Finding Text
Finding 2023-003: Student Financial Assistance Cluster Allowable Costs and Allowable Activities and Eligibility – Pell and SEOG
Federal Agency: Department of Education
Program: Student Financial Assistance Cluster
Criteria: WCCC is required to have controls in place to ensure students receive the proper amount of student financial assistance funding they are entitled to based on financial need.
Condition: Our financial aid sample of 40 items tested yielded 28 students who received Pell Grant funding. Of those 28 students, we noted two instances where the student received Pell funding that they were not entitled to receive. The amounts awarded to the students were $506 and $568, when they were both entitled to receive $0. In addition, our Return of Title IV Funds sample of 25 yielded 16 students who received Pell Grant funding. We noted two of those students also received Pell grants over the amount they were entitled to. The amounts awarded to both students were $1,724, when they were both entitled to $862. Our Return of Title IV Funds sample of 25 also included one student who inadvertently received $500 of SEOG funds they were not eligible to receive.
Cause: Controls were not in place to ensure students received the proper amount of Student Financial Assistance they were entitled to.
Effect: WCCC is not in compliance with required calculations for student financial assistance funding. WCCC may be liable to return funds to the Department of Education related to the overpayments to students.
Repeat Finding: This is not a repeat finding.
Questioned costs: Unknown
Recommendation: We recommend that WCCC review policies and procedures to ensure that proper procedures are in place verifying the accuracy of student eligibility for grant funding and that the proper amount is paid to the student based on financial need.
View of Responsible Officials and Planned Corrective Action: The findings noted three separate issues related to policies and procedures verifying the accuracy of the student eligibility for grant funding and the proper amount paid to the student based on financial need. After a review of Pell grants, Return To Title IV funds, and the award of SEOG after a return of Title IV calculation, it was determined that human error as a result of manual work was the root cause. To correct the root cause, an increased level of internal control via another level of review and a re-review of aid for the FY24 year was implemented. Further, for students who had an enrollment status of less than full time, we have increased the number of reviews for compliance. Moving forward, the College is implementing a new ERP system in which internal controls will be configured to alleviate manual work thus human error and increase compliance.