Finding Text
Identification of Federal Program(s) – Federal Supplemental Educational Opportunity Grants (ALN 84.007)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation) – The Federal Supplemental Educational Opportunity Grant (“FSEOG”) program provides grants to eligible undergraduate students. Priority is given to Federal Pell Grant recipients who have the lowest expected family contributions (34 CFR 676.10).
Condition – During our eligibility testing, we noted that priority was not given to Pell recipients when disbursing FSEOG awards.
Cause – Insufficient internal controls and administrative oversight with respect to giving priority to Pell recipients when disbursing FSEOG Awards.
Effect or Potential Effect¬ – The University did not give priority to Federal Pell Grant (“Pell”) recipients with the lowest expected family contributions when disbursing FSEOG awards.
Questioned Costs – Below reporting threshold.
Context – We examined the University’s awards disbursement detail noting that all Pell recipients did not receive FSEOG awards. In addition, we identified 5 FSEOG recipients who were not Pell recipients.
Identification of Repeat Finding – No similar findings noted in the prior year.
Recommendation¬¬ – We recommend that the University enhance its internal controls, policies, and procedures to ensure priority is given to Pell recipients when disbursing FSEOG awards.
Views of Responsible Officials – The University concurs with the finding. In selecting among eligible students for FSEOG in each award year, the office of Financial Aid will select first those students with the lowest expected family contribution and the highest need who also received Federal Pell Grants in that year. Management will implement and document an internal audit review. A monthly reconciliation will be completed to ensure Pell recipients are awarded FSEOG, based on the guidance provided by the Federal handbook