Finding Text
Finding No.: 2025-002 Federal Agency: U.S. Department of Education AL Program: 84.063/84.033/84.007 Student Financial Assistance Cluster Federal Award No.: Title IV HEA Program OPE ID 01034300 Area: Special Tests and Provisions: Verification Questioned Costs: $20,042 Criteria: 34 CFR 668.54(a); FSA Handbook Application and Verification Guide, Chapter 4 requires an institution 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. Institutions 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. However, certain applicants are excluded from the verification process as listed in 34 CFR 668.54(b). A menu of potential verification items for each award year is published in the Federal Register, and the items to verify for a given application are selected by ED from that menu and indicated on the student’s output documents. Verification tracking groups and verification items for each award year can also be found in the annual FSA Handbook, Application and Verification Guide, Chapter 4. Institutions shall also require applicants to verify any information used to calculate an applicant’s Estimated Family Contribution (EFC) that the institution has reason to believe is inaccurate and provide an accurate code for the individual’s verification status in the Common Origination and Disbursement (COD) system. Condition: The following conditions were observed for 3 out of the 12 students tested out of a total of 25 students requiring verification during the fiscal year. The total amount awarded to these 3 students throughout the year was $20,042, whereas the total amount awarded to all 12 students tested was $83,491. Total amount awarded to all students selected for verification was $127,151. For 3 (or 25%) of 12 students tested, we noted discrepancies in family size between the verification worksheets and the students’ Institutional Student Information Records (ISIR), wherein the family size reflected on the verification worksheets was higher than that reported on the ISIR. Despite these discrepancies identified during the verification process, the ISIRs were not updated or corrected accordingly. Cause: The condition was due to the absence of adequate procedures and review controls to ensure that discrepancies identified during the verification process were properly updated and reflected in the ISIR and reported accurately in the COD system. Effect or potential effect: The College is in noncompliance with applicable verification requirements. Identification as a Repeat Finding: Finding No. 2024-004 Recommendation: The College should enhance training programs for staff involved in the verification process to ensure they are fully aware of the requirements and procedures. Establish robust internal controls and review mechanisms to ensure that verification worksheets are completed accurately and consistently with ISIRs. Implement a tracking system to ensure that all required corrections to ISIRs are performed in a timely manner. Views of responsible officials The College acknowledges the finding. Refer to corrective action plan.