Finding Text
Finding 2023-001: Special Tests and Provisions – Verification Student Financial Assistance Cluster U.S. Department of Education Award Period: June 1, 2022 – May 31, 2023 Criteria: An institution is required to establish written policies and procedures that incorporate theprovisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selectedfor verification by U.S. Department of Education (“ED”). The institution shall require each applicant whoseapplication is selected by ED to verify the information required for the Verification Tracking Group to whichthe applicant is assigned. However, certain applicants are excluded from the verification process as listedin 34 CFR 668.54(b). The institution shall also require applicants to verify any information used to calculatean applicant’s Estimated Family Contribution (“EFC”) that the institution has reason to believe is inaccurateand provide an accurate code for the individual’s verification status in the Common Origination andDisbursement (COD) system. (34 CFR 668.54(a); FSA Handbook Application and Verification Guide,Chapter 4). Condition: There were no controls in place to prevent erroneously updating verification tracking softwareto a status of selected but not verified. Context: In the 2022-2023 aid year, students selected for V5 verification were not required to submitincome information, however per the Dear Colleague letter from the Deputy Assistant Secretary for Policy,Planning, and Innovation of the Department of Education dated May 18, 2022, noted that all V4 and V5selected students must still provide verification of identity. Cause: The student's verification status was erroneously updated within the institution’s verification trackingsoftware to “Selected but not verified” and the record was marked complete. Effect: Verification of 1 selected student was noted completed. However, verification of identity had notbeen performed. Questioned costs: None Repeat finding: No.Recommendation: We recommend that management adheres consistently to its policies around theverification of student information to ensure compliance with verification requirements. We furtherrecommend that management perform a monitoring review for the list of students selected for verificationat a level of precision that would identify any errors or instances of noncompliance with federal requirementsand that this review be documented. Views of Responsible Officials: See management’s corrective action plan on page 51.