Finding Text
Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($956,966) Award Number: P063P233629 Federal Award Year: July 1, 2023 to June 30, 2024 Questioned Costs: $660 Condition Found: The R2T4 calculation was completed incorrectly for two of the fourteen R2T4s reviewed during our audit. All of the R2T4s completed by College during the year ended June 30, 2024 were reviewed during the audit. For one student, the number of days in the semester used in the calculation was incorrect. For the second student, the amount of Pell awarded and used in the calculation was incorrect. Criteria: For the first student, the total number of days in the semester for the purposes of the R2T4 calculation is the sum of the start and end dates noted in the academic calendar less any scheduled breaks of five days or more. For the second student, the amount awarded in Pell Grant funds is based on the student’s expected family contribution (“EFC”), the number of credit hours the student is enrolled in, and the student’s cost of attendance. In addition, if a student is enrolled in module courses, the Pell grant funds awarded must be adjusted for modules that the student did not begin. Cause: For the first student, the Director of Financial Aid miscalculated the number of days in the semester. The incorrect date was used for the last date of the semester. This was a typing error when entering the data to calculate the R2T4. There were two Pell errors for the second student. The incorrect amount of Pell was awarded based on the student’s EFC, enrollment status, and cost of attendance. In addition, Pell Grant funds awarded were not adjusted for one module that the student did not begin attendance. Possible Asserted Effect: The R2T4 calculations were completed incorrectly. For the first student, an additional $558 of Federal Pell Grant funds should be returned to the Department of Education. The second student was eligible to receive an additional $102 of Federal Pell Grant funds. Repeat Finding: There was not a similar finding in the prior year. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director and auditor worked together to determine the number of days that were in the semester for the first student and the amount of Federal Pell Grant funds the second student was eligible to receive. The R2T4s were recalculated for the students in question. On October 24, 2024, $558 of Federal Pell Grant funds were returned to the Department of Education for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question. In addition, we recommend completing the free R2T4 training track provided by the Department of Education at https://fsatraining.ed.gov/. This site is also a great resource for free live webinars and self-paced courses on various student financial aid topics. Management Response: Management agrees with the auditors’ finding and their recommendation. $558 of Federal Pell Grant funds were returned for the first student in question and $102 of Federal Pell Grant funds were awarded to the second student in question on October 24, 2024.