Finding 400118 (2023-002)

Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Internal Control and Compliance Internal Control Impact: Significant Deficiency Compliance Impact: Nonmaterial Noncompliance ALN Number and Title: Student Financial Assistance Cluster 84.007 – Federal Supplemental Educational Opportunity Grants 84.033 – Federal Work-Study Program 84.063 – Federal Pell Grants 84.268 – Federal Direct Student Loans 93.925 – Scholarships for Health Professions Students from Disadvantaged Backgrounds Federal Awarding Agency: U.S. Department of Education Federal Award Numbers: P007A220046 P033A220406 P063P221041 P268K231041 5 T08HP39331-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $1,724.00 The University failed to properly calculate Title IV disbursements. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Forty student records were selected from the population of 1,716 Federal Pell Grant student records for the financial aid award year for testing compliance with Title IV student eligibility requirements. Audit tests performed determined the University failed to properly calculate or recalculate the Federal Pell Grant award based on enrollment or change in enrollment status, as required, for one student. The student was awarded a Pell Grant for full-time enrollment but should have only been half-time enrollment, resulting in a Federal Pell Grant over award of $1,724.00. Recommendation The University should recalculate Federal Pell Grant awards in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions.