Finding Text
Finding 2024-003 – N. Special Tests and Provisions – Verification
Information on Federal Program(s) - Student Financial Assistance Cluster (Federal Assistance Listing #84.007, #84.033, #84.063, #84.268)
Criteria or Specific Requirement – 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 expected family contribution: 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 Institute did not accurately verify all required information for a student.
Cause – Administrative oversight in internal controls over required verification procedures.
Effect or Potential Effect – The Institute was not in compliance with the verification requirements.
Questioned Costs – Below reportable threshold.
Context:
• For 1 of 6 students selected for the Institute did not perform appropriate verification procedures including the verification of certain tax return information.
Indication of Repeat Finding – No similar finding noted in the prior year.
Recommendation – We recommend that the Institute enhance its procedures and internal controls to ensure appropriate verification procedures are performed for all students who are selected for verification.
Views of Responsible Officials – The Institute agrees with the finding and is aware of the regulation that governs verification of Title IV Federal Student aid application set forth in 34 CFR Part 668 (34 CRF 668.56).
The student’s record in questioned was verified and properly disbursed, the parent tax return that was prepared by a tax preparer left blank a line item regrading IRA deductions and payments and no schedule was prepared by the preparer as such this line item was not properly verified.
The Financial Aid Office has updated its policy and procedures to institute a two factor review system on students selected for verification. The first check will be completed by the Senior Financial Aid Counselor, and second and final look is completed by the Director of Financial Aid.