Finding 524815 (2024-007)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-02-27
Audit: 344201

AI Summary

  • Core Issue: The College incorrectly awarded Pell grant funds to 2 out of 40 students due to failure in adjusting for enrollment status changes.
  • Impacted Requirements: Compliance with federal regulations (34 CFR part 690.63) regarding Pell grant calculations based on enrollment status.
  • Recommended Follow-Up: Strengthen policies and procedures for awarding financial aid to ensure adherence to federal requirements.

Finding Text

(Significant Deficiency and Noncompliance) Information on the federal program: U.S. Department of Education Student Financial Aid Cluster Criteria: The College is required to comply with individual program requirements when awarding a student a financial aid package. Federal Pell grants should be calculated in accordance with 34 CFR part 690.63 using the Pell Grant payment schedule and the student’s enrollment status of fulltime, three-quarters time, half-time, or less than half-time. Condition: We tested 40 students for compliance with proper awarding. Out of those 40 tested, 2 students were incorrectly awarded Pell grant funds; 1 student was over awarded and 1 student was under awarded Pell grant funds. Cause: The College did not correctly adjust the amount of Pell grant funds awarded for the semester resulting from an enrollment status change. One student was over awarded $925 and one student was under awarded $925. Effect: The College did not adjust student financial aid packages when these students’ enrollment status changed. Questioned costs: Amounts noted above offset. Recommendation: We recommend the College strengthen its policies and procedures surrounding the packaging and awarding process to ensure compliance with federal requirements. Views of Responsible Officials: See Management’s View and Corrective Action Plan included at the end of the report.

Corrective Action Plan

Management’s View and Corrective Action Plan: Management concurs with the above finding, and it has been corrected. In the case of A01441826, when the student’s enrollment was captured for Title IV eligibility (02/01), the student was enrolled in 10 credit hours. The student’s 3 credit hour CIS 146 class was deleted on 02/21 and Financial Aid was unaware. This caused the overpayment. In the case of A01454524, enrollment was captured for Title IV eligibility (02/01), the student was enrolled in 13 credit hours, but only 10 of those were in the student’s program of study. The student made an adjustment to their schedule and dropped the class that was out of program and picked up a class in program. This adjustment was not caught by Financial Aid. There is a report in ARGOS to assist with catching the multiple schedule changes. Moving forward there will be more than one person reviewing this report on a bi-weekly basis at a minimum. This report will be saved, and notes will be added so that it will be available to auditors moving forward. Corrective action will be implemented by April of 2025.

Categories

Student Financial Aid Significant Deficiency

Other Findings in this Audit

  • 524816 2024-007
    Significant Deficiency
  • 524817 2024-007
    Significant Deficiency
  • 524818 2024-007
    Significant Deficiency
  • 1101257 2024-007
    Significant Deficiency
  • 1101258 2024-007
    Significant Deficiency
  • 1101259 2024-007
    Significant Deficiency
  • 1101260 2024-007
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $15.24M
84.268 Federal Direct Student Loans $11.53M
84.047 Trio Upward Bound $1.26M
84.042 Trio Student Support Services $989,149
84.044 Trio Talent Search $752,155
84.002 Adult Education - Basic Grants to States $479,003
84.048 Career and Technical Education -- Basic Grants to States $381,461
84.033 Federal Work-Study Program $246,591
84.007 Federal Supplemental Educational Opportunity Grants $185,750
84.425 Education Stabilization Fund $155,083
47.076 Stem Education (formerly Education and Human Resources) $39