Finding 2025-017 – U.S. Department of Education (ED), Title IV Student Financial Aid Programs - Federal Pell Grant Under Awarded (Significant Deficiency): Information on the federal program – Federal Direct Student Loans, ALN 84.268, June 30, 2025; Federal Pell Grant Program, ALN 84.063, June 30, 2025; Federal Supplemental Educational Opportunity Grant, ALN 84.007, June 30, 2025; Federal Work-Study Program, ALN 84.033, June 30, 2025. Criteria – In accordance with 34 CFR § 690.62, institutions participating in the Federal Pell Grant Program are responsible for determining and disbursing the appropriate Federal Pell Grant amount for each eligible student based on the student's applicable Scheduled Federal Pell Grant Award and enrollment intensity for the payment period. Additionally, 34 CFR § 668.24 requires institutions to establish and maintain records sufficient to demonstrate the proper administration of Title IV programs and to support the eligibility and amounts of Title IV assistance awarded and disbursed. Federal Pell Grant payments must be calculated in accordance with applicable Federal Pell Grant payment requirements, including the student's enrollment intensity and eligibility for each payment period. Eligible students may also receive additional Federal Pell Grant funds under the Year- Round Pell provisions, subject to applicable eligibility requirements and the statutory maximum of 150 percent of the student's Scheduled Federal Pell Grant Award for the award year. Condition – During testing of Federal Pell Grant eligibility and disbursements, we noted that one student was not awarded the full amount of Federal Pell Grant funds for which the student was eligible during the 2024–2025 award year. The student was enrolled during the Fall, Spring, and summer payment periods and was eligible for Federal Pell Grant funds based on the student's applicable Pell Grant eligibility and enrollment intensity. However, the institution disbursed less Federal Pell Grant assistance than the amount for which the student was eligible. Additionally, the student's institutional account reflected $4,622, while the COD Pell SAS Report reflected $6,019, resulting in an unreconciled difference of $1,397. Cause – The exception appears to have resulted from insufficient controls over the calculation, awarding, and reconciliation of Federal Pell Grant funds, including procedures to ensure that Pell eligibility is appropriately calculated for each payment period and that the University’s disbursement records agree with amounts reported to COD. Effect – Failure to accurately calculate and disburse Federal Pell Grant eligibility resulted in the student receiving less Federal Pell Grant assistance than the amount for which the student was eligible. Additionally, the unreconciled difference between the institution's records and COD increases the risk that Federal Pell Grant disbursements are not accurately recorded, reported, and reconciled. Questioned Costs – $0 Repeat Finding – No Auditor’s Perspective – Of the 60 students selected for testing, one (1) student, or 1.67% of the sample, was identified as having received less Federal Pell Grant assistance than the amount for which the student was eligible. While the exception appears isolated based on the sample tested, accurate calculation and disbursement of Federal Pell Grant eligibility is a fundamental Title IV control. The exception also identified a discrepancy between the institution's student account records and amounts reported to COD, indicating a need for strengthened controls over Pell Grant calculation and reconciliation. Auditor's Recommendation – The University should review the identified student's Federal Pell Grant eligibility for each applicable payment period and determine the exact amount of the under award. The University should make any additional disbursement for which the student remains eligible and take any necessary corrective action in COD in accordance with applicable Federal Student Aid requirements. The University should also strengthen its procedures for calculating Federal Pell Grant awards, including Year-Round Pell, and implement controls to ensure that enrollment intensity, Scheduled Award amounts, and remaining Pell eligibility are reviewed for each applicable payment period. Additionally, the University should reconcile Pell Grant disbursements recorded in the student information system and general ledger to amounts accepted by COD and investigate and resolve the $1,397 discrepancy identified for this student. View of Responsible Officials – Management agrees with the finding. See the accompanying Corrective Action Plan for the University's planned corrective actions, responsible officials, and implementation dates.