Finding 7879 (2023-001)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-01-08
Audit: 10258
Organization: West Shore Community College (MI)

AI Summary

  • Core Issue: Three out of 40 students had incorrect Cost of Attendance (COA) and Expected Family Contribution (EFC) data, leading to over-awarding of Pell Grants.
  • Impacted Requirements: The College failed to properly adjust COA for less-than-half-time students, violating Uniform Guidance criteria for Pell Grant calculations.
  • Recommended Follow-Up: Implement a review process to ensure COA and EFC data are updated annually and verified by an independent official.

Finding Text

2023-001 – Pell Grant Calculation. Finding Type. Immaterial Noncompliance/Significant Deficiency in Internal Control over Compliance (Eligibility). Programs. Student Financial Assistance Cluster; U.S. Department of Education; Numbers 84.007, 84.033, 84.063, and 84.268; Award Numbers P007A222103, P033A222103, P063P225088, and P268K225088. Criteria. The Uniform Guidance states that the College must determine the maximum scheduled award a student would receive based on their Expected Family Contribution (EFC) and Cost of Attendance (COA) using the payment schedule provided by the U.S. Department of Education. Students must be awarded on the basis of a COA comprised of allowable costs assessed to all students carrying the same academic workload. COA must be prorated for students who are attending less than an academic year, or who are less than full-time in a term-based program. Condition. Three students out of the 40 tested had an incorrect COA and/or EFC recorded in PowerFAIDS. The error was isolated to the population of students enrolled less-than-half-time at the College. The College determined that they did not properly adjust the COA for the year. Subsequent to initial testing, the College adjusted and re-calculated the COA and EFC for all less-than-half-time students during the audit fieldwork. From the population of less-than-half-time students who received a Pell Grant during fiscal year 2023, a total of 34 students were awarded a higher amount of Pell than they were eligible to receive. Cause. This condition was caused by insufficient review of the COA and EFC data being used by the College in determining the Pell Grant amount for students. Effect. As a result of this condition, the College was exposed to an increased risk that incorrect information would be used to determine students' Pell Grant award amounts. Questioned Costs. No costs are required to be questioned as the amounts did not exceed the reporting threshold. Recommendation. We recommend the College implement procedures to ensure the COA and EFC used to calculate each student's Pell Grant is updated for each academic year and reviewed by an independent official. View of Responsible Officials. Management concurs with this finding and has prepared a Corrective Action Plan.

Categories

Student Financial Aid Allowable Costs / Cost Principles Eligibility Reporting Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 7878 2023-001
    Significant Deficiency
  • 7880 2023-001
    Significant Deficiency
  • 7881 2023-001
    Significant Deficiency
  • 7882 2023-002
    Significant Deficiency
  • 7883 2023-002
    Significant Deficiency
  • 7884 2023-002
    Significant Deficiency
  • 7885 2023-002
    Significant Deficiency
  • 584320 2023-001
    Significant Deficiency
  • 584321 2023-001
    Significant Deficiency
  • 584322 2023-001
    Significant Deficiency
  • 584323 2023-001
    Significant Deficiency
  • 584324 2023-002
    Significant Deficiency
  • 584325 2023-002
    Significant Deficiency
  • 584326 2023-002
    Significant Deficiency
  • 584327 2023-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.29M
84.425 Education Stabilization Fund $822,050
84.268 Federal Direct Student Loans $278,537
84.048 Career and Technical Education -- Basic Grants to States $108,106
84.007 Federal Supplemental Educational Opportunity Grants $80,151
84.033 Federal Work-Study Program $21,478