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SCHEDULE OF FINDINGS AND QUESTIONED COSTS for the year ended December 31, 2025 Section III – Federal Award Findings and Questioned Costs Finding 2025-002 – Failure to Send Financial Aid Notifications to Pell Recipients Grantor: U.S. Department of Education Program: Student Financial Assistance Cluster Assistance Listing#: 84.063 Award Title: Federal Pell Grant Program Award Years: 7/2024 – 6/2026 Criteria 34 CFR 668.165 (a)(1)Before an institution disburses title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. Condition Of the population of students who were awarded and received federal student financial assistance during the fiscal year, 25 were selected for disbursement testing. Of the 25 students selected, three instances were noted during the Fall 2025 semester in which Pell Grants were disbursed to the student before they received a financial aid notification from Brigham Young University-Idaho (the University). Cause Management implemented a hold on sending financial aid notification to students during the month of September 2025 to address other monitoring controls. Even though management implemented this hold, Pell Grants were still automatically disbursed to students during this period. Management subsequently sent these notifications to each student between the months of October 2025 and January 2026. Effect The students were not notified of the amount of the Pell Grant awarded and when the funds would be disbursed in advance of disbursing the funds. Questioned Costs None. Repeat Finding in the Prior Year No. Recommendation We recommend the University enhance controls over the financial aid process to ensure financial aid notifications are sent to students prior to disbursement of funds. We also recommend that the University provide additional training to its personnel involved in the financial aid process surrounding this requirement. Management’s Views and Corrective Action Plan Management’s response is reported in management’s views and corrective action plan included at the end of this report