Finding 371188 (2023-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-02-29

AI Summary

  • Core Issue: The College failed to maintain required verification documents for 1 out of 14 students selected for federal financial aid verification.
  • Impacted Requirements: This noncompliance with 34 CFR 668.57 could jeopardize future funding from the U.S. Department of Education.
  • Recommended Follow-Up: Strengthen internal controls to ensure that verification documents are properly saved and accessible, even after staff departures.

Finding Text

Finding 2023-001: Special Tests and Provisions – Lack of Maintaining Verification Documents Federal Agency: U.S. Department of Education Program Name: Student Financial Assistance Cluster, Federal Direct Student Loans Assistance Listing Number: 84.268 Award Year: June 1, 2022 – May 31, 2023 Program Expenditures: $200,070,965 Criteria: Per 34 CFR 668.57, if an applicant is selected to verify information, an institution must obtain the specified documentation. Condition: During testing of students selected for verification, for 1 out 14 students selected for testing, the College could not provide the supporting verification documents. Cause: The financial aid administrator that performed the verification left the College shortly after performing the verification and did not properly save and maintain th documents. Effect: The College is required to maintain documents identifying the required verification procedures were performed in accordance with Department guidelines. Noncompliance with federal guidelines could imapct future funding. Questioned Costs: None Context: For 1 out of 14 students selected for verification testing, verification documents could not be provided identifying the verification procedures were completed. Repeat Finding: No Recommendation: We recommend the College strengthen internal controls and ability of administrators to pull information saved by specific employees prior to departure. Views of Responsible Officials: Management agrees with the finding. Please see corrective action plan attached.

Corrective Action Plan

Corrective Action Plan – The Chicago School Identifying Number: 2023-001 Finding: Special Tests and Provisions- Lack of Maintaining Verification Documents Applicable Regulation: Per 34 CFR 668.57, if an applicant is selected to verify information, an institution must obtain the specified documentation. Finding: During testing of students selected for verification, for 1 out of 14 students selected for testing, the College could not provide the supporting verification documents. Summary: According to our records, after this student was selected by the Department of Education for verification, the student submitted the required verification worksheet (V4) on 8/22/22. The financial aid advisor that performed the verification left the College shortly after performing the verification and did not properly save and maintain the documents. On 8/25/23, staff reached out to the student via phone and email to retrieve a copy of the previously submitted V4 worksheet but did not receive a response. The advisor that originally verified the file is no longer employed by The Community Solution. Corrective Action Taken or Planned: On 7/1/23, the Financial Aid Training Department assumed the role and responsibilities of reviewing all financial aid files for accuracy. The department conducts reviews on a weekly basis with oversight provided by the Financial Aid Training Manager. As the result of each weekly audit, a report is compiled and provided to both financial aid leadership and staff. If there are any missing documents or errors found, these are tracked through to completion by the training department. Additionally, the Financial Aid team provides 1:1 training to staff if errors are uncovered during the weekly review. The error in question did not create any financial liabilities for the student or institution as the aid received was not need based. The institution informed RSM of this error and the corrective actions taken. Contact Person Lawrence McGhee, Associate Vice President of Financial Aid lawrencemcghee@tcsedsystem.edu Anticipated Completion Date July 1, 2023

Categories

Special Tests & Provisions Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 947630 2023-001
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $200.07M
84.425 Education Stabilization Fund $1.65M
84.063 Federal Pell Grant Program $1.55M
84.033 Federal Work-Study Program $1.45M
84.007 Federal Supplemental Educational Opportunity Grants $184,459
84.217 Trio_mcnair Post-Baccalaureate Achievement $94,997