Finding Text
2023-007: Eligibility – Pell Awarding
Federal Agency:
Department of Education
Federal Program Title:
Student Financial Aid Cluster
Assistance Listing Number:
84.063
Award Number and Year:
P063P213807(March 23, 2021 - August 31, 2027)
Award Period:
July 1, 2022 – June 30, 2023
Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters
Criteria or Specific Requirement: Internal Control – Per 2 CFR section 200.303(a), a non-Federal entity must: Establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in “Standards for Internal Control in the Federal Government” issued by the Comptroller General of the United States or the “Internal Control Integrated Framework”, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Compliance- 34 CFR 668.60(c), the institution shall adjust the student's award when an over award or under award is caused by the change in the expected family contribution. That adjustment must be made—
(i) Within the same award year—if possible—to correct any overpayment or underpayment; or
(ii) During the next award year to correct any overpayment that could not be adjusted during the year in which the student was overpaid.
Condition: Students were disbursed Pell funds inaccurately.
Questioned Costs: $1,722
Context: During our audit procedures, it was noted that one (1) of ten (10) students tested, the Pell amount disbursed was less than what the student was eligible to receive.
Cause: The University experienced turnover in the department responsible for this process. The University does not have any records or notifications on file of the classes being adjusted resulting in a change in eligibility status.
Effect: Students are not disbursed correct funds they are eligible to receive during the school year.
Repeat Finding: Yes – 2022-008.
Recommendation: We recommend the University implement policies to review all student award packages at the start of the academic year to ensure no over and under awards exist.
Views of Responsible Officials: There is no disagreement with the audit finding.