Finding Text
2023-002 - Disbursements to or on Behalf of Students
U.S. Department of Education
Student Financial Assistance Programs Cluster
Federal Pell Grant Program (ALN 84.063)
Federal Award Year: 2023
Finding: The University did not timely disburse a Pell grant to an eligible student within the payment period.
Criteria: Per 34 CFR 668.164(b)(1), “an institution must disburse during the current payment period the amount of title IV, HEA program funds that a student enrolled at the institution, or the student's parent, is eligible to receive for that payment period.” The payment period is defined as a semester for the University.
Condition: One student had Pell grant funds disbursed after the relevant semester. The correct amount of Pell grant funds was disbursed to the student over the course of the full academic year.
Cause: The student underwent verification which resulted in a delay in disbursements. Verification process was completed within the payment period but a disbursement was not made timely due to the manual process required for this payment.
Effect: Noncompliance with federal regulations over disbursements to students. Repeat findings may cause concern over administrative capability.
Questioned Costs: None.
Context: One out of 25 students with Pell disbursements tested did not have awarded funds disbursed timely.
Repeat Finding: Not applicable.
Recommendation: We recommend the University implement procedures to properly review and ensure timely disbursements to all students, including those with delayed disbursements due to verifications.
Management Response: Management agrees with the finding.