Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.063, 84.007, 84.268, 84.379, 84.033, & 84.038
Award Period: 7/1/2022 – 6/30/2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 668.56 requires institutions to obtain supporting documentation and perform verification procedures for students selected by the Central Processing System (CPS). Supporting documents must be retained to support the results of students selected for verification. 34 CFR 668.57 lists the acceptable documentation to be obtained for the verification procedures.
Condition: During our testing, it was noted 3 of 8 students did not have the required support in their student files.
Questioned Costs: None
Context: During our testing, we noted that the University was unable to locate the Statement of Educational Purpose and other supporting verification documentation for 3 of 8 students.
Cause: The University’s processes and controls did not ensure the information obtained and utilized for verification purposes was retained in the files.
Effect: The University is not maintaining proper documentation in student files.
Repeat Finding: Yes, prior year finding 2022-005.
Recommendation: The University should review the procedures surrounding the verification process to ensure all necessary support and documentation is obtained and retained in the student files.
Views of Responsible Officials: Management agrees with the finding.