Finding Text
2024-002 – U.S. Department of Education Student Financial Assistance Cluster – Special Tests and Provisions: Verification
Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned.
Condition and Context: The College was unable to locate supporting documentation for the verification of student information for 5 students out of 7 students tested.
Known Questioned Costs: None, reporting requirement not met.
Cause: Due to turnover at the College and in the financial aid department during the year under audit, supporting documentation to support the verification of student’s information was not properly maintained in the student’s file.
Effect: The College was out of compliance with the requirement for student verification. This finding raises concerns about the college's compliance with federal verification requirements, potentially resulting in improper disbursement of federal funds.
Recommendation: The College should enhance its verification process by establishing a checklist for required documentation, providing training for staff on verification requirements, and implementing a tracking system to monitor outstanding documentation for students selected for verification.