Finding 1205821 (2025-005)

Material Weakness Repeat Finding

Requirement

Questioned Costs

Year

2025

Accepted

2026-04-02

Audit: 397569

Organization: Dillard University (LA)

Auditor: SEAN M BRUNO CPAS

AI Summary

Core Issue: Five out of twenty-five students had incorrect PELL Grant calculations, leading to an under-disbursement of $4,077.
Impacted Requirements: Compliance with Title IV regulations regarding accurate PELL Grant disbursement based on enrollment status and financial need.
Recommended Follow-Up: Strengthen review controls, correct affected accounts, and conduct a broader review to prevent future errors.

Finding Text

PELL Grant Calculations Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal PELL Grant Program (PELL) Federal Award Year June 30, 2025 Federal Agencies U. S. Department of Education Pass-Through Entity Not applicable Criteria Title IV regulations, 34 CFR Section 690.62 (a) stipulates that 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 year. Each student’s PELL grant is based upon their enrollment status, cost of attendance and expected family contribution. Conditions and Contexts During my audit I noted five (5) students out of twenty-five (25) tested whose Summer 2025 PELL grant amount was calculated incorrectly. This resulted in the University under-disbursing PELL in the amount of $4,077. Cause The errors appear to be due to inadequate review controls over PELL Grant calculations and/or incorrect application of awarding formulas. Questioned Costs For the purposes of this condition, I have not questioned any costs. Effect Students did not receive the full amount of PELL Grant funds for which they were eligible, resulting in underpayments totaling $4,077 and potential noncompliance with federal requirements. Repeat Finding No. Recommendation The University should strengthen controls over PELL Grant calculations, including implementing a review process to ensure accuracy prior to disbursement. Additionally, the University should identify and correct all affected student accounts and disburse any additional funds owed. Management should also consider performing a broader review to determine if similar errors occurred outside the sample. Management’s Response The University acknowledges the finding regarding errors in Pell Grant calculations for Summer 2025. We acknowledge the importance of ensuring that Pell Grant awards are calculated accurately in accordance with federal regulations. Corrective Actions 1. Immediate Corrections: The University has reviewed the affected student accounts and has processed the remaining Pell funds owed to each student. 2. Strengthened Review Controls: A secondary review process has been implemented to verify Pell Grant calculations prior to disbursement, including confirmation of enrollment status, cost of attendance, and formula application. 3. Staff Training: Financial Aid staff are receiving additional training on Pell awarding requirements and payment schedule usage to ensure the correct application of formulas. 4. Broader File Review: The University is conducting a wider review of Pell disbursements outside the audit sample to identify and correct any similar errors. The University believes these actions will prevent future calculation errors and ensure ongoing compliance with federal regulations.

Corrective Action Plan

Pell Grant Calculations The University acknowledges the finding regarding errors in Pell Grant calculations for Summer 2025. We acknowledge the importance of ensuring that Pell Grant awards are calculated accurately in accordance with federal regulations. Corrective Actions 1. Immediate Corrections: The University has reviewed the affected student accounts and has processed the remaining Pell funds owed to each student. 2. Strengthened Review Controls: A secondary review process has been implemented to verify Pell Grant calculations prior to disbursement, including confirmation of enrollment status, cost of attendance, and formula application. 3. Staff Training: Financial Aid staff are receiving additional training on Pell awarding requirements and payment schedule usage to ensure the correct application of formulas. 4. Broader File Review: The University is conducting a wider review of Pell disbursements outside the audit sample to identify and correct any similar errors. The University believes these actions will prevent future calculation errors and ensure ongoing compliance with federal regulations.

