Finding Text
2025-011 – Special Tests and Provisions - Verification – Material Weakness in Internal Controls over Compliance and Instance of Noncompliance Department of Education Student Financial Assistance Cluster Federal Assistance Listing Number: 84.063, 84.268, 84.033, 84.007 Federal Program Name: Federal Pell Grant Program, Federal Direct Student Loans, Federal Work Study, Federal Supplemental Educational Opportunity Grant Federal Award Number: P063P242403, P033A244364, P268K252403, P007A244364 Award Year: 2024-25 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/context – The University was unable to provide an accurate and complete population of students selected for verification during fiscal year 2024-2025. We selected one student during the year who was verified for testing. Based on a review of the support provided and discussion with management, it was determined that the verification was missing salary information for the dependent student’s parents. The University did not follow up on the discrepancy between the student’s verification request and the information reported in the students Institutional Student Information Record (ISIR). Questioned costs – Undeterminable, as the information was not verified, we are not able to determine if the need based aid would have been effected. Cause/effect – This occurred because of turnover in the student financial assistance office and a lack of properly documented and implemented control policies and procedures to ensure that students selected for verification are properly reviewed and verified. Repeat finding – No Recommendation – We recommend the University implement the proper controls to ensure that verification of students is completed accurately and according to the applicable guidance. Views of responsible officials and planned corrective actions – Heritage University agrees with the recommendation and is strengthening its processes and internal controls surrounding student verification. As part of the University's broader efforts to build capacity within the Financial Aid department, management is reviewing existing verification procedures to ensure requirements are clearly documented, consistently applied, and aligned with applicable federal guidance.