Finding Text
Finding FA 2024-004: Special Tests and Provisions – Verification: Late Reporting of Verification Results
Federal Program Information:
Assistance Listing Number: ALN 84.007, 84.033, 84.063, 84.268
Federal Program Name: Student Financial Assistance Cluster;
Federal Supplement Educational Opportunity Grants (FSEOG),
Federal Work Study Program, Federal Pell Grant Program,
Federal Direct Student Loans
Federal Agency: U.S. Department of Education
Passed Through Entity: N/A
Federal Award Number: P007A210457, P033A210457, P063P210036, P268K220036
Federal Award Year: July 1, 2023, to June 30, 2024
Campuses: Los Angeles Harbor College
Los Angeles Trade Technical College
Los Angeles Valley College
Compliance Requirement: Special Tests and Provisions – Verification
Criteria or Specific Requirement:
Per Application and Verification Guide of 2023-2024 Federal Student Aid Handbook, Chapter 4, Title Verification, Updates, and Corrections, the institution must report the verification results of identity for any student for whom the institution (1) receives an ISIR with tracking flag V4 or V5-as selected by the Central Processing System (CPS), and (2) request verification documentation. The institution reports this information
on the FAA Access to CPS Online website. For the 2023–2024 award year, the institution will then enter one of the following numeric codes that most applies:
Code 1 – Verification completed in person, no issues found
Code 2 – Verification completed remotely, no issues found
Code 3 – Verification attempted; issues found with identity.
Code 5 – No response from applicant or unable to locate
The institution is required to report results no more than 60 days following the first request to the student for documentation of identity. Inaccurate and untimely reporting may subject the institution to findings because of the annual compliance audit or a program review. If there is a change in a result the institution has already submitted, the institution can submit the new code using the above process and must make that change within
30 days of becoming aware that a change occurred. The most recent submission will supplant prior award year submissions. Because the Financial Aid Administrator (FAA) Access website does not store a list of these verification results for the institution to retrieve, ED recommends the institution to print and keep the confirmation page for its records.
Identified Condition:
Los Angeles Harbor College, Los Angeles Trade Technical College, and Los Angeles Valley College
Of the 60 students selected for verification test work, we noted 10 students with verification codes (tracking flags) V4 and V5 whose files were reviewed and verification results submitted to CPS beyond the required 60-day timeframe following the campuses’ initial request to the student for identity documentation. See schedule of identified condition.
Cause and Effect:
Los Angeles Harbor College, Los Angeles Trade Technical College, and Los Angeles Valley College
Due to many unexpected FAFSA Simplification rollout issues for FY 2024-25, the Financial Aid Technicians could not start reviewing 2023-24 files until late into the summer term, and V4/V5 verification data was not reported until after file review had begun.
Questioned Costs:
Not applicable.