Finding Text
Finding 2023-001 – Significant Deficiency: Eligibility – Compliance and Control Finding
ALN 84.063 – Federal Pell Grant Program – Student Financial Aid Cluster
Federal Agency: Department of Education
Pass-Through Entity: None
Criteria Or Specific Requirement: Per the Student Financial Aid Handbook, Volume 3, the University must follow the eligibility guidelines and limits set by the Department of Education for awarding Pell Grants.
Condition: The University did not properly award students in accordance with the guidelines set by the Department of Education.
Cause: Controls over compliance put in place by management were not operating effectively as it relates to awarding and disbursement of Title IV funds due to the implementation of a new student information system in the current year.
Effect: The University’s controls did not prevent the errors noted during the awarding and disbursement of Title IV funds.
Questioned Costs: Known and likely questioned costs did not exceed $25,000.
Context: Based on a sample of 40 students, the University incorrectly awarded Pell grants for 2 students in the amount of $1,105. The sample was non-statistical from a listing of students receiving financial aid.
Identification As A Repeat Finding: Not a repeat finding.
Recommendation: We recommend that management review its processes and controls surrounding this compliance requirement to ensure that the control is appropriate and operating effectively to support that the University is in compliance with the requirements of its federal program.
Views Of Responsible Officials: The University agrees with the finding. The University is implementing a new student information system, which includes controls related to accurately awarding students.