Finding 961892 (2023-002)

Significant Deficiency
Requirement
E
Questioned Costs
-
Year
2023
Accepted
2024-03-27

AI Summary

  • Core Issue: A student received an overpayment of $940 in Pell funds due to incorrect enrollment status affecting eligibility calculations.
  • Impacted Requirements: The College failed to adhere to the maximum Pell lifetime eligibility limit of 600%, resulting in noncompliance with federal guidelines.
  • Recommended Follow-Up: Implement a secondary review process for Pell calculations and the data used to ensure accurate compliance moving forward.

Finding Text

Finding Type. Immaterial Noncompliance / Significant Deficiency in Internal Control over Compliance (Eligibility). Program. Student Financial Assistance Cluster; U.S. Department of Education; Assistance Listing Numbers 84.007, 84.033, 84.063, 84.268; Award Numbers P007A222008, P033A222008, P063P221633 and P268K231633. Criteria. Students that receive Pell may not receive more than six scheduled awards (12 semester, or the equivalent) as measured by the percentage of "lifetime eligibility used" field in the Common Origination and Disbursement ("COD") system. In addition, the maximum percentage of lifetime eligibility that can be used for student eligibility is 600%. Condition. At the beginning of the Fall 2022 semester, a student was approaching their 600% lifetime Pell limit. When a student is between 500% and 600%, the College is supposed to perform a manual calculation so that the Pell award comes close to the maximum limit but does not exceed it. However, due to mistakenly being marked as full-time instead of three-quarters-time, the calculation resulted in a payment of $3,761 instead of $2,821, an overpayment of Pell by $940. Cause. This condition was caused by a lack of detailed review of the manual Pell calculation before distribution of funds to the student. Effect. As a result, the College exceeded the Pell Lifetime Eligibility and overpaid a student with $940 in excess funds. It is our understanding that on September 15, 2023, the College was repaid by the student affected by the overpayment which was remitted to the Department of Education. Questioned Costs. No costs were required to be questioned as a result of this finding, inasmuch as our testing did not reveal any unallowed costs. Recommendation. We recommend that the College implement a secondary review process of not only the calculation, but for the determination of information that is used in the calculation as well. View of Responsible Officials. Management agrees with this finding and has prepared a Corrective Action Plan.

Categories

Eligibility Significant Deficiency Internal Control / Segregation of Duties

Other Findings in this Audit

  • 385449 2023-002
    Significant Deficiency
  • 385450 2023-002
    Significant Deficiency
  • 385451 2023-002
    Significant Deficiency
  • 385452 2023-002
    Significant Deficiency
  • 385453 2023-003
    Significant Deficiency
  • 385454 2023-003
    Significant Deficiency
  • 385455 2023-003
    Significant Deficiency
  • 385456 2023-003
    Significant Deficiency
  • 385457 2023-004
    Significant Deficiency
  • 385458 2023-004
    Significant Deficiency
  • 385459 2023-004
    Significant Deficiency
  • 385460 2023-004
    Significant Deficiency
  • 385461 2023-005
    Significant Deficiency
  • 385462 2023-005
    Significant Deficiency
  • 385463 2023-005
    Significant Deficiency
  • 385464 2023-005
    Significant Deficiency
  • 961891 2023-002
    Significant Deficiency
  • 961893 2023-002
    Significant Deficiency
  • 961894 2023-002
    Significant Deficiency
  • 961895 2023-003
    Significant Deficiency
  • 961896 2023-003
    Significant Deficiency
  • 961897 2023-003
    Significant Deficiency
  • 961898 2023-003
    Significant Deficiency
  • 961899 2023-004
    Significant Deficiency
  • 961900 2023-004
    Significant Deficiency
  • 961901 2023-004
    Significant Deficiency
  • 961902 2023-004
    Significant Deficiency
  • 961903 2023-005
    Significant Deficiency
  • 961904 2023-005
    Significant Deficiency
  • 961905 2023-005
    Significant Deficiency
  • 961906 2023-005
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.16M
84.268 Federal Direct Student Loans $821,932
84.425 Education Stabilization Fund $279,026
84.042 Trio_student Support Services $266,457
84.007 Federal Supplemental Educational Opportunity Grants $37,690
84.033 Federal Work-Study Program $15,609
84.048 Career and Technical Education -- Basic Grants to States $9,200