173
84.033 FEDERAL WORK-STUDY PROGRAM $121,363
84.379 TEACHER EDUCATION ASSISTANCE FOR COLLEGE AND HIGHER EDUCATION GRANTS (TEACH GRANTS) $15,088