Finding Text
Finding number: 2023-003
Federal agency: U.S. Department of Education
Programs: Federal Pell Grants
Assistance listing #: 84.063
Award year: 2023
Compliance requirement: Eligibility
Criteria
According to 34 CFR 690.80(b) Recalculation of a Federal Pell Grant award:
(b) Change in enrollment status.
(1) If the student's enrollment status changes 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 taking into account any changes in the cost of attendance.
(2) (i) If the student's projected enrollment status changes during a payment period after the student has begun attendance in all of his or her classes for that payment period, the institution may (but is not required to) establish a policy under which the student's award for the payment period is recalculated. Any such recalculations must take into account any changes in the cost of attendance. If such a policy is established, it must apply to all students.
(ii) 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.
Condition
The Federal Government requires Pell Grant awards to be recalculated when a student fails to begin attendance in each of their scheduled courses which causes a change in the student’s enrollment status. During our testing, we noted 1 student, out of a sample of 40, whose Pell Grant award was not recalculated after their enrollment status changed. Our sample was not, and was not intended to be, statistically valid.
Cause
The College did not have adequate internal controls in place to identify the change in the student’s enrollment status for recalculation of Pell award. As a result, the College did not properly recalculate the student’s Pell Grant award.
Effect
The College over-awarded Pell Grant funds.
Questioned Costs
$863
Identification as a Repeat Finding, if applicable
Not applicable.
Recommendation
The College should update their procedures for identifying status changes due to student’s failure to begin attendance in all scheduled courses. These procedures should include a timeline for reporting students who fail to begin attendance by faculty that will allow for the timely recalculation of Pell Grant awards. The importance of accurate and timely reporting of attendance should be emphasized to the faculty.
View of Responsible Officials
The College agrees with the finding.