Finding Text
2022-004 Significant Deficiency: Awarding Eligibility (Federal Pell Grant Program, ALN #84.063) Criteria: In accordance with 34 CFR 690.62, 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, factoring in student enrollment status, cost of attendance, and expected family contribution. Statement of Condition: During the 2022 audit, it was noted that students were disbursed the incorrect amount of Federal Pell based upon enrollment states, cost of attendance, and expected family contribution. Questioned Costs: This finding is monetary in nature. In the instances noted in testing, the total error identified is $1,142 in over-award. In extrapolating the error across the population of students who received Pell awards, potential error amounts to $43,262. Perspective Information: The 2022 audit included a detailed testing of 40 student files, of which this significant deficiency applies to 3, indicating an error rate of 7.50%. Cause and Effect: The University did not accurately account for the factors necessary in the calculation of Pell Grant awards, so multiple students were awarded and retained Pell Grant awards that were beyond eligibility. Recommendation: The University should utilize the appropriate information to ensure that to accurately award and disburse Pell Grant funds to students in line with the guidance provided by the Department. View of Responsible Officials: We concur. There were instances where King failed to calculate/disburse Federal Pell Grant funds appropriately based on their updated Enrollment Status/EFC. We found that the Pell distribution fund was locked, which prevented the Pell recalculation when the higher ISIR transaction was loaded. In addition, there was not a report in place to alert the Financial Aid office of students enrolled in both traditional and modular courses. As a result, those students were not being identified/monitored effectively for enrollment changes.