Finding Text
Finding 2022-002: Verification Type of finding: Significant Deficiency in Internal Controls over Compliance and Compliance Major Program: Student Financial Aid Cluster Questioned Cost: $4,202 Criteria 34 CFR 668.51 through 668.61 sets forth the criteria for verifying applicant information required for the Verification Tracking Group to which the applicant is assigned. Condition For 1 out of 40 students selected for testing, the District failed to obtain the necessary documentation for the student which was selected for verification. Cause The College disbursed funds to the selected student before obtaining the Educational Purpose and Identity Form, which deems the student ineligible to receive funds. Effect The error in verification resulted in the student receiving student financial aid funds while being ineligible to receive funds. Recommendation We recommend the financial aid and registrar?s offices review documents of students selected for verification ensure that all documents required for verification are obtained. Views of Responsible Officials and Planned Corrective Actions Student Financial Aid Services has revised our V4 Federal Verification procedures to require a second authorized staff member to review and approve any V4 Federal Verification documents directly from our imaging system. While it was an option to have the V4 documents reviewed by a second authorized staff member it was not required and often during the peak season campuses would accept, review, and approve V4 documents all at the same time. This change will require one authorized staff member to review documents when they are received from the student and again in our imaging system by a second authorized staff member. We have provided copies of our revised procedures and scheduled staff training. The person responsible for implementing these revised procedures will be the District Director of Student Financial Aid Services.