Finding 383761 (2022-002)

Material Weakness
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2024-03-22
Audit: 296794
Organization: Denmark Technical College (SC)

AI Summary

  • Core Issue: The College did not award the maximum allowable PELL Grant to 2 out of 40 eligible students for the year ended June 30, 2022.
  • Impacted Requirements: Title IV mandates that grants be based on enrollment status, cost of attendance, and expected family contribution.
  • Recommended Follow-Up: The College should update its policies and procedures to ensure compliance with PELL Grant awarding requirements.

Finding Text

Criteria: Title IV requires institutions to award the maximum allowable amount of PELL Grant based on the individual’s enrollment status, cost of attendance and expected family contribution. Condition: In 2 out of 40 instances for the year ended June 30, 2022, the College failed to award the maximum amount of Pell Grant that each student was deemed eligible to receive. Context: We addressed the matter with College management who are aware of the requirements to award the maximum allowable amount of PELL Grant based on the individual’s enrollment status, cost of attendance and expected family contribution. Effect: Failure to properly review and calculate PELL Grants could result in noncompliance and misappropriation of federal funds that are not detected during the normal course of business. Cause: Management oversight. Recommendation: We recommend the College review and update its policies and procedures to ensure all students are awarded the maximum allowable amount of PELL Grant based on the individual’s enrollment status, cost of attendance and expected family contribution.

Corrective Action Plan

Financial Aid staff will work to ensure the system is set up to omit human error when it comes to awarding Pell Grant funds. The Financial Aid staff will stay up to date with new Pell requirements and changes. All staff would be required to receive training on utilizing the correct formula for calculating Pell Grants. Additionally, staff will compare any new ISIRS received after the verification and award process is completed to ensure there is no change that would need to be made in the amount that the student is eligible to receive.

Categories

Student Financial Aid

Other Findings in this Audit

  • 383756 2022-001
    Material Weakness Repeat
  • 383757 2022-001
    Material Weakness Repeat
  • 383758 2022-001
    Material Weakness Repeat
  • 383759 2022-001
    Material Weakness Repeat
  • 383760 2022-001
    Material Weakness Repeat
  • 383762 2022-002
    Material Weakness
  • 383763 2022-002
    Material Weakness
  • 383764 2022-002
    Material Weakness
  • 383765 2022-002
    Material Weakness
  • 960198 2022-001
    Material Weakness Repeat
  • 960199 2022-001
    Material Weakness Repeat
  • 960200 2022-001
    Material Weakness Repeat
  • 960201 2022-001
    Material Weakness Repeat
  • 960202 2022-001
    Material Weakness Repeat
  • 960203 2022-002
    Material Weakness
  • 960204 2022-002
    Material Weakness
  • 960205 2022-002
    Material Weakness
  • 960206 2022-002
    Material Weakness
  • 960207 2022-002
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.425 Covid-19 Education Stabilization Fund: Heerf - Hbcu Portion $5.24M
84.063 Federal Pell Grant Program $1.41M
84.425 Covid-19 Education Stabilization Fund: Heerf - Institutional Portion $902,538
84.268 Federal Direct Student Loans $873,678
84.425 Covid-19 Education Stabilization Fund: Heerf - Student Portion $708,140
84.031B Title III - Strengthening Institutions $382,492
84.031B Title III - Safra $265,343
84.425 Covid-19 Education Stabilization Fund: Geer Workforce $204,894
84.007 Federal Supplemental Educational Opportunity Grants $181,152
84.425 Covid-19 Education Stabilization Fund: Geer $173,114
84.033 Federal Work-Study Program $110,378
84.048 Career and Technical Education -- Basic Grants to States $52,195
84.047A Trio_upward Bound $8,500
84.031B Title III - Safra (carryover) $6,097
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $2,040