Finding 52039 (2022-004)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-02-22
Audit: 50813
Organization: Ashland University (OH)

AI Summary

  • Core Issue: The University lacked a formal policy to ensure correct Pell Grant payments for students whose programs span multiple award years.
  • Impacted Requirements: Compliance with federal regulations requiring proper allocation of Pell Grant funds based on the award year.
  • Recommended Follow-Up: Establish and implement a formal policy, and train staff on the new procedures for awarding Pell Grants.

Finding Text

Finding 2022-004: a. Identification of the federal program and specific federal award: i. Assistance Listing title and number: Student Financial Assistance - Cluster, Federal Pell Grant (Pell) - 84.063 ii. Federal award identification number and year: P063P210331, 2021 - 2022 Federal Award Year iii. Name of federal agency: U.S. Department of Education iv. Name of the applicable pass-through entity: Not applicable b. Criteria or specific requirement (including statutory, regulatory or other citation): If a student enrolls in a payment period that is scheduled to occur in two award years, the entire payment period must be considered to occur within one award year. The institution must determine for each Federal Pell Grant (Pell) recipient the award year in which the payment period will be placed. If an institution places the payment period in the first award year, it must pay a student with funds from the first award year, and if an institution places the payment period in the second award year, it must pay a student with funds from the second award year. An institution may not make a payment that will result in the student receiving more than 1 ? of his or her scheduled Federal Pell Grant for an award year in accordance with the requirements of 34 C.F.R. ? 690.64(a), (b). c. Condition: The University did not have an established policy and procedure to ensure that it consistently applied the regulations regarding payments of Pell if a student?s program crossed over an award year. d. Cause: The University did not have a formal policy or procedure. e. Effect or potential effect: The University could incorrectly apply the payment rules for student receiving Pell funds. f. Questioned costs: There are no questioned costs associated with this finding. g. Context: Historically, the University has handled this process on a student-by-student basis manually without a formal policy. The University was in the process of formalizing this practice and making certain enhancements to its tracking with its accounting system, but it was not completed until after the 2021-2022 federal award year. h. Identification as a repeat finding, if applicable: This is not a repeat finding. i. Recommendation: We recommend the University establish a formal policy and procedure and ensure that all personnel responsible for the awarding of Pell are trained on how to appropriately follow the policy. j. Views of responsible officials: Management concurs with the finding. In April 2022, a formal policy and procedures addressing the awarding of Pell Grants has been established to ensure compliance, including staff training.

Corrective Action Plan

Student Financial Assistance - Cluster - Federal Pell Grant Program; Award ID No. P063P210331, 2021 - 2022 Federal Award Year Identifying Number: 2022-004 Audit Finding: The University did not have an established policy and procedure to ensure that the University consistently applied the regulations regarding payments of Pell if a student?s program crossed over an award year. Corrective Actions Taken or Planned: Management concurs with the finding. In April 2022 a formal policy and procedures addressing the awarding of the Pell Grant has been established to ensure compliance including staff training.

Categories

Student Financial Aid Subrecipient Monitoring

Other Findings in this Audit

  • 52037 2022-002
    Material Weakness
  • 52038 2022-003
    Significant Deficiency
  • 52040 2022-005
    Significant Deficiency
  • 628479 2022-002
    Material Weakness
  • 628480 2022-003
    Significant Deficiency
  • 628481 2022-004
    Significant Deficiency
  • 628482 2022-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $20.43M
84.063 Federal Pell Grant Program $12.89M
84.425 Covid-19 - Education Stabilization Fund $8.26M
84.038 Perkins Loan Program $1.07M
84.007 Federal Supplemental Educational Opportunity Grants $682,775
93.264 Nurse Faculty Loan Program (nflp) $528,744
84.033 Federal Work-Study Program $455,498
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $82,118
47.076 Education and Human Resources $79,338
93.867 Vision Research $69,212
84.425 Covid-19-Education Stabilization Fund $52,795
47.074 Biological Sciences $45,898
59.037 Small Business Development Centers $37,490
81.049 Office of Science Financial Assistance Program $31,009
21.019 Covid-19-Coronavirus Relief Fund $9,425