Finding 959044 (2023-001)

- Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-03-20
Audit: 296164
Organization: East-West University (IL)
Auditor: Sikich LLP

AI Summary

  • Core Issue: One student was incorrectly awarded a Pell Grant due to being classified as full-time instead of three-quarters time, resulting in a $574 over award.
  • Impacted Requirements: This finding indicates noncompliance with the Eligibility Compliance Requirement as per 34 CFR 690.63, and it is a repeat issue from last year.
  • Recommended Follow-up: The University should enhance monitoring of student enrollment statuses to ensure accurate Pell Grant disbursements moving forward.

Finding Text

Criteria: According to 34 CFR 690.63 students may qualify for a maximum Pell Grant award of $6,895 for an award year. The maximum amount is awarded to students with a zero Expected Family Contribution (EFC) and full-time enrollment status. Students with less than full-time enrollment or more than a zero EFC are eligible for a reduced Pell award. Condition: During our student file testing we noted one student out of forty was not disbursed the correct Pell Grant. The student was enrolled as three-quarters time but was awarded as being a full-time student resulting in an over award of $574. We consider this error to be an instance of noncompliance relating to the Eligibility Compliance Requirement. This finding was repeated from last year, see Prior Year finding 2022-002. Statistical sampling was not used when making sample selections. Questioned Costs: $574 Effect: One student received an incorrect amount of Pell award and was over awarded an amount of $574. Cause: The University’s internal controls did not identify that the incorrect amount of Pell grant was awarded to the student. According to the Department of Education’s Pell matrix chart, the student was over awarded Pell in the amount of $574. Recommendation: We recommend the University closely monitor all student’s enrollment status to ensure all students receiving financial aid are disbursed the correct amount. Views of Responsible Officials: Management agrees with the Single Audit finding and a response is included in the Corrective Action Plan.

Categories

Questioned Costs Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.73M
84.268 Federal Direct Student Loans $1.68M
84.425 Covid-19 Higher Education Emergency Relief Funds (arpa) Student Aid Portion $590,244
84.031 Higher Education_institutional Aid $190,961
84.268 Federal Direct Student Loans - Plus Loans $159,459
84.425 Covid-19 Governor's Emergency Education Relief Fund (geer) $122,665
84.033 Federal Work-Study Program $48,625
84.007 Federal Supplemental Educational Opportunity Grants $38,026
84.116 Fund for the Improvement of Postsecondary Education $32,765