Finding 1221349 (2025-005)

Item 2025-005 – Special Tests: Disbursements to or on Behalf of Students Federal Program – Federal Pell Grant Federal ALN – 84.063 Federal Award Number – P063P188097 Federal Award Year – September 30, 2025 Federal Agency – U.S. Department of Education Pass-through Entity – Not Applicable Significant Deficiency Title 34 CFR Section 690.62 states the amount of a student's Federal Pell Grant for an academic year is based upon the payment and disbursement schedule published by the Secretary for each award year. Out of a sample of 14 students, one student Federal Pell Grant calculation was calculated incorrectly resulting in an under award to the student. The sample was not a statistically valid sample but was determined using Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Audit and Accounting Guide for Government Auditing Standards and Single Audits. The College did not implement the new Federal Pell Grant calculations to include enrollment intensity. Not a repeat finding. Inaccurate calculation of the Title IV funds to be given to a student can impact the student's financial wellbeing, ability to make timely financial and strategic decisions, and ability to enroll in the Title IV program in future periods. We recommend that the Financial Aid Coordinator institute procedures that would ensure that Pell calculations are performed accurately and policy changes from the Department of Education are reviewed. Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.