Finding Text
Compliance Finding and Significant Deficiency 2022-002 U.S. Department of Education Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.033, 84.063 & 84.268 Award Year: 2021-2022 2022-002 Eligibility Criteria: In accordance with 34 CFR 668.32(e), for a student to be deemed eligible for Pell funding, they must have a high school diploma, its recognized equivalent, or another indication of high school completion status, or qualifies for one of the ability-to-benefit alternatives. Condition: The College disbursed Pell funds to a student that was not deemed eligible. Context: A sample of 40 students revealed that one student received Pell funding without showing eligibility in regards to having a high school diploma, its recognized equivalent, or another indication of high school completion status, or qualifies for one of the ability-to-benefit alternatives. Effect: Pell funds were disbursed to one ineligible student. Cause: The College did not have specific procedures in place to ensure all students had a high school diploma, its recognized equivalent, or another indication of high school completion status, or qualifies for one of the ability-to-benefit alternatives prior to disbursing Pell funds. Questioned costs: $537 of Pell funding (ALN 84.063) was received during the Fall 2021 semester before becoming eligible during the Spring 2022 semester. This is below the known and likely questioned costs reporting threshold. Recommendation: We recommend the College implement procedures to strictly comply with the requirements of 34 CFR 668.32 as it relates to student eligibility. Response: The College's Financial Aid Office has implemented new procedures. When final high school transcripts come in during a semester, the Office will add a step to review the actual graduation date to make sure that the College is not paying a student for an ineligible semester.