Finding Text
Finding 2024-016 - U.S. Department of Education (Title IV Student Financial Aid Programs - Pell Grant Disbursed Without Meeting Summer Eligibility Requirements (material weakness): Information on the federal program: Federal Direct Student Loans, FAL No. 84.268, June 30, 2024; Federal Pell Grant Program, FAL No. 84. 063, June 30, 2024; Federal Supplemental Educational Opportunity Grant, FAL No. 84.007, June 30, 2024; Federal Work-Study Program, FAL No. 84.033, June 30, 2024. Criteria – Per HEA 401 (c), A Pell Grant may be awarded for additional terms within the same award year only if the student is enrolled at least half-time and is eligible for payment for additional coursework beyond the student’s annual award amount. Institutions must ensure the student meets all summer Pell eligibility criteria before disbursing additional Pell funds. Condition – During testing of Pell Grant disbursements, we identified that one (1) out of sixty (60) students received a summer Pell Grant even though the student did not meet the federal eligibility criteria for a summer disbursement under Year-Round Pell provisions. The student did not meet the required enrollment or acceleration requirements but was nevertheless awarded and disbursed Pell funds for the summer term. Cause – The exception occurred due to lack of review to confirm Pell eligibility before awarding funds, and misinterpretation or misapplication of year-round Pell rules. Effect - The University disbursed Pell funds to a student who did not qualify, resulting in $793.00 in questioned costs. Disbursing Pell funds without verifying eligibility places the University out of compliance with federal requirements. Improper Pell disbursements may lead to required fund repayment, program review findings, and administrative capability concerns under 34 CFR § 668.16. Questioned Costs - $793 Perspective – Although this exception occurred for only one student, summer Pell awarding errors are treated seriously because they involve strict eligibility criteria and Year-Round Pell provisions, which are closely monitored by the Department of Education. Even a single error indicates a potential weakness in the school’s summer awarding review process and a need for stronger eligibility verification controls. Repeat Finding - No Auditor’s Recommendation - The University should update and strengthen its Pell Grant awarding and review procedures to align with current Pell Grant regulations and enrollmentintensity– based awarding requirements. The University should also enhance supervisory review for summer awarding. Management’s Response – Management has added secondary review, implemented periodic internal monitoring, and conducted targeted staff training tied to updated procedures. View of Responsible Officials – Management agrees with the finding and acknowledges that Pell Grant funds were disbursed for summer enrollment without consistently ensuring and documenting that all federal summer eligibility requirements were met prior to disbursement.