Finding 372380 (2023-003)

Significant Deficiency
Requirement
N
Questioned Costs
$1
Year
2023
Accepted
2024-03-05

AI Summary

  • Core Issue: Significant deficiencies in internal controls over Pell Grant eligibility and awarding were identified, affecting 5 out of 60 students tested.
  • Impacted Requirements: Compliance with 34 CFR 690.62 and 34 CFR 690.6(a) regarding Pell Grant payment schedules and student eligibility.
  • Recommended Follow-Up: Implement robust policies and procedures to ensure accurate Pell Grant eligibility and awarding, addressing the turnover in the financial aid office.

Finding Text

Federal Agency: Department of Education Federal program title: Student Financial Aid Cluster Assistance Listing Number: 84.033, 84.063, 84.007, 84.379, 84.268 Federal Award Identification Number and Year: P033A223771 (CWS 22‐23), P063P220377 (Pell 22‐23), P007A223771 (SEOG 22‐23), P268K230377 (Direct Loan 2023) Award Period: July 1, 2022, through June 30, 2023 Type of Finding: Significant Deficiency in Internal Control over Compliance (Other Matters) Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement scheduled published by the Secretary for each award year. The payment schedules take into account the cost of attendance, the student’s EFC and the enrollment status of the student. The Code of Federal Regulations, 34 CFR 690.6(a) states a student is eligible to receive a Federal Pell Grant for the period of time required to complete his or her first undergraduate baccalaureate course of study. Condition: During our testing, we identified 5 students who had Pell award errors. Questioned costs: Known costs of $1,421 Context: 5 instances out of 60 students tested. Cause: Consistent turnover in the financial aid office within recent years had likely led to a disconnect with regard to controls in place to appropriately package and review students' financial aid during this period. Effect: Potential incorrect awarding and unfulfilled financial need of students in similar circumstances. Repeat Finding: No Recommendation: We recommend that the University ensures they have appropriate policies and procedures, as well as safeguards in place to ensure Pell eligibility and awarding is correctly determined. Views of responsible officials: There is no disagreement with the audit finding. Management has addressed their corrective action plan in a separately issued letter.

Corrective Action Plan

Pell Award Errors Finding: As noted in the audit report, there were 5 instances out of 60 students with Pell award errors. Auditors' Recommendation: The University should have appropriate policies and procedure, as well as safeguards in place to ensure Pell eligibility and awarding is correctly determined. School Response: The school agrees with this finding and has initiated corrective action. Corrective Action Plan: For student #5, there was a Pell awarding error where the student was under awarded Pell by $172. The school made the correction to the award and disbursed the additional Pell. For student #16, student was over awarded Pell Grant for $1723 due to incorrect refunds made while adjusting for changes in the student's schedule. The school has refunded the $1723 over award back to the fund source. For student #24, the student was initially awarded correctly, but withdrew during their 2nd term. Due to incorrect Pell Recalculation on the R2T4, the school refunded too much Pell grant, and the student was under awarded by $458. The school has disbursed the additional Pell so the student is now paid correctly. For student #27, the student was over awarded Pell by $350 due to in error in Pell Recalculation based on the student's schedule. The school has refunded the over award to the fund source. For student #43, the student was under awarded by $22 due to an error in Pell Recalculation based on the student's schedule. The school has disbursed the additional Pell grant funds to correct the error. Starting with the Fall 2023 semester the school has implemented a new student information system (SIS), Colleague. The school has also partnered with a third-party servicer, Financial Aid Services (FAS), to assist with packaging. The new SIS automatically adjusts Pell grant whenever there is a change to a student's schedule during the term through the school's census date for each term and module. The system will schedule a refund for any over awards and increase the Pell award for any that may have been under awarded. Since this is no longer reviewed solely by the financial aid office, this is expected to reduce the number of errors in Pell awarding. In addition to the system adjustments, the school's third-party servicer, FAS, will review packaging for any students with changes to the number of registered credits during the term to ensure the system is making adjustments properly and the students are correctly packaged. Name(s) of the contact person{s) responsible for corrective action: Financial Aid Director, Holly Hardnett and third-party servicer, FAS, representative Planned completion date for corrective action plan: • New Colleague SIS implemented live beginning in the Fall semester 2023. • Training for Pell Recalculations in Colleague July 2023. • Registration/schedule changes for term reviewed by FAS at least weekly.

Categories

Questioned Costs Student Financial Aid Eligibility Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 372378 2023-001
    Significant Deficiency Repeat
  • 372379 2023-002
    Significant Deficiency Repeat
  • 372381 2023-004
    Significant Deficiency
  • 372382 2023-001
    Significant Deficiency Repeat
  • 372383 2023-002
    Significant Deficiency Repeat
  • 372384 2023-003
    Significant Deficiency
  • 372385 2023-004
    Significant Deficiency
  • 372386 2023-001
    Significant Deficiency Repeat
  • 372387 2023-002
    Significant Deficiency Repeat
  • 372388 2023-003
    Significant Deficiency
  • 372389 2023-004
    Significant Deficiency
  • 372390 2023-001
    Significant Deficiency Repeat
  • 372391 2023-002
    Significant Deficiency Repeat
  • 372392 2023-003
    Significant Deficiency
  • 372393 2023-004
    Significant Deficiency
  • 948820 2023-001
    Significant Deficiency Repeat
  • 948821 2023-002
    Significant Deficiency Repeat
  • 948822 2023-003
    Significant Deficiency
  • 948823 2023-004
    Significant Deficiency
  • 948824 2023-001
    Significant Deficiency Repeat
  • 948825 2023-002
    Significant Deficiency Repeat
  • 948826 2023-003
    Significant Deficiency
  • 948827 2023-004
    Significant Deficiency
  • 948828 2023-001
    Significant Deficiency Repeat
  • 948829 2023-002
    Significant Deficiency Repeat
  • 948830 2023-003
    Significant Deficiency
  • 948831 2023-004
    Significant Deficiency
  • 948832 2023-001
    Significant Deficiency Repeat
  • 948833 2023-002
    Significant Deficiency Repeat
  • 948834 2023-003
    Significant Deficiency
  • 948835 2023-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $4.21M
84.063 Federal Pell Grant Program $3.09M
84.007 Federal Supplemental Educational Opportunity Grants $66,406
84.033 Federal Work-Study Program $54,868