Finding 35126 (2022-001)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2023-01-03

AI Summary

  • Core Issue: The University incorrectly calculated Pell Grants for some distance education students due to enrollment changes.
  • Impacted Requirements: Compliance with 34 CFR 690.63(b) regarding accurate Pell award calculations.
  • Recommended Follow-Up: Implement a process to adjust Pell awards based on enrollment status and confirm attendance through academic activities.

Finding Text

2022-001 Incorrect Pell Calculations Other Matter DEPARTMENT OF EDUCATION ALN #: 84.063 Federal Award Identification #: 2021-22 Financial Aid Year Condition: The University did not properly award Pell for distance education/modular students when the student had enrollment changes in the term. Criteria: 34 CFR 690.63(b) Questioned Costs: $1,042 Context: Out of 38 students tested student, 2 students were not awarded the correct amount of Pell based on enrollment status. 1 student was originally awarded at ? but attended ? time, resulting in an $812 under award of Pell. This student was corrected as part of the audit process. 1 student withdrew from the term but did not have Pell recalculated for ? enrollment prior to the R2T4 calculation resulting in a net over award of $1,042. Cause: These were oversights due to changing enrollment status. Effect: Pell was not awarded correctly based on enrollment status resulting in an incorrect amount of Pell disbursed to these students Identification as repeat finding, if applicable: not applicable. Recommendation: We recommend a process be used to adjust Pell to be paid in alignment with enrollment status. We recommend that attendance in each module be confirmed by an academic related activity and financial aid office be notified so that appropriate changes to Pell awards can be made timely. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding. See corrective action plan.

Corrective Action Plan

Incorrect Pell Calculations Planned Corrective Action: The University will establish additional controls over changes in enrollment status after the initial enrollment date and return of Title IV funds, including verification of enrollment status after the third week of initial enrollment and verification of enrollment status upon return of Title IV funds. Person Responsible for Corrective Action Plan: Roberta Martinez, Manager of Student Financial Services Anticipated Date of Completion: February 2023

Categories

Questioned Costs Student Financial Aid Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $8.21M
84.063 Federal Pell Grant Program $1.30M
84.425 Covid-19 Education Stabilization Fund Heerf - Student Aid Portion $1.19M
84.425 Covid-19 Education Stabilization Fund Heerf - Institutional Portion $1.04M
84.425 Covid-19 Education Stabilization Fund Heerf- Minority Serving Institutions $142,144
84.033 Federal Work-Study Program $117,908
84.007 Federal Supplemental Educational Opportunity Grants $74,385