Finding 380761 (2023-001)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-03-18

AI Summary

  • Core Issue: Incorrect Pell Grant amounts were awarded, with one student overpaid and another underpaid.
  • Impacted Requirements: Compliance with eligibility criteria for Pell Grants, specifically regarding payment and disbursement schedules.
  • Recommended Follow-Up: Refund $811 to the Department of Education, credit $431 to the affected student, and enhance controls over Pell Grant calculations.

Finding Text

FINDING 2023-001: INCORRECT PELL GRANTS FEDERAL AGENCY: U.S. DEPARTMENT OF EDUCATION PROGRAM NAME: FEDERAL PELL GRANT PROGRAM AND FEDERAL DIRECT LOAN PROGRAM ALN: 84.063 FEDERAL AWARD YEAR: 2022-2023 Compliance Requirement: Eligibility (E.) Criteria: The amount of a student’s Federal 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). Condition: We tested thirty-seven files, twenty-one of which were Pell Grant recipients, and one student received a Pell grant in excess of her allowed amount and one student did not receive the full amount of her allowed Pell grant. The students were eligible for $5,784, but received $6,164. We consider this finding to be an instance of non-compliance and is a repeat finding shown in Section IV of this report as prior year Finding 2022-001. Cause: The condition was caused by using an incorrect number of credits while calculating the Pell. Effect: The result is the student received ineligible Pell monies. Question Costs: $811 Statistical sampling was not used when making sample selections. Recommendation: We recommend the Institution refund $811 to the Department of Education, credit $431 to the student's account and increase controls over Pell Grants. Views of Responsible Officials: The Institution agrees with the Single Audit Finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

FINDING 2023-001: INCORRECT PELL GRANTS A. COMMENTS ON FINDING AND RECOMMENDATION(S): PIMS AGREES WITH THE FINDINGS OF THE AUDITORS THAT STUDENT A1 RECEIVED THE INCORRECT AMOUNT OF PELL AND STUDENT B1 WAS INCORRECTLY ADJUSTED DURING THE R2T4 PROCESS. B. ACTIONS TAKEN OR PLANNED: PIMS HAS FOUND THAT AN EXTRA LAYER OF REVIEW ON EACH PELL DISBURSEMENT ROSTER FROM FAME WILL ELIMINATE INCORRECT PAYMENTS. PIMS REPORTS THE NUMBER OF CREDITS AND ENROLLMENT STATUS TO FAME THEN FAME REQUESTS THE FUNDS BASED ON THIS INFORMATION THAT PIMS ELECTRONICALLY TRANSMITS. IN MOST CASES THE PAYMENT AND THE ENROLLMENT STATUS MATCH BUT FOR STUDENT A1 THAT IS NOT THE CASE. GOING FORWARD, AT THE TIME THE ROSTER IS PRODUCED THE FA OFFICE WILL VERIFY EACH PAYMENT BEFORE THE ROSTER GOES TO THE BUSINESS OFFICE. PIMS WILL ALSO RETURN THE $811 OF 21/22 PELL THAT STUDENT A1 WAS INELLIGIBLE FOR. PELL ADJUSTMENTS DURING THE R2T4 PROCESS WILL BE LOOKED AT BY BOTH THE FA PROCESSOR AND SUPERVISOR. AS WITH THE PELL MATCHING THE STUDENTS' ENROLLMENT WHILE ATTENDING THE INSTITUTE'S FA OFFICE UNDERSTANDS THAT THE SAME CONCEPT IS APPLIED WHEN A STUDENT WITHDRAWAL AND A PELL RE-CALCULATION IS REQUIRED. PIMS WILL RE-REQUEST ON BEHALF OF STUDENT B1 $431 IN PELL GRANT FUNDS.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 380762 2023-002
    -
  • 380763 2023-003
    - Repeat
  • 380764 2023-004
    Significant Deficiency Repeat
  • 380765 2023-005
    Material Weakness
  • 957203 2023-001
    - Repeat
  • 957204 2023-002
    -
  • 957205 2023-003
    - Repeat
  • 957206 2023-004
    Significant Deficiency Repeat
  • 957207 2023-005
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.18M
84.063 Federal Pell Grant Program $494,581
84.007 Federal Supplemental Educational Opportunity Grants $18,450