FAC Explorer

Finding 1790 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-11-14
Audit: 3116
Organization: Anderson University and Subsidiaries (IN)
Auditor: Capincrouse LLP

AI Summary

  • Core Issue: Three out of 28 students had incorrect Pell Grant awards due to enrollment status errors.
  • Impacted Requirements: This violates 34 CFR 690.63(b), leading to questioned costs of $1,273.
  • Recommended Follow-Up: Implement new procedures to ensure Pell awards align with enrollment status.

Finding Text

Incorrect Pell Calculations Significant Deficiency DEPARTMENT OF EDUCATION ALN #: 84.063 Pell Grants Federal Award Identification: 2022-2023 Award Year Condition: 3 students out of 28 tested were not properly awarded Pell based on enrollment status and eligibility. Criteria: 34 CFR 690.63(b) Questioned Costs: $1,273 Context: In the eligibility and disbursement testing, out of 28 students tested, 3 students had Pell awarding errors. 1 student was over awarded Pell by $811, 1 student was over awarded Pell by $462, and 1 student was under awarded Pell by $1,645 as Pell was not awarded and disbursed at all though the student was eligible. These were all corrected as part of the audit process. Cause: University oversight and lack of review at the census dates. Effect: Pell was not awarded correctly based on enrollment status. Identification as repeat finding, if applicable: N/A Recommendation: We recommend the University implement procedures and controls to update Pell to be in alignment with enrollment status. Views of Responsible Officials and Planned Corrective Action: Management is in agreement with this finding. See attached corrective action plan.

Corrective Action Plan

Incorrect Pell Calculations Planned Corrective Action: Anderson University will update course withdrawal forms to include documentation from professors of last date of attendance and affirmation of whether or not the student began the course they are dropping. The Office of Financial Aid and Scholarships will receive all completed withdrawal forms to review for changes to academic level and any necessary return of federal aid. Person Responsible for Corrective Action Plan: David J. Sarah, Director Anticipated Date of Completion: N/A

Categories

Questioned Costs Internal Control / Segregation of Duties Student Financial Aid Eligibility Significant Deficiency

Other Findings in this Audit

  • 1788 2023-001
    Material Weakness
  • 1789 2023-001
    Material Weakness
  • 1791 2023-003
    -
  • 578230 2023-001
    Material Weakness
  • 578231 2023-001
    Material Weakness
  • 578232 2023-002
    Significant Deficiency
  • 578233 2023-003
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.44M
84.038 Federal Perkins Loan Program $2.31M
84.063 Federal Pell Grant Program $2.12M
84.007 Federal Supplemental Educational Opportunity Grants $522,881
84.033 Federal Work-Study Program $272,503
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $15,088