Other Findings in this Audit

1205818 2025-002

Material Weakness Repeat
1205819 2025-003

Material Weakness Repeat
1205820 2025-004

Material Weakness Repeat
1205822 2025-006

Material Weakness Repeat
1205823 2025-011

Material Weakness Repeat
1205824 2025-007

Material Weakness Repeat
1205825 2025-011

Material Weakness Repeat
1205826 2025-008

Material Weakness Repeat
1205827 2025-009

Material Weakness Repeat
1205828 2025-010

Material Weakness Repeat
1205829 2025-011

Material Weakness Repeat
1205830 2025-011

Material Weakness Repeat
1205831 2025-011

Material Weakness Repeat
1205832 2025-011

Material Weakness Repeat

Programs in Audit

ALN	Program Name	Expenditures
84.268	FEDERAL DIRECT STUDENT LOANS	$9.87M
84.063	FEDERAL PELL GRANT PROGRAM	$4.97M
84.031	HIGHER EDUCATION INSTITUTIONAL AID	$4.05M
12.630	BASIC, APPLIED, AND ADVANCED RESEARCH IN SCIENCE AND ENGINEERING	$522,396
84.044	TRIO TALENT SEARCH	$429,672
84.033	FEDERAL WORK-STUDY PROGRAM	$286,248
84.007	FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS	$280,908
84.042	TRIO STUDENT SUPPORT SERVICES	$257,304
12.800	AIR FORCE DEFENSE RESEARCH SCIENCES PROGRAM	$251,032
84.217	TRIO MCNAIR POST-BACCALAUREATE ACHIEVEMENT	$238,039
93.859	BIOMEDICAL RESEARCH AND RESEARCH TRAINING	$197,089
84.120	MINORITY SCIECE AND ENGINEERING INPROVEMENT	$191,930
81.049	OFFICE OF SCIENCE FINANCIAL ASSISTANCE PROGRAM	$189,415
93.364	NURSING STUDENT LOANS	$118,577
47.075	SOCIAL, BEHAVIORAL, AND ECONOMIC SCIENCES	$108,941
84.184	SCHOOL SAFELY NATIONAL ACTIVITIES	$104,784
94.066	AMERICORPS STATE AND NATIONAL	$98,128
47.050	GEOSCIENCES	$79,010
15.941	MISSISSIPPI NATIONAL RIVER AND RECREATION AREA STATE AND LOCAL ASSISTANCE	$73,366
93.865	CHILD HEALTH AND HUMAN DEVELOPMENT EXTRAMURAL RESEARCH	$60,063
47.076	STEM EDUCATION (FORMERLY EDUCATION AND HUMAN RESOURCES)	$53,142
66.616	ENVIRONMENTAL AND CLIMATE JUSTICE COMMUNITY CHANGE GRANTS PROGRAM	$50,000
47.083	INTEGRATIVE ACTIVITIES	$46,106
15.932	PRESERVATION OF HISTORIC STRUCTURES ON THE CAMPUSES OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES (HBCUS).	$36,611
93.307	MINORITY HEALTH AND HEALTH DISPARITIES RESEARCH	$27,632
16.525	GRANTS TO REDUCE DOMESTIC VIOLENCE, DATING VIOLENCE, SEXUAL ASSAULT, AND STALKING ON CAMPUS	$22,569
84.425	EDUCATION STABILIZATION FUND	$18,875
10.217	HIGHER EDUCATION - INSTITUTION CHALLENGE GRANTS PROGRAM	$16,576
47.070	COMPUTER AND INFORMATION SCIENCE AND ENGINEERING	$12,459
45.162	PROMOTION OF THE HUMANITIES TEACHING AND LEARNING RESOURCES AND CURRICULUM DEVELOPMENT	$12,223
93.145	HIV-RELATED TRAINING AND TECHNICAL ASSISTANCE	$6,900
93.421	STRENGTHENING PUBLIC HEALTH SYSTEMS AND SERVICES THROUGH NATIONAL PARTNERSHIPS TO IMPROVE AND PROTECT THE NATIONÂS HEALTH	$6,767
11.307	ECONOMIC ADJUSTMENT ASSISTANCE	$4,626
97.132	FINANCIAL ASSISTANCE FOR TARGETED VIOLENCE AND TERRORISM PREVENTION	$4,229
12.902	INFORMATION SECURITY GRANTS	$93
93.391	ACTIVITIES TO SUPPORT STATE, TRIBAL, LOCAL AND TERRITORIAL (STLT) HEALTH DEPARTMENT RESPONSE TO PUBLIC HEALTH OR HEALTHCARE CRISES	$-714
93.368	21ST CENTURY CURES ACT - PRECISION MEDICINE INITIATIVE	$-717