Finding Text
Audit Finding Reference Number Questioned Cost
2022 – 009 – Pell Grant Annual and Lifetime Eligibility $15,822
Federal Program and Specific Federal Award Identification
CFDA Title and Number
84.063 Federal PELL Grant Program (PELL)
Federal Award Number
June 30, 2022
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.
The Student Financial Aid Handbook, Section E, Eligibility, indicates students that receive Pell may not receive more than six (6) scheduled awards (twelve (12) semesters, or the equivalent) as measured by the percentage of “lifetime eligibility used” (LEU). The LEU maximum percentage for student eligibility is six hundred percent (600%).
Conditions and Contexts
During my audit I noted the following:
• six (6) students out of fifty-five (55) tested whose Pell grant amount was calculated incorrectly. This resulted in ABC under-disbursing Pell in the amount of $15,822; and
• one (1) student out of five (5) tested who was flagged by the Department of Education for possibly exceeding their Lifetime Eligibility Usage of 600%. It was determined the student had not exceeded their LEU. However, ABC reduced the amount of Pell disbursed for the 2021-2022 academic year. It was determined the student had not exceeded Lifetime Eligibility Usage of 600% and could receive the full amount of Pell of $6,495 instead of the $1,624 disbursed. This resulted in ABC under-disbursing Pell in the amount of $4,871. This amount is included in bullet 1 above.
Cause
It appears that ABC did not review and verify all components of the Pell grant calculation to ensure the proper amount of Pell was disbursed.
Questioned Costs
For purposes of this condition, I have questioned costs totaling $15,822.
Effect
ABC disbursed excess Pell grant funds to students.
Repeat Finding
No.
Recommendation
I recommend that ABC adhere to federal prescribed regulations by calculating and disbursing Pell grants in accordance with the Department of Education’s Pell payment schedule and in accordance with the Lifetime Eligibility Usage limits.