Finding Text
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 690.62 states the Pell grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. The payment schedules take into account the cost of attendance, the student’s Estimated Family Contribution (EFC) and the enrollment status of the student. In addition, 2 CFR 200.303, nonfederal entities receiving federal awards are required to establish and maintain internal controls designed to reasonably ensure compliance with federal laws, regulations and program compliance requirements.
Condition: The District awarded an incorrect Pell award amount for this student one out of the 40 students tested, which is a statistically valid sample.
Questioned costs: $2,185
Context: The District awarded $10,538,170 in Pell Grant during the year.
Cause: The overpayment of Pell Grant was due to the District not using information updated by the student for EFC.
Effect: One student was over-awarded Pell Grant funds.
Repeat Finding: This is not a repeat finding.
Recommendation: We recommend that the District implements a process that will ensure all Title IV funds are awarded at proper amounts.
Views of responsible officials: Management concurs with the finding.