Finding Text
Audit Finding Reference Number Questioned Cost 2024 – 009 – Pell Grant Calculations $5,546 Federal Program and Specific Federal Award Identification ALN Title and Number 84.063 Federal PELL Grant Program (PELL) Federal Award Number June 30, 2024 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. Condition and Context During my audit I noted two (2) students out of eighty-seven (87) tested whose Pell grant amount was calculated incorrectly. This resulted in ABC over-disbursing Pell in the amount of $5,546. Cause ABC did not establish, implement and review adequate internal controls to ensure Federal Pell Grant awards were accurately calculated prior to disbursement. Specifically, management did not perform adequate reviews of Pell Grant award calculations or reconcile award information maintained in Jenzabar to supporting student eligibility information before disbursing Title IV funds. Questioned Costs For purposes of this condition, I have questioned costs totaling $5,546. Effect As a result of these deficiencies, Federal Pell Grant funds were over-disbursed by $5,546 to two (2) students. Consequently, ABC did not comply with federal eligibility and award calculation requirements, resulting in questioned costs of $5,546 and increasing the risk that Title IV funds were awarded in amounts exceeding those permitted under federal regulations. Repeat Finding Yes. See Schedule of Prior Year Audit Finding 2023-009. Recommendation I recommend that ABC strengthen its internal controls over the Federal Pell Grant awarding process by implementing procedures to ensure Pell Grant awards are accurately calculated prior to disbursement. Management should utilize Jenzabar system controls and award calculation reports to verify student eligibility, enrollment status, and award amounts, perform documented supervisory reviews of Pell Grant calculations before disbursement, and promptly identify and correct any award discrepancies to ensure compliance with federal regulations. Management’s Response The Institution concurs with this finding. Arkansas Baptist College will adhere to its policies, procedures, processes, and federal guidelines as it relates to calculating and awarding Pell. Arkansas Baptist College will return any ineligible Management funds accordingly.