Finding 61450 (2022-002)

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Requirement
E
Questioned Costs
-
Year
2022
Accepted
2023-03-14
Audit: 56687
Organization: East-West University (IL)
Auditor: Sikich LLP

AI Summary

  • Core Issue: Two students received an incorrect Pell Grant amount due to using the wrong Pell chart, resulting in a $150 under award for each.
  • Impacted Requirements: This finding indicates noncompliance with eligibility criteria for Pell Grants as outlined in 34 CFR 690.63.
  • Recommended Follow-Up: The University should enhance monitoring of student enrollment statuses to ensure accurate Pell Grant disbursements moving forward.

Finding Text

2022-002: Incorrect Pell Disbursement - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended August 31, 2022 Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,495 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted two students out of forty were not disbursed the correct Pell Grant. For the students the wrong Pell chart was used resulting in an under award of $150 for each student. We consider these errors to be instance of noncompliance relating to the Eligibility Compliance Requirement. See Schedule of Findings and Questioned Costs for chart/table. Statistical sampling was not used when making sample selections. Questioned Costs: $0 Effect: Two students received an incorrect amount of Pell award and were under awarded an amount of $150 each. Cause: The University?s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education?s Pell matrix chart, the students were under awarded Pell in the amount of $150 each. Recommendation: We recommend the University closely monitor all student?s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

Corrective Action Plan

2022-002: Incorrect Pell Disbursement - Student Financial Aid Cluster Assistance Listing Number 84.007, 84.033, 84.063, 84.268, Grant Period - Year Ended August 31, 2022 Condition: During our student file testing we noted two students out of forty were not disbursed the correct Pell Grant. For the students the wrong Pell chart was used resulting in an under award of $150 for each student. We consider these errors to be instance of noncompliance relating to the Eligibility Compliance Requirement. Corrective Action Plan: East-West University will correct the two students to reflect the correct Pell Grant, in addition we will also be implementing check and balance system to ensure the correct Pell Grant is disbursed. Responsible Person for Corrective Action Plan: The Director of Financial Aid Cesar Campos will be the person for the corrective action plan. Implementation Date of Corrective Action Plan: 02/16/2023

Categories

Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.86M
84.268 Federal Direct Student Loans $1.77M
84.425 Covid-19 Education Stabilization Fund $1.55M
84.268 Federal Direct Student Loans- Plus Loans $365,993
84.007 Federal Supplemental Educational Opportunity Grants $78,665
84.033 Federal Work-Study Programs $31,631