Finding 978107 (2023-002)

Reference Number: 2023-002 Compliance Requirement: Eligibility Type of Finding: Compliance and Internal Control Internal Control Impact: Material Weakness Compliance Impact: Nonmaterial Noncompliance AL Number(s) and Title(s): Student Financial Assistance Cluster 84.063 Federal Pell Grant Program 84.007 Federal Supplemental Educational Opportunity Program 84.033 Federal Work Study Program 84.268 Federal Direct Student Loans 93.264 Nurse Faculty Loan Program (NFLP) Federal Awarding Agency: U. S. Department of Education Federal Award Number: P063P221055 P007A220074 P033A220074 P268K231055 2 E10HP39215-03-00 Pass-through Entity: None Pass-through Award Number: None Questioned Costs: $14,609.00 The University failed to verify whether students began attendance in classes prior to disbursing Title IV aid. Finding Title 34 of the Code of Federal Regulations (CFR) Part 690.80 requires the recalculation of a Federal Pell Grant award to account for changes to the student’s costs, expected family contribution (EFC), or enrollment status. For a change in the student’s enrollment status from one academic term to another term within the same award year, the institution shall recalculate the Federal Pell Grant award for the new payment period. If a student’s projected enrollment status changes during a payment period before the student begins attendance in all of his or her classes for that payment period, the institution shall recalculate the student’s enrollment status to reflect only those classes for which the student actually began attendance. Schedule of Findings and Questioned Costs For the Year Ended September 30, 2023 Twenty-five students were selected for return to Title IV testing from a population of student records identified by the University as students receiving all F’s or total withdrawals for the financial aid award year. Although these students did not require a return to Title IV, it was noted during this test that four students had not begun attendance in all classes or never attended any classes for the term enrolled. Further testing revealed the University failed to properly verify attendance for these students and recalculate the federal financial assistance based on the enrollment or change in enrollment status, as required. Failure to review changes in enrollment status and recalculate awards as required could result in overawards to noneligible recipients and noncompliance in the Title IV programs. These students were awarded $8,313 in Pell and $6,296 in Direct Loans which resulted in overawards of these amounts. Recommendation The University should verify whether students begin attendance in registered classes and recalculate Federal Pell Grant and Federal Direct Student Loan awards based on enrollment or change in enrollment status, in accordance with Title 34 of the Code of Federal Regulations, Part 690.80. Views of Responsible Officials of the Auditee Management agrees with this finding and will take corrective actions as detailed in the corrective action plan.