Finding 975412 (2023-001)

Finding: Item 2023-001 – Special Tests: Disbursements to or on Behalf of Students Federal Program – Federal Pell Grant Federal ALN – 84.063 Federal Award Number – P063P188097 Federal Award Year – September 30, 2023 Federal Agency – U.S. Department of Education Pass-through Entity – Not Applicable Significant Deficiency Criteria: Title 34 CFR Section 690.62 states the amount of a student's Pell grant for an academic year is based upon the payment and disbursement schedule published by the Secretary for each award year. Condition / context: Out of a sample of eleven students who received Federal Pell Grants during the audit period, three students were not calculated correctly resulting in over and under awarded amounts. The sample was not a statistically valid sample but was determined using Chapter 11 – Audit Sampling Considerations of Uniform Guidance Compliance Audits of the Audit and Accounting Guide for Government Auditing Standards and Single Audits. Cause: One student was close to the lifetime limit of Federal Pell Grants but was still eligible for a Federal Pell Grant in the current year. The other two students' Federal Pell Grants were not calculated appropriately based on the workload shown on the transcripts for the students. Additionally, there was a lack of review to ensure the students' Federal Pell Grants were calculated correctly. Repeat finding: Not a repeat finding. Effect: Three students did not receive the proper amount of Federal Pell Grant funds based on their eligibility. Recommendation: We recommend that the Financial Aid Coordinator institute a review procedure that would ensure that the Pell Grant amounts disbursed are calculated correctly. View of responsible officials: Management's response is reported in "Management's Views and Corrective Action Plan" at the end of this report.