Finding Text
Federal Program Information: Student Financial Assistance Cluster: Federal Supplemental Education Opportunity Grants (Assistance Listing #84.007), Federal Work-Study Program (Assistance Listing #84.033), Federal Pell Grant Program (Assistance Listing #84.063), Federal Direct Loan Program (Assistance Listing #84.268)
Criteria or Specific Requirement: N. Special Test and Provisions – Verification - An institution shall require an applicant selected for verification to submit acceptable documentation that will verify or update the following information used to determine the applicant's EFC: adjusted gross income, U.S. income tax paid, aggregate number of family members in the household, number of family members in the household who are enrolled as at least half-time students in postsecondary educational institutions if that number is greater than one, and untaxed income subject to U.S. income tax reporting requirements in the base year which is included on the tax return form, excluding information contained on schedules appended to such forms. Untaxed income and benefits include: Social Security benefits if the institution has reason to believe that those benefits were received and were not reported or were not correctly reported; child support if the institution has reason to believe child support was received; U.S. income tax deductions for a payment made to an individual retirement account or Keough account; interest on tax-free bond; foreign income excluded from U.S. income taxation if the institution has reason to believe that foreign income was received; and all other untaxed income subject to U.S. income tax reporting requirements in the base year included on the tax return form, excluding information contained on schedules appended to such forms. (34 CFR section 668.56).
Condition: The University did not accurately verify all required information for 2 students.
Cause: Administrative oversight.
Effect or Possible Effect: Federal awards were not disbursed in accordance with federal regulations, and the University was not in compliance with verification compliance requirements.
Questioned Costs: None.
Context: For 2 of 15 students selected for verification testing, the University did not properly perform verification procedures.
Identification of Repeat Finding: No similar findings identified in the prior year.
Recommendation: We recommend that the University enhance its procedures to ensure appropriate verification procedures are performed for all students who are selected for verification unless excluded by federal regulations.
Views of Responsible Officials: The University has reviewed its current verification practices. As a result, the Office of Financial Aid will enhance its policies and procedures to ensure accurate verification outcomes. These enhancements will include additional training for financial aid counselors through both internal and external resources, the implementation of the NASFAA Tax Transcript Decoder documentation, and periodic secondary reviews.