Finding 520757 (2024-001)

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Requirement
E
Questioned Costs
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Year
2024
Accepted
2025-01-30
Audit: 340518
Auditor: Sikich CPA LLC

AI Summary

  • Core Issue: Two students received an incorrect Pell Grant amount due to under awarding by $716.
  • Impacted Requirements: This finding indicates noncompliance with eligibility rules for Pell Grants as outlined in 34 CFR 690.63.
  • Recommended Follow-Up: The College should enhance monitoring of student enrollment statuses to ensure accurate financial aid disbursements.

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 two students out of forty were not disbursed the correct Pell Grant award. Based on the student’s enrollment status and need, the College under awarded the students by $716. 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: $0 Effect: Two students received an incorrect amount of Pell award and were under awarded an amount of $716. Cause: The College’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the students. According to the Department of Education’s Pell matrix chart, the students were under awarded Pell in the amount of $716. 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 two students out of forty were not disbursed the correct Pell Grant award. Based on the student’s enrollment status and need, the College under awarded the students by $716. We consider this to be an instance of noncompliance relating to the Eligibility Compliance Requirement. Corrective Action Plan The Financial Aid Office will implement a more comprehensive process to review schedule and FAFSA change reports to identify any impact on Pell awards for affected students. Responsible Person for Corrective Action Plan Heather Kleekamp, Director of Financial Aid Implementation Date of Corrective Action Plan January 2, 2025

Categories

Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
21.027 Covid-19 Coronavirus State and Local Fiscal Recovery Funds $9.86M
84.268 Federal Direct Student Loans $4.83M
84.063 Federal Pell Grant Program $4.09M
17.268 H-1b Job Training Grants $317,969
84.048 Career and Technical Education -- Basic Grants to States $245,709
20.106 Airport Improvement Program $80,800
84.007 Federal Supplemental Educational Opportunity Grants $55,128
84.033 Federal Work-Study Program $42,207
20.106 Covid-19 Airport Improvement Program $22,000
84.063 Pell Administrative Funding $5,465
39.003 Donation of Federal Surplus Personal Property $393