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(P-97-02) (P-97-02) This letter provides information to institutions on procedures for requesting Federal Pell Grant Authorization Adjustments. It supersedes information contained in the initial instruction, GEN 94-14 dated April 1994

DCLPublicationDate: 6/1/97
DCLID: P-97-2
AwardYear:
Summary: This letter provides information to institutions on procedures for requesting Federal Pell Grant Authorization Adjustments. It supersedes information contained in the initial instruction, GEN 94-14 dated April 1994



June 1997


P-97-2

SUMMARY:
This letter provides information to institutions on procedures for requesting Federal Pell Grant Authorization Adjustments. It supersedes information contained in the initial instruction, GEN 94-14 dated April 1994.

Dear Colleague:

The Higher Education Act of 1965, as amended (HEA), permits an institution to receive credit or reimbursement for awards of Title IV Student Financial Assistance (SFA) made by the institution that were not previously recognized by the Department of Education (ED). Institutions may receive credit or reimbursement if those awards are disclosed in audits conducted after December 31, 1988, pursuant to provisions of Section 487 (c)(7) of the HEA, and 34 CFR 690.83 (d) of the Federal Pell Grant Program regulations.

This letter provides guidance for institutions requesting Federal Pell Grant authorization adjustments under this provision. In order for an institution to qualify for a Federal Pell Grant authorization adjustment for awards made but not previously reported, the institution must satisfy the following:

The claim must be based on a finding contained in the initial audit report for the award year. Any request not based on a finding contained in the initial audit report will be denied. The audit finding need not establish the precise amount of adjustment that the institution claims, but the finding must at the very least establish that the institution made Federal Pell Grant disbursements for which it has not received from ED either funds or credit as proper expenditures.

The initial audit on which the claim is based must be submitted by the institution timely in accordance with 34 CFR 668.23 (c). If an extension was granted to the institution, the audit must be submitted by the extension date. There will be no exceptions to the due dates in either condition above.

Institutions requesting Pell adjustments on the basis of a finding in an audit should follow the procedures outlined in Enclosure A of this letter. These adjustments should be submitted as a separate attachment to the initial audit report using the format of Enclosure B of this letter. As described in Enclosure A, an independent auditor’s attestation report on the adjustments must also be attached.

Page - Prior Year Authorization Adjustments Through Audit Reports

For audits conducted in accordance with the
SFA Audit Guide, recipients or their auditors are required to submit five copies of their reports, management letters and corrective action plans to the following address:

U.S. Department of Education
Office of Postsecondary Education
Institutional Participation & Oversight Service
Data Management & Analysis Division
Attention: Federal Pell Grant Authorization Adjustments
600 Independence Ave, SW
ROB 3, Room 3082
Washington, D.C. 20202-5430

For audits conducted in accordance with the Single Audit Act (A-128 and A-133), recipients or their auditors must send a transmittal cover and two copies of their audit report to:

Federal Audit Clearinghouse
Bureau of the Census
P.O. Box 5000
Jeffersonville, IN 47199-5000

We hope that this information will help expedite your request for adjustments to prior year Federal Pell Grant authorization levels. If you have any questions, please call (202) 708-9219.

Sincerely,



Elizabeth M. Hicks
Deputy Assistant Secretary
for Student Financial Assistance


Attachment A
Attachment B

Last Modified: 05/31/1997