Finding 580755 (2023-003)

Material Weakness
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2023-12-14
Audit: 6701
Organization: Mount Marty University (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Two students eligible for the Federal Pell Grant were not awarded assistance due to errors in monitoring.
  • Impacted Requirements: Compliance with 34 CFR 690 regarding student eligibility for the Pell Grant was not met.
  • Recommended Follow-Up: Management should review and improve procedures for monitoring Pell eligibility to prevent future errors.

Finding Text

Student Financial Assistance Program Cluster – Department of Education Federal Financial Assistance Listing #84.063 Federal Pell Grant Program (PELL) P063P202209, P063P212209, P063P222209 Eligibility Material Weakness in Internal Control over Compliance Criteria: 34 CFR 690 contains requirements that apply to student eligibility over the Federal Pell Grant Program. Condition: Two instances identified in which the student was eligible to receive Federal Pell assistance but was not awarded the assistance. Cause: The report used by the Financial Aid Office to monitor Pell eligibility in the summer was ran incorrectly resulting in a Pell-eligible student being improperly excluded from the report. Additionally, Pell eligibility was not monitored for a student during the 75-day requirement to satisfy an incomplete grade. Effect: Two students were under awarded Pell aid. Questioned Costs: $1,355 in assistance was not awarded that should have been. Context/Sampling: A non-statistical sample of 60 of the University’s 658 students receiving student financial assistance was selected for testing. The sample resulted in testing $644,190 out of $13,239,499 in federal financial assistance. Repeat Finding from Prior Years: No Recommendation: We recommend that management review procedures and control processes over monitoring of Pell eligibility. Views of Responsible Officials: Management agrees with the finding.

Categories

Questioned Costs Student Financial Aid Subrecipient Monitoring Internal Control / Segregation of Duties Eligibility Material Weakness

Other Findings in this Audit

  • 4313 2023-003
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.54M
84.063 Federal Pell Grant Program $1.17M
93.364 Nursing Student Loans $814,079
84.038 Federal Perkins Loans $407,961
84.033 Federal Work-Study Program $161,409
97.008 Non-Profit Security Program $133,032
84.007 Federal Supplemental Educational Opportunity Grants $126,947
93.859 Biomedical Research and Research Training $114,793
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $20,746
93.912 Rural Health Care Services Outreach, Rural Health Network Development and Small Health Care Provider Quality Improvement $8,950