Finding 39338 (2022-002)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-14

AI Summary

  • Core Issue: One student selected for verification was not properly verified, as their incomplete packet was incorrectly marked as complete by the financial aid department.
  • Impacted Requirements: The institution must follow federal regulations for verifying applicant information, ensuring all required documentation is complete before marking verification as complete.
  • Recommended Follow-Up: Management should consistently enforce verification policies and conduct thorough monitoring reviews to catch errors and ensure compliance with federal requirements.

Finding Text

Criteria: An institution is required to establish written policies and procedures that incorporate the provisions of 34 CFR 668.51 through 668.61 for verifying applicant information for those applicants selected for verification by ED. The institution shall require each applicant whose application is selected by ED to verify the information required for the Verification Tracking Group to which the applicant is assigned. However, certain applicants are excluded from the verification process as listed in 34 CFR 668.54(b). The institution shall also require applicants to verify any information used to calculate an applicant?s EFC that the institution has reason to believe is inaccurate and provide an accurate code for the individual?s verification status in the Common Origination and Disbursement (COD) system. (34 CFR 668.54(a); FSA Handbook Application and Verification Guide, Chapter 4). For the 2021-2022 processing year, the requirement for verification of most Free Application for Federal Student Aid/Institutional Student Information Record (FAFSA?/ISIR) information was waived by ED due to COVID-19, except for Identity/Statement of Educational Purpose and High School Completion Status under Verification Tracking Groups V4 and V5, as outlined in Dear Colleague Letter GEN-21- 05. However, this waiver does not exempt institutions from resolving conflicting information if concerns arise. Condition: One out of the six students selected for V4 (Custom Verification Group) was not verified. The verification packet was returned incomplete from the student; however the University?s financial aid department marked the verification as being complete. Context: The selected student?s verification packet was incomplete but was marked as complete by the University. Cause: The University?s financial aid team received the V4 Verification Worksheet from the student. The V4 Verification Worksheet requires the student to fill out certain personal information, a statement of educational purpose (provided in person, or notarized), and proof of high school completion. In the selected instance, the student did not fill out the statement of educational purpose portion of the verification packet. Upon return of the form, it was reviewed and approved by university staff within the system, despite the supporting packet being incomplete. Effect: Verification of selected students was not completed. Questioned costs: None. Repeat Finding: No. Recommendation: We recommend that management adheres consistently to its policies around the verification of student information to ensure compliance with verification requirements. We further recommend that management perform a monitoring review for the list of students selected for verification at a level of precision that would identify any errors or instances of noncompliance with federal requirements and that this review be documented. Views of Responsible Officials: As discussed in Note A to the financial statements, the University merged with and into Saint Joseph?s University on June 1, 2022.

Corrective Action Plan

As discussed in Note A to the financial statements, the University merged with and into Saint Joseph?s University on June 1, 2022.

Categories

Subrecipient Monitoring Special Tests & Provisions

Other Findings in this Audit

  • 615780 2022-002
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $33.73M
93.342 Health Professions Student Loans, Including Primary Care Loans/loans for Disadvantaged Students $4.20M
84.425 Education Stabilization Fund $2.04M
84.063 Federal Pell Grant Program $1.98M
84.038 Federal Perkins Loan Program $1.87M
84.007 Federal Supplemental Educational Opportunity Grants $299,696
84.033 Federal Work-Study Program $235,023
98.001 Usaid Foreign Assistance for Programs Overseas $151,895
93.866 Aging Research $110,164
93.859 Biomedical Research and Research Training $97,135
93.279 Drug Abuse and Addiction Research Programs $85,444
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $72,398
47.074 Biological Sciences $58,509
93.286 Discovery and Applied Research for Technological Innovations to Improve Human Health $48,349
47.049 Mathematical and Physical Sciences $33,034
93.398 Cancer Research Manpower $31,897
93.855 Allergy, Immunology and Transplantation Research $27,400
93.350 National Center for Advancing Translational Sciences $16,622
93.394 Cancer Detection and Diagnosis Research $12,858
93.865 Child Health and Human Development Extramural Research $7,259
93.847 Diabetes, Digestive, and Kidney Diseases Extramural Research $1,436