Finding Text
2022-003. FINDING Failure to Obtain Student Verification Documents Federal Agency: U.S. Department of Education Assistance Listing Numbers: 84.063; 84.268 Program Names: Student Financial Assistance Cluster - Federal Pell Grant Program Federal Direct Student Loans Program Expenditures: $4,213,853; $20,166,174 Award Numbers: P063P211351; P268K221351 Questioned Costs: None The Chicago State University (University) did not obtain and review student verification documents. For Academic Year 2021-2022, the Department of Education waived the verification of most Free Application for Federal Student Aid (FAFSA) information, except for Identity/Statement of Educational Purpose and High School Completion Status. During testing of 25 students selected for verification, we noted the University did not obtain supporting documentation to verify the identity of two (8%) students. The sample methods used in performing this testing were not statistically valid. The Federal Student Aid Publication (GEN-21-05) ? Changes to 2021-2022 Verification Requirements, dated July 13, 2021, waived verification of information of students applying for financial assistance except for verification of documents for Identity/Statement of Educational Purpose and High School Completion Status of certain verification groups. Additionally, the Uniform Guidance (2 CFR ? 200.303) requires nonfederal entities receiving federal awards to establish and maintain effective internal control designed to reasonably ensure compliance with federal laws, statutes, regulations, and the terms and conditions of the federal award. University management indicated the failure to obtain verification documents was due to oversight. Failure to obtain verification documents in accordance with federal regulations may result in students receiving awards for which they are ineligible and the University incurring unallowable costs. (Finding Code No. 2022-003) 2022-003. FINDING Failure to Obtain Student Verification Documents (Continued) RECOMMENDATION We recommend the University ensure student verification documents are obtained, reviewed, and maintained. UNIVERSITY RESPONSE The University agrees with the finding and is developing a corrective action plan for implementation.