Finding Text
Student Financial Assistance Cluster U.S. Department of Education Federal Direct Student Loans 84.268 Award Year 2022 Criteria or Specific Requirement - Special Tests and Provisions, Verification. In accordance 34 CFR 668.51 through 338.61, 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. Additionally, in accordance with Title 2 CFR 200.303, a non-federal entity must establish and maintain effective internal control over the federal award that provides reasonable assurance that the non-federal entity is managing the federal award in compliance with federal statutes, regulations, and the terms and conditions of the federal award. Condition - A verification checklist is used by management to validate that a preparer and reviewer both formally signed off on the verification work. For one student selected there was no information regarding their tax returns or supporting schedules for required verification data. Questioned Costs - None Context - Out of a population of 87 students that were selected by ED for verification, a sample of 14 students was selected for testing. One of the 14 students selected for testing did not have records supporting the required verification procedures. The sample was not, and was not intended to be, a statistically valid sample. Effect - College records did not support that the verification was performed for one student. Cause - Management oversight of the control in place. Identification as a Repeat Finding - No Recommendation - Assigned reviewers of the verification worksheet should review for and ensure that all supporting documentation is included within the file. Views of Responsible Officials and Planned Corrective Actions - This was neglected and documents missing due to staffing issues and high turnover. Verification is completed for enrolled students as soon as their ISIR is available to Donnelly through Empower. Verification worksheets are completed by the student and verified by the FA staff as required by DOE (per FSA handbook). All student documents are kept in student's file in the FA office locked cabinet.