VERIFICATION TASFAA 2012 ABC Workshop Joseph Ruiz Assistant Director Office of Student Financial Assistance Application & Verification Guide (AVG) 1

VERIFICATION TOPICS  Policies and procedures  Whose application must be verified  Which data elements must be verified  Acceptable documentation  Data element corrections  Data element updates  Verification time frames 2

VERIFICATION  Process of verifying accuracy of FAFSA data  Regulations define:  Whose application must be verified (AVG-76)  Data elements to be verified (AVG-78-80)  Documentation used to verify data elements (AVG-81)  Regardless of verification selection, must always resolve discrepancies and conflicting information 3

VERIFICATION POLICIES AND PROCEDURES Must :  Be written  Address school options where flexibility exists  Be made clear to all students  Be consistently applied (AVG-75) 4

VERIFICATION POLICIES AND PROCEDURES Must include:  Procedures for identifying and processing selected applications  Deadline for applicant to provide documentation  Consequences of failure to meet deadline  Procedures applicant must follow to correct application information  Method for notifying applicant of verification results and change in EFC and/or award  Procedures for referring overpayments to ED  Procedures for referring cases of suspected fraud or other criminal misconduct to ED Office of Inspector General (Take it to your Director) (AVG-75) 5

WHOSE APPLICATION MUST BE VERIFIED?  Applicants selected by Central Processing System (CPS)  Applicants selected by institution 6

PROGRAMS TO WHICH VERIFICATION APPLIES  Federal Pell Grant  Campus-based programs  Subsidized Direct Loan program 7

INSTITUTIONALLY-SELECTED APPLICATIONS  Institution can select additional applications not selected by CPS  Selection may be based on such data elements as:  Estimated tax figures  Low family income levels  Large household size or number in college  Completion of certain FAFSA data elements  Other institutional criteria 8

REQUIRED VERIFICATION DATA  Household size  Number enrolled in college  Adjusted gross income (AGI)  U.S. income tax paid, and  Child Support Paid  SNAP (Supplemental Nutrition Program) (AVG-78) 9

REQUIRED VERIFICATION DATA ELEMENTS 10  Tax-exempt interest income  Deductible IRA or Keogh payments  Untaxed IRA distributions and pension or annuity payments  Education Tax Credits (AVG-19) Other untaxed income and benefits on the tax return

ACCEPTABLE SOURCES OF DOCUMENTATION  IRS tax transcript listing tax return information  Signed Verification Worksheet - Please notice the age of the independent students that are submitting a verification worksheet. There are 13 responses that will can make a student independent under the age of 24. o Tax Transcripts for -Parents and dependent students-Independent students-compare names and check tax year on all transripts o 11

DOCUMENTATION CONTINUED  Supporting c-flag documentation -Please only accept a completed file -Veteran Status DD214 o Selective service -Males must register and females need a birth certificate o Citizenship-Pass Port Certificate of naturalization Permanent Resident Card Birth Certificate Certificate of Citizenship 12

CHILD SUPPORT DOCUMENTATION Obtain verification worksheet or written statement certifying amount of child support received for all children  Statement must be signed by applicant and at least one parent (if dependent)  Statement must be signed by applicant if independent  If support paid through government agency, statement from that agency is acceptable ( AVG -82) 13

CHILD SUPPORT DOCUMENTATION Request additional documentation if information provided appears inaccurate  Copy of separation agreement or divorce decree  Signed statement from parent providing support  Copies of canceled child support checks or money order receipts (AVG-82-83) 14

NUMBER IN HOUSEHOLD & IN COLLEGE  Verification worksheet listing each household member’s:  Name  Age  Relationship to applicant  Postsecondary school (if any) attending at least half-time in program leading to recognized educational credential (AVG ) 15

VERIFICATION UPDATES  Changes to data elements that were correct at time of application but have since changed  Applicable only to 3 items:  Dependency status  Number in household  Number of household members enrolled in college  Marital Status Discrepancy Case by Case Basis (AVG 84-85) 16

VERIFICATION UPDATES Number in Household and Number in College  If selected, data must be accurate as of verification  If not selected, student can select their file to be selected  If not selected, not required to monitor data element change (AVG-85) 17

VERIFICATION AND BEYOND  Schools must verify all cases selected. The 30% cap has been eliminated.  Tolerance levels for dollar items has been eliminated. Instead, all changes must be submitted to the CPS for reprocessing if the change is $25 or more. All non- dollar item changes (e.g. household size/number in college) must also be submitted.  The regulations now clarify that verification must be completed on selected applications (if selected by the CPS or the school) before a school may exercise Professional Judgment. The results of verification & PJ changes cannot be submitted on the same day.  Conflicting documentation -- regardless of verification -- must still be resolved. 18

AVAILABLE RESOURCES  Federal Student Aid Handbook  Application and Verification Guide  Institutional Policies and Procedures  IRS Publication 17 found at 19