Finding 512636 (2024-001)

-
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-12-02
Audit: 330436
Organization: Lincoln Land Community College (IL)
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: One student was over awarded Pell Grant funds by $925 due to incorrect disbursement based on enrollment status and EFC.
  • Impacted Requirements: This finding indicates noncompliance with 34 CFR 690.63 regarding Pell Grant eligibility and disbursement.
  • Recommended Follow-Up: The College should enhance monitoring of student enrollment statuses to ensure accurate Pell Grant disbursements moving forward.

Finding Text

2024-001 Incorrect Pell Disbursement Amount - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2024 Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $7,395 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted one student out of forty was not disbursed the correct Pell Grant award. Based on the student’s enrollment status and need, the College over awarded the student by $925. We consider this to be an instance of noncompliance relating to the Eligibility Compliance Requirement. Statistical sampling was not used when making sample selections. Questioned Costs: $925 Effect: A student received an incorrect amount of Pell award and was over awarded an amount of $925. Cause: The College’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education’s Pell matrix chart, the student was over awarded Pell in the amount of $925. Recommendation: We recommend the College closely monitor all student’s enrollment status to ensure all students receive financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with this finding and response is included in Corrective Action Plan.

Corrective Action Plan

2024-001 Incorrect Pell Disbursement Amount - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended June 30, 2024 Condition Found During our student file testing we noted one student out of forty had was not disbursed the correct Pell Grant award. Based on the student’s enrollment status and need, the College over awarded the student by $925. We consider this to be an instance of noncompliance relating to the Eligibility Compliance Requirement. Corrective Action Plan This is a manual process and aid is initially reviewed during the awarding process. LLCC is working to create a report to double check aid that has been cancelled for students during an ineligible term. Responsible Person for Corrective Action Plan Alison Mills-Director of Financial Aid Implementation Date of Corrective Action Plan FY25

Categories

Questioned Costs Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 512637 2024-002
    Significant Deficiency Repeat
  • 1089078 2024-001
    -
  • 1089079 2024-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $8.24M
84.268 Federal Direct Student Loans $5.96M
11.307 Economic Adjustment Assistance $858,403
84.048 Career and Technical Education -- Basic Grants to States $519,994
20.112 Aviation Maintenance Technical Workforce Grant Program $441,156
93.575 Child Care and Development Block Grant $310,807
84.042 Trio Student Support Services $261,385
84.007 Federal Supplemental Educational Opportunity Grants $241,250
84.002 Adult Education - Basic Grants to States $89,251
84.335 Child Care Access Means Parents in School $89,190
84.033 Federal Work-Study Program $84,085
10.558 Child and Adult Care Food Program $51,706
14.251 Economic Development Initiative, Community Project Funding, and Miscellaneous Grants $50,793
17.261 Workforce Data Quality Initiative (wdqi) $37,558
84.116 Fund for the Improvement of Postsecondary Education $31,491
20.205 Highway Construction Careers Training Program $23,729
20.235 Commercial Motor Vehicle Operator Safety Training Grants $22,500