FAC Explorer

Finding 524208 (2024-005)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-02-21
Audit: 343397
Organization: Montcalm Community College (MI)
Auditor: Rehmann Robson LLC

AI Summary

  • Core Issue: One student was under awarded a Pell Grant due to errors in calculating their Cost of Attendance (COA) and Expected Family Contribution (EFC).
  • Impacted Requirements: The College must follow the Uniform Guidance for determining Pell Grant awards based on accurate COA and EFC data.
  • Recommended Follow-Up: Implement a review process for COA and EFC calculations each academic year, overseen by an independent official.

Finding Text

2024-005 – Pell Grant Calculation. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Eligibility). Programs. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Number 84.063; Award Numbers P063P231644 and P063Q231644. Criteria. The Uniform Guidance states that the College must determine the maximum scheduled award a student would receive based on their Expected Family Contribution (EFC) and Cost of Attendance (COA) using the payment schedule provided by the U.S. Department of Education. Students must be awarded on the basis of a COA comprised of allowable costs assessed to all students carrying the same academic workload. COA must be prorated for students who are attending less than an academic year, or who are less than full‐time in a term based program. Condition. One student out of the twenty five Pell grants tested was found to be under awarded based on the enrollment status and cost of attendance. Cause. This condition was caused by insufficient review of the COA and EFC data being used by the College in determining the Pell Grant amount for students. Effect. As a result of this condition, the College was exposed to an increased risk that incorrect information would be used to determine students' Pell Grant award amounts. Questioned Costs. No costs are required to be questioned as the amounts did not exceed the reporting threshold. Recommendation. We recommend the College implement procedures to ensure the COA and EFC used to calculate each student's Pell Grant is updated for each academic year and reviewed by an independent official. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Corrective Action Plan

2024-005 – Pell Grant Calculation. Auditor Description of Condition and Effect. One student out of the twenty five Pell grants tested was found to be under awarded based on the enrollment status and cost of attendance. As a result of this condition, the College was exposed to an increased risk that incorrect information would be used to determine students' Pell Grant award amounts. Auditor Recommendation. We recommend the College implement procedures to ensure the COA and EFC used to calculate each student's Pell Grant is updated for each academic year and reviewed by an independent official. Corrective Action. This is corrected on setup and noted to correct the COA. Responsible Party. Financial Aid Director, Jennifer Stimson. Anticipated Completion Date. March 2025 - next set up, it was corrected for 24/25 academic year in May 2024.

Categories

Student Financial Aid Allowable Costs / Cost Principles Eligibility Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 524193 2024-002
    Significant Deficiency
  • 524194 2024-002
    Significant Deficiency
  • 524195 2024-002
    Significant Deficiency
  • 524196 2024-002
    Significant Deficiency
  • 524197 2024-002
    Significant Deficiency
  • 524198 2024-003
    Significant Deficiency
  • 524199 2024-003
    Significant Deficiency
  • 524200 2024-003
    Significant Deficiency
  • 524201 2024-003
    Significant Deficiency
  • 524202 2024-003
    Significant Deficiency
  • 524203 2024-004
    Significant Deficiency
  • 524204 2024-004
    Significant Deficiency
  • 524205 2024-004
    Significant Deficiency
  • 524206 2024-004
    Significant Deficiency
  • 524207 2024-004
    Significant Deficiency
  • 524209 2024-005
    Significant Deficiency
  • 524210 2024-006
    Significant Deficiency
  • 524211 2024-006
    Significant Deficiency
  • 524212 2024-006
    Significant Deficiency
  • 524213 2024-007
    Significant Deficiency
  • 524214 2024-007
    Significant Deficiency
  • 524215 2024-007
    Significant Deficiency
  • 1100635 2024-002
    Significant Deficiency
  • 1100636 2024-002
    Significant Deficiency
  • 1100637 2024-002
    Significant Deficiency
  • 1100638 2024-002
    Significant Deficiency
  • 1100639 2024-002
    Significant Deficiency
  • 1100640 2024-003
    Significant Deficiency
  • 1100641 2024-003
    Significant Deficiency
  • 1100642 2024-003
    Significant Deficiency
  • 1100643 2024-003
    Significant Deficiency
  • 1100644 2024-003
    Significant Deficiency
  • 1100645 2024-004
    Significant Deficiency
  • 1100646 2024-004
    Significant Deficiency
  • 1100647 2024-004
    Significant Deficiency
  • 1100648 2024-004
    Significant Deficiency
  • 1100649 2024-004
    Significant Deficiency
  • 1100650 2024-005
    Significant Deficiency
  • 1100651 2024-005
    Significant Deficiency
  • 1100652 2024-006
    Significant Deficiency
  • 1100653 2024-006
    Significant Deficiency
  • 1100654 2024-006
    Significant Deficiency
  • 1100655 2024-007
    Significant Deficiency
  • 1100656 2024-007
    Significant Deficiency
  • 1100657 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.19M
21.027 Coronavirus State and Local Fiscal Recovery Funds $436,167
84.048 Career and Technical Education -- Basic Grants to States $107,369
17.268 H-1b Job Training Grants $84,212
84.007 Federal Supplemental Educational Opportunity Grants $63,260
84.033 Federal Work-Study Program $23,924
84.063 Federal Pell Grant Program $3,080