Finding Text
Federal agency: Department of Education
Federal program title: Student Financial Assistance Cluster
Assistance Listing Number: 84.007, 84.033, 84.063, 84.268
Federal Award Identification Number and Year: P007A223438 - 2023, P033A223438 - 2023, P063P222047 - 2023, P268K232047 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Compliance, Other Matter
• Significant Deficiency in Internal Control over Compliance
Criteria or specific requirement: Per 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement schedule published by the Secretary for each award year. Per 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations, and program compliance requirements.
Condition: The University incorrectly awarded Pell Title IV Funds.
Context: During our testing we identified 2 out of 40 students were awarded incorrect Pell amounts based on the 2022-23 Pell payment schedule. Of the two instances, one student was under awarded $861 of Pell, while the other student was over awarded $564. The Pell payment schedule takes into account the cost of attendance, the student's Expected Family Contribution and the enrollment status of the student.
Questioned costs: None.
Cause: The University did not award the correct amounts of the Pell.
Effect: Students were not awarded proper amount of Pell they were eligible for.
Repeat Finding: No.
Recommendation: We recommend the University review its current procedures for awarding Title IV funds and implement changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. We also recommend the University disburse the proper Pell award to these students.
Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.