Finding Text
2025 – 001 – Pell Grant Under Award Federal Agency: U.S. Department of Education Federal Program Name: Student Financial Aid Assistance Listing Number: Student Financial Aid Cluster Award Period: July 1, 2024 to June 30, 2025 Type of Finding: • Significant Deficiency in Internal Control over Compliance • Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement scheduled published by the Secretary for each award year. The payment schedules take into account the cost of attendance, the student’s SAI and the enrollment status of the student. Condition: During our testing, we noted for 1 out of 40 students tested, they were under-awarded Pell due to an incorrect enrollment intensity during the award packaging process. Questioned Costs: $90 Context: Pell Grant awards are determined based on federal eligibility criteria and must be accurately packaged to ensure students receive the correct amount of aid. Manual errors in the packaging process can lead to under-awards or over-awards, resulting in noncompliance with U.S. Department of Education regulations and potential financial impact for students and the institution. Cause: Management incorrectly calculated the student's Pell award due to using an enrollment intensity less than the student's actual enrollment. Effect or Potential Effect of Finding: Students were under-awarded Pell funds. Repeat Finding: No. Recommendation: We recommend the University implement a review process that compares enrolled credits to Pell awards to ensure all students receive the correct Pell Grant amounts. Views of Responsible Official: There is no disagreement with the audit finding.