Finding 504266 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2024-10-31
Audit: 326792
Organization: Lewis-Clark State College (ID)

AI Summary

  • Core Issue: The College under-awarded Pell Grant funds to a student due to a lack of necessary manual adjustments.
  • Impacted Requirements: Compliance with federal regulations for Pell Grant disbursement, specifically regarding enrollment status and cost of attendance.
  • Recommended Follow-Up: Review and update procedures for awarding Title IV funds to ensure proper compliance with federal regulations.

Finding Text

Criteria or Specific Requirement: The amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year (34 CFR 690.62) The Code of Federal Regulations (34 CFR 690.80(b)(1)) states if the student’s enrollment status changes from one academic term to another 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. Uniform Grant Guidance (2 CFR 200.303) requires nonfederal entities receiving Federal awards establish and maintain internal controls designed to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures to ensure students are awarded and disbursed the proper federal fund amounts. Condition: The College under-awarded funds for the Pell Grant. Questioned Costs: None. Context: During our testing we noted one of forty students, from a statistically valid sample, were disbursed awarded and disbursed less Pell funds than should have been awarded based on the 23-24 Pell payment schedule. The Pell payment schedule considers the cost of attendance, the student's Expected Family Contribution and the enrollment status of the student. Cause: The College did not award the correct amount of the Pell grant due to the lack of a manual adjustment that was needed for this instance. Effect: Failure to properly determine and disburse Title IV funds based on eligibility for each type of aid in accordance with federal regulations may result in students receiving incorrect funds. Repeat Finding: No. Recommendation: We recommend the College review its current procedures for awarding Title IV funds and implement any changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.

Corrective Action Plan

Student Financial Aid Cluster: Federal Pell Grant Program – Assistance Listing 84.038 Recommendation: We recommend the College review its current procedures for awarding Title IV funds and implement any changes necessary to ensure federal funds are awarded and disbursed in accordance with federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The finding was isolated to less-than-half-time Pell recipients. These recipients will be processed through the auto-packing process and then will undergo a secondary manual review prior to disbursement. Name(s) of the contact person(s) responsible for corrective action: Laura Hughes and John Bender Planned completion date for corrective action plan: Immediate Implementation

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties Eligibility

Other Findings in this Audit

  • 504260 2024-001
    Significant Deficiency Repeat
  • 504261 2024-001
    Significant Deficiency Repeat
  • 504262 2024-001
    Significant Deficiency Repeat
  • 504263 2024-001
    Significant Deficiency Repeat
  • 504264 2024-001
    Significant Deficiency Repeat
  • 504265 2024-001
    Significant Deficiency Repeat
  • 1080702 2024-001
    Significant Deficiency Repeat
  • 1080703 2024-001
    Significant Deficiency Repeat
  • 1080704 2024-001
    Significant Deficiency Repeat
  • 1080705 2024-001
    Significant Deficiency Repeat
  • 1080706 2024-001
    Significant Deficiency Repeat
  • 1080707 2024-001
    Significant Deficiency Repeat
  • 1080708 2024-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $7.65M
84.063 Federal Pell Grant Program $5.04M
84.149 College Assistance Migrant Program $426,072
93.364 Nursing Student Loans $349,545
84.044 Trio - Talent Search $313,699
84.048 Career and Technical Education - Basic Grants to States $156,280
93.859 R-16 Dna Replication $155,045
84.007 Federal Supplemental Educational Opportunity Grants $96,750
84.038 Federal Perkins Loan Program $84,105
93.658 Foster Care - Title IV-E $76,124
84.033 Federal Work Study Program $70,549
93.859 Biomedical Research and Research Training $65,940
84.335 Childcare Access Means Parents in School $61,495
93.323 Epidemiology & Laboratory Capacity for Prevention & Control of Emerging Infectious Diseases $56,362
84.002 Adult Education - Basic Grants to States $27,417
93.113 Air Toxics Monitoring $27,026
17.268 Closing the Skills Gap $20,649
10.351 Usda Rdgb-Cnc Lab Tooling $14,112
84.379 Teacher Education Assistance for College and Higher Education Grants $13,202
93.575 Child Care and Development Block Grant - Idaho Child Care Emergency Grant $12,340
84.048 Career and Technical Education-Basic Grants to States $8,061
45.025 Promotion of the Arts Partnership Agreements $6,261
45.129 Promotion of the Humanities - Federal/state Partnership $3,000
11.307 Economic Adjustment Assistance $1,115
59.037 Small Business Development Centers $-6,683