Finding Text
Finding number: 2023-002
Federal agency: U.S. Department of Education
Programs: Federal Pell Grants
AL #’s: 84.063
Award year: 2023
Criteria
According to 34 CFR 690.62(a):
Calculation of a Federal Pell Grant: 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.
According to 34 CFR 690.2(c):
Annual award: The Federal Pell Grant award amount a full-time student would receive
under the payment schedule for a full academic year in an award year, and the amount a
three-quarter time, half-time, and less-than-half-time student would receive under the
appropriate disbursement schedule for being enrolled in that enrollment status for a full
academic year in an award year.
Disbursement Schedule: A table showing the annual awards that full-time, three-quarter,
half-time, and less-than-half-time students at term-based institutions using credit hours
would receive for an academic year. This table is published annually by the Secretary and
is based on:
(1) A student's expected family contribution, as determined in accordance with
Title IV, Part F of the HEA; and
(2) A student's attendance costs as defined in Title IV, Part F of the HEA.
(3) The amount of funds available for making Federal Pell Grants.
Condition
Federal regulations require institutions to award Federal Pell Grants in accordance with the
appropriate disbursement schedule for full-time, three-quarter, half-time, and less-than-half-time
students based on the students’ estimated financial contribution and cost of attendance. During our
testing, we noted 1 student, out of a sample of 19, that were not awarded the proper amount of Pell
Grant funds.Cause
The Academy did not use the students’ correct Pell disbursement schedule when awarding the
student Pell Grant funds.
Effect
By using the incorrect schedule, the student was under awarded Federal Pell Grant funds.
Questioned Costs
$400
Perspective
Our sample was not, and was not intended to be, statistically valid. Of the 19 students selected for
testing, 1 student, or 5% of our sample, was under-awarded Pell Grant funds.
Identification as a Repeat Finding, if applicable
Not applicable
Recommendation
We recommend that management of the Academy review, and if necessary, update, the policies,
and procedures for awarding aid and ensuring cost of attendances are correct to ensure Federal Pell
Grant award amounts are properly calculated. Additionally, financial aid awards should be
reviewed by management prior to disbursing funds to students.
View of Responsible Officials
The Academy agrees with the finding.