Finding 1202959 (2025-003)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396217
Organization: Felician University (NJ)

AI Summary

  • Core Issue: A student received less Pell grant funding than entitled due to a calculation error.
  • Impacted Requirements: Compliance with 34 CFR 690.62 regarding accurate Pell award calculations based on cost of attendance and enrollment status.
  • Recommended Follow-Up: Implement a review process to ensure accurate Pell award calculations moving forward.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program Assistance Listing Number: 84.063 Federal Award Identification Number and Year: P063P231812; P063P241812 Award Period: July 01, 2024 - 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 Aid Index (SAI) and the enrollment status of the student. Condition: A student was under-awarded Pell funds due to an award calculation error. Questioned costs: $458 Context: During our testing, 1 student out of a sample of 40 was under-awarded Pell due to a calculation error during initial award processing. Cause: The University calculated the student's Pell award incorrectly. Effect: The student was under-awarded Pell funds. Repeat finding: No. Recommendation: We recommend that a review is implemented to ensure calculations of Pell awards are performed based on the accurate cost of attendance, SAI and enrollment status of the student. Views of responsible officials: There is no disagreement with the audit finding.

Corrective Action Plan

2025-003 – Pell Under-Award Federal Pell Grant Program – Assistance Listing No. 84.063 Recommendation: We recommend that a review is implemented to ensure calculations of Pell awards are performed based on the accurate cost of attendance, SAI and enrollment status of the student. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: During the audit review, it was determined that student (ID: 0364337) was under-awarded a Federal Pell Grant due to a manual calculation error. Based on remaining Lifetime Eligibility Used (LEU), the student was eligible for $1,085 but was awarded $627.97. To address this finding, the institution has strengthened internal controls by eliminating manual calculations as a primary method for determining Pell eligibility, implementing a mandatory secondary review prior to disbursement, and requiring verification of LEU through the COD system. In addition, ongoing monthly quality assurance reviews have been established, and staff training has been completed to reinforce compliance with Pell Grant calculation requirements, including Cost of Attendance (COA), Student Aid Index (SAI), and enrollment status. Name(s) of the contact person(s) responsible for corrective action: Kathy Prieto -Executive Director Student Financial Services Planned completion date for corrective action: March 2026.

Categories

Student Financial Aid Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 1202953 2025-001
    Material Weakness Repeat
  • 1202954 2025-001
    Material Weakness Repeat
  • 1202955 2025-002
    Material Weakness Repeat
  • 1202956 2025-002
    Material Weakness Repeat
  • 1202957 2025-002
    Material Weakness Repeat
  • 1202958 2025-002
    Material Weakness Repeat
  • 1202960 2025-004
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $13.62M
84.063 FEDERAL PELL GRANT PROGRAM $7.06M
11.028 CONNECTING MINORITY COMMUNITIES PILOT PROGRAM $625,817
84.031 HIGHER EDUCATION INSTITUTIONAL AID $495,492
84.033 FEDERAL WORK-STUDY PROGRAM $314,837
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $265,155
22.638 Build and Broaden Grant $141,948
47.076 STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES) $98,751
16.525 GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS $55,074
45.162 PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT $27,651