Finding Text
Federal Program Information: Student Financial Assistance Cluster (Various ALN #?s) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions ? Verification - 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 the Department of Education (?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 must (1) obtain acceptable documentation to verify the information required for the Verification Tracking Group to which the applicant is assigned; (2) match information on the documentation to the student aid application; (3) if necessary, submit data corrections to the central processor and recalculate awards; and (4) correctly code the student?s verification status in the Common Origination and Disbursement (?COD?) system for Pell Grants and Subsidized Direct Loans. Condition: Instance was identified where the College disbursed funds prior to completion of verification. Cause: Lack of administrative oversight with respect to verification. Effect: The College was not in compliance with verification requirements. Questioned Costs: None. Context: For 1 of 2 students selected for testing, the College disbursed funds prior to completion of verification and was not in compliance with the verification requirements. Identification as a Repeat Finding: This is a repeat finding of prior year finding 2021-004. Recommendation: We recommend the College implement policies and procedures for verifying applicant information prior to disbursing funds. Views of Responsible Officials and Planned Corrective Actions: The College acknowledges institutions are required to verify applications selected by the Central Processing System for students who will receive or have received need based/subsidized student financial assistance. As permitted in federal regulations (34 CFR 668.54(b)), verification is not required for students who are only eligible for unsubsidized student financial assistance. Students in this situation are noted as ?Selected, not verified? to COD. At Presbyterian College, graduate and professional students only receive unsubsidized federal financial assistance, so only those selected in the ?V4? and ?V5? verification groups are required to complete the verification requirements of these groups. The Office of Financial Aid has experienced significant turnover in its staffing during fiscal years June 30, 2021 and 2022. This included employing two different Directors, the second of which vacated the position in June 2022. The staffing of the Financial Aid Office has since stabilized and the new Director has implemented procedures for the 2023-2024 academic year through Banner (software) setup that prevents disbursement of federal aid with any outstanding fund or non-fund requirements. Any student with V1, V4, or V5 set on the ISIR will automatically populate outstanding requirements. Aid will not disburse until those are fully satisfied.