Finding 636516 (2022-001)

-
Requirement
E
Questioned Costs
$1
Year
2022
Accepted
2022-11-21
Audit: 55228
Organization: Baptist Bible College (MO)

AI Summary

  • Core Issue: One student's adjusted gross income was not updated during verification, leading to an incorrect Expected Family Contribution (EFC) calculation.
  • Impacted Requirements: Verification process for V1 group students must include accurate income verification to ensure proper financial aid eligibility.
  • Recommended Follow-up: Ensure the Financial Aid Director recalculates EFC and Pell awards for affected students and returns any overawarded funds, as was done in this case.

Finding Text

FINDING 2022-001 ? Verification Federal Agency: U.S. Department of Education; Office of Federal Student Aid Pass through Entity: Not applicable Program Name: Federal Pell Grant ALN and Program Expenditures: 84.063 ($729,843) Award Number: P063P213629 Federal Award Year: July 1, 2021 to June 30, 2022 Questioned Costs: $1,000 Condition Found: The adjusted gross income was not updated to the amount reported on the tax return during the verification process for one of the forty students in our sample. Criteria: If a student is in the V1 verification group, the following items must be verified: adjusted gross income, U.S. income taxes paid, untaxed portions of IRA distributions, untaxed portions or pensions, IRA deductions and payments, tax exempt interest income, education credits, household size, the number in college, SNAP benefits, and child support paid. If discrepancies are found when reviewing these documents and amounts, the information should be updated and the student?s financial aid eligibility should be recalculated. Cause: A tax return for the student?s parents was received as part of the verification process. The tax return showed the adjusted gross income total as $39,163 while the adjusted gross income input in the ISIR information and used in the Expected Family Contribution (?EFC?) calculation was $24,400. The amount was not updated during the verification process. Possible Asserted Effect: The incorrect adjusted gross income was used in the EFC calculation. When the correct figure is used, the EFC should be 1,354. This reduced the amount of Pell the student was eligible to receive. The student was awarded $6,145 of Federal Pell Grant funds, but was only eligible to receive $5,145. There was a $1,000 overaward. Repeat Finding: This finding was not reported in the immediately prior audit. Statistical Sampling: The sample was not intended to be, and was not, a statistically valid sample. Recommendation: The Financial Aid Director should correct the adjusted gross income for the student in question and recalculate the EFC. The new EFC and Pell award should be calculated. Based on the results, $1,000 in Pell Grant funds should be returned to the Department of Education. Management Response: Management agrees with the auditors? finding and their recommendation. The Financial Aid Director updated the adjusted gross income and recalculated the EFC and Federal Pell Grant award for the student in question. The Financial Aid Director determined that $1,000 of Federal Pell Grant funds should be returned for this student. On September 12, 2022, $1,000 of Federal Pell Grant funds was returned to the Department of Education.

Categories

Questioned Costs Student Financial Aid Eligibility

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.31M
84.063 Federal Pell Grant Program $729,843
84.425 Education Stabilization Fund $43,164
84.033 Federal Work-Study Program $35,361
84.007 Federal Supplemental Educational Opportunity Grants $27,180