Finding Text
Federal Agency: US Department of Education Federal Program Name: Student Financial Assistance Cluster Assistance Listing Number: 84.063, 84.268, 84.033, 84.007 Federal Award Identification Number and Year: P063P24032 - 2025, P268K252032 - 2025, P033A243410 - 2025, P007A243410 - 2025 Award Period: July 1, 2024 to June 30, 2025 Type of Finding: Compliance, Other Matter Significant Deficiency in Internal Control over Compliance Criteria or specific requirement: The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62) The Code of Federal Regulations (34 CFR 690.80(b)(1)) states if the student’s enrollment status changes from one academic term to another within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period taking into account any changes in the cost of attendance. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements. Condition: The College under-awarded funds for the Pell Grant. Questioned costs: $909 Context: During our testing, we identified one out of 40 students were awarded and disbursed less Pell funds than should have been awarded based on the 2024-2025 Pell payment schedule. The Pell payment schedule considers the cost of attendance, the student's Student Aid Index and the enrollment status of the student. Cause: The College did not have proper procedures in place to capture student enrollment in summer to be packaged for Pell. Effect: Failure to properly determine and disburse Title IV funds based on eligibility for each type of aid in accordance with federal regulations may result in students receiving incorrect funds. Repeat Finding: Yes, 2024-005 Recommendation: We recommend the College review its current procedures for awarding Title IV funds and implement any changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.