Capital University

Program: Federal Pell Grant Program CFDA 84.063 Criteria: Per 34 Code of Federal Regulations (CFR) 690.62 Calculation of a Federal Pell Grant, 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 award year. The Uniform Guidance Compliance Supplement states that the Department of Education provides institutions Payment and Disbursement Schedules for determining Pell awards each year. The Payment or Disbursement Schedule provides the maximum annual amount a student would receive for a full academic year for a given enrollment status, Expected Family Contribution (EFC), and Cost of Attendance (COA). The Payment Schedule is used to determine the annual award for full-time, three-quarter time, half-time, and less-than-half-time students. Condition: The College’s system of awarding and disbursement of Pell Grants to students was not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, 1 student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,698 for Fall and Spring, respectively; however, only received $2,773 for the Fall semester, causing a total underpayment of $925. Effect: Capital University did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment identified is due to an error in the Ellucian Colleague program. The program identified courses with similar names taken by the same student to not have credit hours. This caused the student's status to not correctly update in the system. Recommendation: An update to the Ellucian Colleague program should be made, that correctly identifies course names and numbers as credit hours taken during the semester. In addition, a level of review by the Student Financial Aid Department should be added to ensure the Pell amount awarded is in line with Title IV regulations. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Capital University reviewed all Pell awards for 2023 – 2024 and discovered a total of 3 occurrences of a Pell Grant being under awarded totaling $4,159. Students impacted have been credited for any error in their initial 41. award. The University is reconfiguring the Ellucian Colleague program to ensure that this error does not occur in the future.

PART III: MAJOR FEDERAL AWARD AUDIT FINDINGS AND QUESTIONED COSTS SECTION FINDING 2021-001 Program: COVID-19 CARES ACT: CFDA 84.425 HIGHER EDUCATION EMERGENCY RELIEF FUND Criteria: Under section 18004(a)(1) of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, certain critical information regarding student and institutional HEERF awards and related disbursements must be conspicuously posted on the institution's primary website within certain timeframes. Condition: Capital University's public reporting disclosures for both the student and institutional HEERF II awards were not conspicuously posted on the website. Repeat Finding from Prior Year: No Question Cost: None Context: The institution failed to conspicuously post certain critical information to the institution's website for the HEERF II grants. Effect: Capital University did not meet the requirement of conspicuously posting certain critical information to the institution's website within the prescribed timeframe and must post the information on its website and put in place controls to ensure that future reporting is posted timely. Cause: Capital University's web team, during routine updates to the website, inadvertently removed and replaced the information that was previously posted with the most recent quarter's information, believing it was out of date. Recommendation: Post the required disclosures conspicuously on the institution's website to conform with requirements under section 18004(a)(1) of the CARES Act and put in place controls to ensure future reporting is completed timely. Management Response: Management has taken corrective action and has posted the required information on the Capital University website. Additionally, the web team will no longer remove any compliance content without direction from the responsible office.