Finding Text
2022-002 Eligibility Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster ALN Numbers: Various Award Period: July 1, 2021 through June 30, 2022 Type of Finding: ?Significant Deficiency in Internal Control Over Compliance ?Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 690.62, states the amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. In addition, the Code of Federal Regulations, 34 CFR 686.11, states to be eligible for a TEACH grant, a student beyond the first year of an undergraduate program must have a cumulative GPA of at least 3.25. Lastly, the Code of Federal Regulations, 34 CFR 682.604 states a school must ensure that exit counseling is conducted with each direct loan borrower within 30 days after learning the student borrower has withdrawn from school. Condition: During our testing, we noted for 1 out of 40 students tested, they were over awarded and over disbursed Pell grant funds. In addition, for 1 out of 40 students tested, we noted they were not meeting the minimum GPA requirements to be eligible for a TEACH grant. Furthermore, 2 out of 40 students did not receive their exit counseling timely. Questioned Costs: $6,000 Context: During our testing, it was noted an erroneous computation of the student?s eligibility resulted in a Pell grant over award. It was noted all the eligibility requirements were not reviewed for TEACH grants. Lastly, exit counseling was not done timely. Cause: The University did not have procedures in place to detect these eligibility issues. Effect: The University is not in compliance with Department of Education requirements. Repeat Finding: No Recommendation: We recommend the University review their procedures surrounding eligibility and exit counseling to ensure all students are receiving federal aid they are eligible for as well as being sent exit counseling timely upon leaving the University. Views of Responsible Officials: There is no disagreement with the audit finding