Finding Text
U.S. Department of Education
Assistance Listing Number 84.063
Pell Disbursement Process
Condition -
During the audit, it was identified that 3 out of 19 sampled students were not disbursed the correct PELL award. The sample was not statistically valid.
Criteria -
According to federal regulations, institutions are required to calculate and disburse PELL Grant award to eligible students based on their Expected Family Contribution (EFC) and enrollment status (i.e., number of credit hours registered).
Cause -
A system error resulted in the locking of student accounts, which prevented the automated update of disbursements when students' registration status changed.
Effect -
The College did not properly disburse PELL awards, resulting in either an under or over award to the affected students.
Recommendation -
We recommend that the College provide training for staff on identifying and resolving registration changes impacting PELL disbursements and enhance monitoring controls to ensure timely and accurate adjustments to students’ disbursements in compliance with federal requirements.
Views of Responsible Officials -
The College is dedicated to awarding and disbursing all federal awards timely and accurately. A system error resulted in the locking of Pell grant awards which prevented the automated updates of award amounts when students’ registered credits changed.
The College has implemented training to all Financial Aid team who award students to not lock any federal aid awards with the system. When reviewing and disbursing there will also be a specific check for locked awards to prevent this going forward.