Finding Text
Finding 2022-001 - Verification Federal Program: Student Financial Aid Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable CFDA Number: 84.268 Federal Award Number: P268K222121 Federal Award Year: June 30, 2022 Criteria: 34 CFR 668.60(b)(1) states that if an applicant fails to provide the requested verification documentation that the institution may not disburse any additional Federal Perkins Loan or FSEOG Program funds to the applicant, employ, continue to employ or allow an employer to employ the applicant under FWS, or originate the applicant's Direct Subsidized Loan or disburse any additional Direct Subsidized Loan proceeds for the applicant. Condition/Context: For one student tested out of total population of one student for V4/V5 verification who received subsidized and unsubsidized direct loans, there was no documentation that verification procedures, including the verification of the income reported on the Free Application for Federal Student Aid (FAFSA), was completed prior to Federal funds being disbursed to students. The sample was not a statistically valid sample. Questioned Costs: The total direct loans disbursed to the student during fiscal year 2022 was $10,392. Cause: The College does not have a system of proper controls and procedures in place to ensure that all aspects of the verification process are completed prior to disbursing federal funds to students. Effect: Students could be awarded Federal funds that they are not eligible for or not be awarded the full amount of Federal funds that they would otherwise have been eligible for. Recommendation: We recommend that the School put proper policies and controls in place to ensure that all aspects of the verification process are completed prior to disbursing Federal funds to students. Views of Responsible Officials and Planned Corrective Actions: The U.S. Department of Education waived the requirement for verification for academic year 2021/2022 for V1, V2 and V3 students, however institutions were required to complete verification for V4 and V5 students. All of the College's students fell under V1, V2 and V3 except for one student. The College has created a selection set in its financial aid software to identify these students so they will be selected for verification. Finding 2022-001 - Verification Federal Program: Student Financial Aid Federal Agency: U.S. Department of Education Pass-Through Entity: Not applicable CFDA Number: 84.268 Federal Award Number: P268K222121 Federal Award Year: June 30, 2022 Criteria: 34 CFR 668.60(b)(1) states that if an applicant fails to provide the requested verification documentation that the institution may not disburse any additional Federal Perkins Loan or FSEOG Program funds to the applicant, employ, continue to employ or allow an employer to employ the applicant under FWS, or originate the applicant's Direct Subsidized Loan or disburse any additional Direct Subsidized Loan proceeds for the applicant. Condition/Context: For one student tested out of total population of one student for V4/V5 verification who received subsidized and unsubsidized direct loans, there was no documentation that verification procedures, including the verification of the income reported on the Free Application for Federal Student Aid (FAFSA), was completed prior to Federal funds being disbursed to students. The sample was not a statistically valid sample. Questioned Costs: The total direct loans disbursed to the student during fiscal year 2022 was $10,392. Cause: The College does not have a system of proper controls and procedures in place to ensure that all aspects of the verification process are completed prior to disbursing federal funds to students. Effect: Students could be awarded Federal funds that they are not eligible for or not be awarded the full amount of Federal funds that they would otherwise have been eligible for. Recommendation: We recommend that the School put proper policies and controls in place to ensure that all aspects of the verification process are completed prior to disbursing Federal funds to students. Views of Responsible Officials and Planned Corrective Actions: The U.S. Department of Education waived the requirement for verification for academic year 2021/2022 for V1, V2 and V3 students, however institutions were required to complete verification for V4 and V5 students. All of the College's students fell under V1, V2 and V3 except for one student. The College has created a selection set in its financial aid software to identify these students so they will be selected for verification.