Inspector General Finds FSA Did Not Effectively Implement FTI Provisions in New FAFSA
By Maria Carrasco, NASFAA Staff Reporter
The Office of Federal Student Aid (FSA) missed key steps when implementing federal tax information (FTI) provisions through the Student Aid and Borrower Eligibility Reform (SABER) initiative, according to a new audit from the Department of Education’s (ED) Office of Inspector General (OIG).
The audit, which was published on Wednesday, claimed that FSA did not effectively implement four FTI-related SABER systems — data exchange, FTI SAIG, FTI infrastructure, and FTI module. For example, the audit noted that FSA did not have sufficient evidence for establishing and monitoring project costs and budgets related to implementing FTI provisions.
Further, the audit found that FSA missed key steps for contractor oversight. Specifically, the OIG wrote that oversight processes both from FSA’s contracting officer’s representative and ED were not always completed for FTI SAIG, FTI infrastructure, and the FTI module.
And while FSA did have policies and procedures to identify and monitor risks with the implementation of FTI-related systems through its SABER initiative, there were key risk and decision management tools that FSA had established but did not always complete, OIG wrote.
OIG also noted that while FSA faced numerous issues rolling out the 2024-25 FAFSA, those issues are not part of the audit. The focus of the audit was on FSA’s system implementation activities to support its ability to use and protect FTI received directly from the IRS as part of the FAFSA Simplification Act and FUTURE Act.
“Not performing key steps established for effective system implementation increases the risks of project cost overruns; contractors not providing deliverables timely or being paid for deliverables that were never produced; and risks, problems, and questions going unaddressed and important historical information on related decisions being lost,” OIG wrote in the report.
ED’s OIG left six recommendations for FSA to implement FTI provisions, including fixing technical issues and more oversight of FSA contractors.
Former FSA Chief Operating Office Richard Cordray — who left his position in June — responded to OIG’s recommendations in the audit report. Cordray wrote that as a result of this audit, he had directed FSA senior leadership to establish a working group to identify potential improvements to FSA’s project management guidance and practices. He also reiterated the challenges FSA has faced implementing FAFSA simplification due to budget constraints.
“Rolling out all aspects of the Better FAFSA, including especially the new cybersecurity standards needed to safeguard the Federal Tax Information that is being imported into the FAFSA process from the Internal Revenue Service, has proven challenging,” Cordray wrote. “But we know that once we have gotten this right, we will be better able to open countless doors of opportunity and transform our student financial aid system for generations to come.”
Publication Date: 8/5/2024
William M | 8/7/2024 11:26:59 AM
This is shocking.
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