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Finding No. 2022-001 ? Internal Controls over Student Financial Assistance Special Test and Provisions Federal Program Name: Federal Student Assistance Cluster; Federal Pell Grant Program, Federal Direct Student Loans, Federal Supplemental Educational Opportunity, Federal Work Study Program CFDA Number: 84.063, 84.268, 84.007, and 84.033 Federal Agency: U.S. Department of Education Criteria/Specific Requirement: A. The Student Financial Aid Handbook states that if a recipient of Title IV grant or loan funds withdraws from a school after beginning attendance, the school must perform an R2T4 calculation to determine the amount of the Title IV assistance earned by the student. B. The Department of Education issues Pell Grant Payment Schedules prior to the start of each award year. The current year award is taken from the payment schedule based on the estimated family contribution (EFC) and Cost of Attendance (COA). The maximum Pell Grant award for 2021-2022 is $6,495. Condition: A. During compliance testing of ?Special Tests and Provisions ? Return of Funds? we noted that for eight (8) out of twenty five (25) students tested the College utilized the incorrect semester end date for the Spring 2022 semester. B. During the compliance testing of ?Special Tests and Provisions ? Eligibility? we noted that one (1) student out of forty (40) students tested the College utilized the 2020-2021 Pell payment schedule versus the 2021-2022 Pell payment schedule. Questioned Costs: A. None B. None Context: A. Exceptions were noted in eight (8) of the twenty five (25) students tested. B. Exceptions were noted in one (1) of the forty (40) students tested. Effect: A. The amount of funds sent back to the Department of Education could be incorrect. B. The amount of Pell grant awarded to the student was under by $150. Finding No. 2022-001 ? Internal Controls over Student Financial Assistance Special Test and Provisions Cause: A. The College?s internal controls over the Return of Funds calculation were not effective. B. The College?s software system did correctly pull forward the current year Pell payment schedule. Recommendation: A. We recommend that the College develop internal controls to ensure that the correct dates are utilized for the Return of Funds calculation. B. We recommend the College establish procedures to ensure the software is utilizing the correct award information and criteria. Management?s Response: A. The College agrees with the auditor?s recommendation and will develop internal controls to ensure that accurate semester dates are utilized in the return of funds calculation to determine the amount of the Title IV assistance earned by the student. B. The College agrees with the auditor?s recommendation and will establish procedures to ensure the College's software is utilizing the current Pell payment schedule.