Finding 2711 (2023-003)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2023-11-29
Audit: 4590
Organization: Eastern Oklahoma State College (OK)

AI Summary

  • Core Issue: A student received a Pell Grant as a full-time student despite being enrolled in only 10 credit hours, leading to an over award.
  • Impacted Requirements: The disbursement of Pell Grants must align with the student's actual enrollment status, which should reflect full-time status at 12 credit hours.
  • Recommended Follow-Up: Management should reconcile student transcripts with the student management system to ensure Pell awards are accurate and provide additional training to staff on withdrawal procedures.

Finding Text

Criteria: The Payment and Disbursement Schedules established by the U.S. Department of Education sets forth the determining amounts of Pell awards. The Payment Schedule provides the maximum scheduled award a student would receive for a full academic year as a full-time student based on their EFC and COA. The Disbursement Schedules are used to determine annual awards for full-time, three-quarter time, half-time, and less-than-half-time students. The 34 CFR 668.2(b) states, for a program that measures progress in credit hours and uses standard terms (semesters, trimesters, or quarters), 12 semester hours or 12 quarter hours per academic term as a full-time student. Condition: A qualifying student was awarded a Federal Pell Grant for the Fall semester as a full-time student. Upon review of the student’s transcript, it showed the student was enrolled in 10 credit hours, categorizing the student as a three-quarter time student, therefore, an over award of Pell occurred. Cause and Effect: When a student’s withdrawal from a course is prior to the census date in the College’s student management system, the dropped course noted per the Registrar’s office will automatically remove the credit hours for the course dropped. If, however, this occurs after the census date, a manual adjustment to the enrollment credits screen is required. Although the dropped course was appropriately reflected for financial aid, direct loans, and Title IV, it was overlooked in the student management system for Pell credits. As a result, an over awarded occurred as the student was treated as full time rather than as three quarters time for Pell. Recommendation: We recommend that management reconciles student transcripts final credit hours to the credit hours noted in the student management system to ensure awarded Pell grants are at the appropriate amount. Management Response: We concur with this finding and have reinforced with enrollment staff the internal control procedures to ensure the proper process is followed for students who withdraw or are considered no-shows. The enterprise management system for the College should adjust the credit hours for all dropped courses. Due to the student being administratively withdrawn after the last day to drop courses our system did not adjust these courses from the student financial aid aspect. We are aware of this and working toward ensuring this does not occur in the future. We will be scheduling additional training with our system in the upcoming year address this.

Corrective Action Plan

Finding 2023-003 - Federal Pell Grant Enrollment Status Condition: A qualifying student was awarded a Federal Pell Grant for the Fall semester as a full-time student. Upon review of the student's transcript, it showed the student was enrolled in 10 credit hours, categorizing the student as a three-quarter time student, therefore, an over award of PELL occurred. In conjunction with our FY2023 audit, please see the College's corrective action plan below: We concur with this finding and have reinforced with enrollment staff the internal control procedures to ensure the proper process is followed for students who withdraw or are considered no-shows. The enterprise management system for the College should adjust the credit hours for all dropped courses. Due to the student being administratively withdrawn after the last day to drop courses our system did not adjust these courses from the student financial aid aspect. We are aware of this and working toward ensuring this does not occur in the future. We will be scheduling additional training with our system in the upcoming year address this. Expected completion date: 11/17/2023 Party Responsible: Trisha White, Vice President of Business Affairs Contact Information: twhite@eosc.edu

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 2710 2023-002
    Significant Deficiency
  • 579152 2023-002
    Significant Deficiency
  • 579153 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.62M
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $1.73M
17.600 Mine Health and Safety Grants $293,024
84.042 Trio_student Support Services $284,984
84.031 Higher Education_institutional Aid $254,468
84.425 Education Stabilization Fund $204,177
93.498 Provider Relief Fund $137,461
84.007 Federal Supplemental Educational Opportunity Grants $119,879
84.268 Federal Direct Student Loans $80,658
84.033 Federal Work-Study Program $62,812
84.048 Career and Technical Education -- Basic Grants to States $35,094
59.037 Small Business Development Centers $5,930