Finding Text
Finding No.: 2024-011 - Eligibility Identification of the federal program: Federal Agency: U.S. Department of Education AL No. and Title: 84.063 Federal Pell Grant Program Federal Award No.: P063Q194572, P063Q204572, P063Q214572, P063Q224572, P063Q234572, P063P224572, P063P234572, P063P244572 Criteria or specific requirement (including statutory, regulatory or other citation): 34 CFR 668.24(c)(1)(iii) states “The records that an institution must maintain in order to comply with the provisions of this section include but are not limited to documentation of each student’s or parent borrower’s eligibility for title IV.” 34 CFR 668.24(e)(1) states “An institution shall keep records relating to its administration of the Federal Perkins Loan, FWS, FSEOG, Federal Pell Grant, ACG, National SMART Grant, or TEACH Grant Program for three years after the end of the award year for which the aid was awarded and disbursed under those programs.” Condition: No documentation was on file to support eligibility determination. Cause: The College lacks adequate internal control policies and procedures over eligibility, including retaining documentation to support eligibility determination and accurate calculation of grant award. Effect or potential effect: The College is in noncompliance with applicable eligibility requirements. Questioned costs: $8,070 Context: We identified 1,785 participants during the year with grant totaling $7,423,174. We tested 40 participants with grant totaling $171,609. The samples were statistically valid. For two (or 5%) participants with grant totaling $8,070, documentation that determines the student’s citizenship or expected family contribution was not on file. Identification as a repeat finding, if applicable: This is not a repeat finding. Recommendation: The College management should improve internal control policies and strengthen controls over eligibility, specifically, retaining documentation to support eligibility determination and accurate calculation of grant award. Views of responsible officials: The College agrees with the finding and provides details in its Corrective Action Plan.