Finding 366610 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-02-08
Audit: 289516
Organization: Eastern Oregon University (OR)

AI Summary

  • Core Issue: A student's Pell Grant was not properly disbursed due to a failure to recalculate the award based on their enrollment status.
  • Impacted Requirements: Compliance with federal regulations (34 CFR 690.62 and 34 CFR 690.80) regarding Pell Grant disbursement and internal controls (2 CFR 200.303) was not maintained.
  • Recommended Follow-Up: The University should review and update its procedures for awarding Title IV funds to ensure compliance with federal regulations.

Finding Text

Criteria or specific requirement: 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 award year (34 CFR 690.62). The Code of Federal Regulations (34 CFR 690.80(b)(1)) states if the student’s enrollment status changes from one academic term to another within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period taking into account any changes in the cost of attendance. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure students are awarded and disbursed the proper federal fund amounts. Condition: During our testing of disbursements to eligible students, we noted one instance of a Pell award not being properly disbursed. Questioned costs: None reported. Context: In our eligibility sample of 40, one student was not properly disbursed their Pell award. Student was enrolled half-time for fall and winter, and less-than-half time for spring. Student only received a disbursement in fall. Cause: The students award was based on full-time enrollment level, but the student was only enrolled half-time in fall and winter. Pell recalculation was not performed for this student, and remaining aid was not paid. Effect: A student did not receive all their Pell Grant Aid. Repeat Finding: No. Recommendation: We recommend the University review the current procedures for awarding Title IV funds and implement changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. View of Responsible Official: The University agrees with the finding.

Corrective Action Plan

Student Financial Assistance Cluster – Assistance Listing No. 84.063 Recommendation: We recommend the College review the current procedures for awarding Title IV funds and implement any changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Upon discovering that a student’s remaining Pell Grant LEU had not been rolled forward to the next term, it was immediately recalculated and disbursed. The process for calculating Pell is done in batch after each term has ended. Financial aid has added a reminder once per term to verify internally that the process has been run for the previous term, and any students with low LEU get their remaining eligibility rolled forward. If it has not been run, monitoring will continue until it is completed. Name(s) of the contact person(s) responsible for corrective action: Jason Hibbert Planned completion date for corrective action plan: March 22, 2024.

Categories

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

Other Findings in this Audit

  • 366611 2023-002
    Significant Deficiency
  • 366612 2023-002
    Significant Deficiency
  • 366613 2023-002
    Significant Deficiency
  • 366614 2023-002
    Significant Deficiency
  • 366615 2023-002
    Significant Deficiency
  • 366616 2023-003
    Significant Deficiency
  • 943052 2023-001
    Significant Deficiency
  • 943053 2023-002
    Significant Deficiency
  • 943054 2023-002
    Significant Deficiency
  • 943055 2023-002
    Significant Deficiency
  • 943056 2023-002
    Significant Deficiency
  • 943057 2023-002
    Significant Deficiency
  • 943058 2023-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Direct Student Loans $11.77M
84.063 Federal Pell Grant Program $4.27M
93.600 Head Start $2.06M
84.425 Covid-19 - Education Stabilization Fund - Institutional Support $1.28M
84.031 Higher Education Institutional Aid $499,523
84.007 Federal Supplemental Educational Opportunity Grants $245,648
84.425 Covid-19 - Education Stabilization Fund - Sip $181,987
17.600 Mine Health and Safety Grants $169,523
84.116 Fund for the Improvement of Postsecondary Education $168,713
47.074 National Science Foundation $142,604
84.033 Federal Work-Study Program $115,685
16.575 Crime Victim Assistance $85,010
84.367 Supporting Effective Instruction State Grants (formerly Improving Teacher Quality State Grants) $67,906
10.558 Child and Adult Care Food Program $59,656
84.379 Teacher Education Assistance for College Ad Higher Education Grants $17,918
84.424 Student Support and Academic Enrichment Program $17,156
59.037 Small Business Development Centers $16,896
93.243 Substance Abuse and Mental Health Services - Projects of Regional and National Significance $516
84.425 Covid-19 - Education Stabilization Fund - Geer $357