Current through Register Vol. 54, No. 44, November 2, 2024
(a) The
staff of the Agency will extract a random sample of all accounts at an
institution that is undergoing a review of its program administration.
Institutions will then be categorized according to their error rate in
administration of State grants as follows:
(1)
Error rate of 4.0% or less. This is an acceptable rate
signifying that the institution is complying with PHEAA grant program
guidelines. It will be assumed that the discrepancies found had been caused by
a misinterpretation of the guidelines or by a mistake on the part of the
financial aid officer or staff of the institution. No further action will be
required other than a letter to the institution identifying the discrepancies
and requesting a refund of those awards for ineligible higher education grant
recipients identified in the sample.
(2)
Error rate of 4.1%-8.9%.
This rate indicates repeated failure to comply with certain program guidelines
or that somewhat general discrepancies exist within the internal control of the
institution as it applies to financial aid. The Agency will request a refund on
behalf of those ineligible higher education grant recipients identified in the
sample. A letter will be sent to the institution pointing out the problems and
recommending necessary action to be taken by the institution with the
stipulation that within 12 to 18 months a followup review will be conducted, at
which point in time the calculated error rate is expected to be within the
acceptable range. If, at this time, the error rate is not acceptable, a
decision will be made regarding whether or not the institution shall continue
to receive grant disbursements and as to whether or not a review based on a
valid statistical sample is required.
(3)
Error rate of 9% or more.
This rate indicates that serious weaknesses or the possibility of
fraud exists within the institution's administration of the program. The Agency
will schedule a program followup to be conducted at the earliest possible date.
All disbursements to the institution may be withheld pending the results of the
follow-up review. The followup review will be based on a valid statistical
sample which will be prepared by the Agency. This valid statistical sample will
identify the accounts to be evaluated in the follow-up review. The Agency will
request a refund for those higher education grant recipients identified as
refund cases during the initial and follow-up reviews and make a determination
as to the continued eligibility of the institution for PHEAA's programs of
student financial assistance.
(b) The Agency may conduct further
examinations of student aid and related records as it deems necessary to
protect the financial interests of the Agency or its student aid
recipients.
The provisons of this §121.59 issued under the act of
August 7, 1963 (P. L. 549, No. 290) (24 P. S. §
5104); the act of January 25, 1966 (P. L.
1546, No. 541) (24 P. S. §
5151); the act of
October 11, 1972 (P. L. 909, No. 216) (24 P. S. §
5171); and the act of October 11, 1972 (P. L.
899, No. 213) (24 P. S. §
5161).
