Our objectives were to determine whether Bais HaMedrash and Mesivta of Baltimore (1) applied and documented its use of professional judgment in accordance with section 479A of the Higher Education Act of 1965, as amended (HEA), and (2) reported its use of professional judgment in accordance with the Application and Verification Guide.
Bais HaMedrash and Mesivta of Baltimore did not apply professional judgment in accordance with section 479A of the HEA for 80 percent of the students for whom it applied professional judgment for award years reviewed. Further, the school did not document its use of professional judgment in accordance with section 479A of the HEA for 57 percent of the students for whom it applied professional judgment for award years reviewed. Finally, the school reported its use of professional judgment in accordance with the Application and Verification Guide for 97 percent of the students for whom it applied professional judgment for award years reviewed. We made a number of recommendations to address the issues identified, including that FSA take appropriate action pursuant to subpart G of Title 34 Code of Federal Regulations Part 668 for the extensive instances of noncompliance with the HEA.
We made three recommendations: (1) that Bais HaMedrash and Mesivta of Baltimore return to the Department more than $155,800 in Pell grant funds; (2) that it provide records adequately documenting that it applied professional judgment in accordance with the HEA for the 37 students for whom we were not provided records substantiating their special circumstances or return to the Department more than $80,300 in improper Pell payments; and (3) that FSA take appropriate administrative action against the school for its extensive instances of noncompliance with the HEA.
Oversight and Monitoring—Student Financial Assistance Programs
See other OIG reports on professional judgment.