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Report File
Date Issued
Submitting OIG
Department of Education OIG
Other Participating OIGs
Department of Education OIG
Agencies Reviewed/Investigated
Department of Education
Components
Federal Student Aid
Report Number
A20IL0007
Report Description

The objectives of our audit were to determine whether the University of Southern California (1) applied and documented its use of professional judgment, including dependency override, in accordance with sections 479A and 480(d) of the Higher Education Act of 1965, as amended and (2) reported its use of professional judgment, including dependency override, in accordance with the Federal Student Aid Handbook, Application and Verification Guide. This was the third in a series of audits on this subject. Prior two audits can be found here: https://oig.ed.gov/search?keys=professional+judgment.

Report Type
Audit
Location

CA
United States

Number of Recommendations
6
Questioned Costs
$0
Funds for Better Use
$0

Open Recommendations

This report has 6 open recommendations.
Recommendation Number Significant Recommendation Recommended Questioned Costs Recommended Funds for Better Use Additional Details
1.1 Yes $0 $0

We recommend that the Chief Operating Officer for Federal Student Aid (FSA) require USC to— 1.1 Calculate the actualamount of improper Pell and any other Title IV payments made to the 13 students for whom it did not apply professionaljudgment other than dependency override in accordance with section 479A of the HEA and return those funds to theDepartment.

1.2 Yes $0 $0

We recommend that the Chief Operating Officer for Federal Student Aid (FSA) require USC to— 1.2 Review its records forthe 6,062 students for whom the school reported that it applied professional judgment other than dependency override foraward year 2019–2020 or award year 2020–2021 but were not included in our sample and (a) identify those students forwhom it improperly adjusted the value of data items affecting AGI based on allowances or expenses unrelated to specialcircumstances, (b) provide FSA with a listing of the improperly disbursed Title IV funds and the records associated withthose students for whom financial aid administrators improperly applied professional judgment, and (c) return theimproperly disbursed Title IV funds to the Department.

2.1 Yes $0 $0

We recommend that the Chief Operating Officer for FSA require USC to— 2.1 Review its records for the 6,162 studentsfor whom the school reported that it applied professional judgment other than dependency override for award year2019–2020 or 2020–2021; identify records adequately documenting the use of professional judgment; and provide therecords for any students with inadequately documented professional judgment to FSA along with a listing of the amount ofTitle IV funds, if any, that were improperly awarded and disbursed to students.

3.1 Yes $29,900 $0

We recommend that the Chief Operating Officer for FSA require USC to— 3.1 Provide additional records that adequatelydocument the financial aid administrators’ determinations of independence for the six students or return to the Department$3,700 in Pell funds and $26,200 in Direct Loan funds.

3.2 Yes $0 $0

We recommend that the Chief Operating Officer for FSA require USC to—Review its records for the 81 students notincluded in our sample; identify records adequately documenting the financial aid administrators’ determinations ofindependence; and provide the records for any students with inadequately documented dependency override to FSA alongwith a listing of the amount of Title IV funds, if any, that the school improperly awarded and disbursed to the students.

4.1 Yes $0 $0

We recommend that the Chief Operating Officer for FSA require USC to— 4.1 Develop and implement procedures forconfirming that its student information system data are corroborated by its financial assistance records before reportingthe use of professional judgment to the Department’s Central Processing System.

Department of Education OIG

United States