Finding 971957 (2023-009)

Material Weakness Repeat Finding
Requirement
E
Questioned Costs
$1
Year
2023
Accepted
2024-04-30
Audit: 305169
Organization: Arkansas Baptist College (AR)

AI Summary

  • Core Issue: ABC incorrectly calculated Pell Grant amounts for 24 out of 87 students, leading to an over-disbursement of $8,608.
  • Impacted Requirements: Compliance with Title IV regulations, specifically 34 CFR Section 690.62 (a), which outlines proper Pell Grant calculations based on enrollment status and other factors.
  • Recommended Follow-Up: Ensure adherence to federal guidelines for Pell Grant calculations and implement a review process to prevent future errors.

Finding Text

Audit Finding Reference Number Questioned Cost 2023 – 009 – Pell Grant Calculations $8,608 Federal Program and Specific Federal Award Identification CFDA Title and Number 84.063 Federal PELL Grant Program (PELL) Federal Award Number June 30, 2023 Federal Agencies U.S. Department of Education Pass-Through Entity Not applicable Criteria Title IV regulations, 34 CFR Section 690.62 (a) stipulates that the amount of a student’s Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each year. Each student’s Pell grant is based upon their enrollment status, cost of attendance and expected family contribution. Conditions and Contexts During my audit I noted twenty-four (24) students out of eighty-seven (87) tested whose Pell grant amount was calculated incorrectly. This resulted in ABC over-disbursing Pell in the amount of $8,608. Cause It appears that ABC did not review and verify all components of the Pell grant calculation to ensure the proper amount of Pell was disbursed. Questioned Costs For purposes of this condition, I have questioned costs totaling $8,608. Effect ABC disbursed excess Pell grant funds to students. Repeat Finding Yes. See Schedule of Prior Year Audit Finding 2022-009. Recommendation I recommend that ABC adhere to federal prescribed regulations by calculating and disbursing Pell grants in accordance with the Department of Education’s Pell payment schedule and in accordance with the Lifetime Eligibility Usage limits. Management’s Response Management concurs with this finding. The College will adhere to its policies, procedures, processes, and federal guidelines as it relates to calculating and awarding Pell. The College will return any ineligible funds accordingly. Responsible Administrators: Director of Financial Aid & Chief Financial Officer Effective: Immediately and ongoing.

Categories

Questioned Costs Student Financial Aid Eligibility Subrecipient Monitoring

Other Findings in this Audit

  • 395503 2023-002
    Material Weakness Repeat
  • 395504 2023-002
    Material Weakness Repeat
  • 395505 2023-003
    Material Weakness Repeat
  • 395506 2023-003
    Material Weakness Repeat
  • 395507 2023-004
    Material Weakness
  • 395508 2023-004
    Material Weakness
  • 395509 2023-005
    Material Weakness Repeat
  • 395510 2023-006
    Material Weakness Repeat
  • 395511 2023-007
    Material Weakness
  • 395512 2023-007
    Material Weakness
  • 395513 2023-008
    Material Weakness Repeat
  • 395514 2023-008
    Material Weakness Repeat
  • 395515 2023-009
    Material Weakness Repeat
  • 395516 2023-010
    Material Weakness Repeat
  • 395517 2023-010
    Material Weakness Repeat
  • 395518 2023-010
    Material Weakness Repeat
  • 395519 2023-010
    Material Weakness Repeat
  • 395520 2023-010
    Material Weakness Repeat
  • 395521 2023-010
    Material Weakness Repeat
  • 395522 2023-010
    Material Weakness Repeat
  • 395523 2023-011
    Material Weakness
  • 971945 2023-002
    Material Weakness Repeat
  • 971946 2023-002
    Material Weakness Repeat
  • 971947 2023-003
    Material Weakness Repeat
  • 971948 2023-003
    Material Weakness Repeat
  • 971949 2023-004
    Material Weakness
  • 971950 2023-004
    Material Weakness
  • 971951 2023-005
    Material Weakness Repeat
  • 971952 2023-006
    Material Weakness Repeat
  • 971953 2023-007
    Material Weakness
  • 971954 2023-007
    Material Weakness
  • 971955 2023-008
    Material Weakness Repeat
  • 971956 2023-008
    Material Weakness Repeat
  • 971958 2023-010
    Material Weakness Repeat
  • 971959 2023-010
    Material Weakness Repeat
  • 971960 2023-010
    Material Weakness Repeat
  • 971961 2023-010
    Material Weakness Repeat
  • 971962 2023-010
    Material Weakness Repeat
  • 971963 2023-010
    Material Weakness Repeat
  • 971964 2023-010
    Material Weakness Repeat
  • 971965 2023-011
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.86M
84.031 Higher Education_institutional Aid $1.78M
84.268 Federal Direct Student Loans $1.31M
84.425 Education Stabilization Fund $530,103
84.027 Special Education_grants to States $156,155
84.047 Trio_upward Bound $137,441
84.033 Federal Work-Study Program $63,376
84.007 Federal Supplemental Educational Opportunity Grants $34,642