Finding Text
2025-007 — Eligibility – Significant Deficiency in Internal Control Over Compliance and Noncompliance Federal program information: Funding agencies: U.S. Department of Education Titles: SFA Cluster ALN Number: 84.063 and 84.007 Award years: 2025 Criteria: Per 34 CFR 690.63, Pell Grant awards must be calculated based on the student’s eligibility as determined by information reported on the Institutional Student Information Record (ISIR). The annual maximum award is permitted only for students meeting specified eligibility requirements, and over-awarding is expressly prohibited. Condition: The College incorrectly determined certain students eligibility and awarded funds in excess of what they were eligible for. Cause: The over-awards were the result of errors in the Pell Grant calculation process. The College’s financial aid system or review controls did not ensure that each student’s award matched the amount for which they were eligible based on their ISIR data. Effect: Federal funds were disbursed in excess of the eligible Pell Grant amount for these students. This could lead to required repayment to the U.S. Department of Education and may affect the College’s compliance record. Likely Questioned Costs: $20,100. Context: During Pell Grant eligibility testing, we noted that two students were awarded the maximum Pell Grant award, although their ISIRs indicated they did not qualify for the maximum. Instead, these students qualified for the SAI-Calculated Pell Award. As a result, $878.25 and $1,500 were over-awarded to these two students, respectively. Recommendation: We recommend the College strengthen its financial aid award review procedures to ensure Pell Grant calculations are accurate and are based on each student’s ISIR data and eligibility. The College should promptly research and correct any over-awarded amounts and provide staff training on Pell Grant calculation and eligibility verification. Management’s Response: The College concurs with the finding. Management will provide additional resources to the Financial Aid department to include training and assistance and will implement verification procedures to ensure that amounts awarded are accurate.