FAC Explorer

Finding 41580 (2022-001)

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Requirement
E
Questioned Costs
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Year
2022
Accepted
2023-06-23
Audit: 51547
Organization: Los Angeles Chapter National Tooling & MacHining Association Training Centers Trust (CA)
Auditor: Vanrijn & Associates PC

AI Summary

  • Core Issue: The school incorrectly calculated and disbursed a Federal Pell Grant amount, not aligning with the required Pell Chart based on the student's Expected Family Contribution.
  • Impacted Requirements: Compliance with 34 CFR 690.62, which mandates accurate eligibility determination and disbursement calculations for Federal Pell Grants.
  • Recommended Follow-Up: Implement new procedures to ensure accurate calculations and compliance with federal regulations to prevent future errors.

Finding Text

Finding 2022-001 Packaging and Disbursing Pell Grant Noncompliance Criteria: A school must determine and calculate a student?s eligibility for a Federal Pell Grant during a payment period. To calculate the Federal Pell Grant award the school must use the payment and disbursement schedules published by the Secretary for each award year as per 34 CFR 690.62. Statement of Condition: The Federal Pell Grant amount disbursed does not match the Pell Chart based on the student?s Expected Family Contribution from the valid ISIR. Cause: The institution inadvertently used the wrong Pell Amount. Effect: In one (1) of forty-nine (49) original student files selected with a Federal Pell Grant disbursement, the Institution made a disbursement of Federal Pell Grant funds that was not calculated based upon the valid ISIR/Expected Family Contribution nor under the Federal Pell Grant Payment Schedule. Description of nature and extent of the issues reported: The sample student?s Federal Pell Grant fund was calculated, awarded, and disbursed inaccurately. Questioned cost: See Chart Recommendation: The Institution should set up procedures to prevent future incidences and ensure compliance with 34 CFR 690.62. Views of Responsible Officials: Los Angeles Chapter National Tooling & Machining Association Training Center Trust dba NTMA Training Centers acknowledges this finding and will apply the recommendation.

Corrective Action Plan

2022-001 - Non-compliance Specific steps to be taken to correct the situation (including a timetable for performance of the CAP) or reason why corrective action is not necessary (including disagreement with the finding): NTMA has recently adopted a new student financial management system that will assist in determining correct calculated awards and is a State of the art financial aid packing system. We are retiring Transcripts, a very antiquated system that was not set up to provide the error free outcomes required. Jenzabar Financial Aid, our new SMS, enacts group processing and direct data imports from the DoE, manages funds to and from the COD system. Flexibility to award using federal and institutional methodologies, automates COA calculations etc.. Jenzabar is a Financial Aid System built by financial aid people. It was set up in manner that is meant to be more compliant and more robust streamline process. It has automated the entire financial aid process. In addition, we are also considering the use of a servicer and requiring financial aid staff to take an additional continuing education and they will be attending virtual workshops that the DoE offers each year.

Categories

Student Financial Aid Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $809,879
84.063 Federal Pell Grant Program $594,264