> **File Review Exercise**
>
> We recommend that you randomly select files that you verified. We
> suggest 10 independent\
> and 10 dependent records for the current year. You may also want to
> review previous years of your choosing.
>
> Use the worksheets below (independent or dependent) and review the
> files to determine if verification was performed correctly.
>
> If you identify any errors, we recommend that you evaluate your
> process and complete the [Management Enhancement
> Worksheet.](http://ifap.ed.gov/qahome/mgtenhancementwk.html)
>
> **Independent Student Worksheet for Verification File Review**
>
> **\* Certain untaxed income and benefits. You must also verify all
> other untaxed income**
>
> **reported on the U.S. individual income tax return.**
>
> **\*\* Other is for a school to identify as an discretionary item that
> the institution selects\
> for verification. (An institutional verification policy.)**
>
> **Dependent Student Worksheet for Verification File Review**

##### Parental Information

+----------------------+-------------+---------------+---------------+
| # Requir             | > Original  | > Verified    | > Difference  |
| ed Verification Item | > ISIR      | > Data        |               |
+----------------------+-------------+---------------+---------------+
| # Household size     |             |               |               |
+----------------------+-------------+---------------+---------------+
| Number in college    |             |               |               |
+----------------------+-------------+---------------+---------------+
| Adjusted Gross       |             |               |               |
| Income               |             |               |               |
+----------------------+-------------+---------------+---------------+
| U.S. taxes paid      |             |               |               |
+----------------------+-------------+---------------+---------------+
| Social Security      |             |               |               |
| benefits\*           |             |               |               |
+----------------------+-------------+---------------+---------------+
| Child support\*      |             |               |               |
+----------------------+-------------+---------------+---------------+
| IRA/Keogh            |             |               |               |
| deductions\*         |             |               |               |
+----------------------+-------------+---------------+---------------+
| Foreign income       |             |               |               |
| exclusion\*          |             |               |               |
+----------------------+-------------+---------------+---------------+
| Earned Income        |             |               |               |
| Credit\*             |             |               |               |
+----------------------+-------------+---------------+---------------+
| Interest on tax-free |             |               |               |
| bonds\*              |             |               |               |
+----------------------+-------------+---------------+---------------+
| Other\*\*            |             |               |               |
+----------------------+-------------+---------------+---------------+
| Other\*\*            |             |               |               |
+----------------------+-------------+---------------+---------------+
| Other\*\*            |             |               |               |
+----------------------+-------------+---------------+---------------+
| Other\*\*            |             |               |               |
+----------------------+-------------+---------------+---------------+

### Student Information

+---------------------+---------------+----------------+--------------+
| # Require           | > Original    | > Verified     | Difference   |
| d Verification Item | > ISIR        | > Data         |              |
+---------------------+---------------+----------------+--------------+
| Household size      |               |                |              |
+---------------------+---------------+----------------+--------------+
| Number in college   |               |                |              |
+---------------------+---------------+----------------+--------------+
| Adjusted Gross      |               |                |              |
| Income              |               |                |              |
+---------------------+---------------+----------------+--------------+
| U.S. taxes paid     |               |                |              |
+---------------------+---------------+----------------+--------------+
| Social Security     |               |                |              |
| benefits\*          |               |                |              |
+---------------------+---------------+----------------+--------------+
| Child support\*     |               |                |              |
+---------------------+---------------+----------------+--------------+
| IRA/Keogh           |               |                |              |
| deductions\*        |               |                |              |
+---------------------+---------------+----------------+--------------+
| Foreign income      |               |                |              |
| exclusion\*         |               |                |              |
+---------------------+---------------+----------------+--------------+
| Earned Income       |               |                |              |
| Credit\*            |               |                |              |
+---------------------+---------------+----------------+--------------+
| Interest on         |               |                |              |
| tax-free bonds\*    |               |                |              |
+---------------------+---------------+----------------+--------------+
| Other\*\*           |               |                |              |
+---------------------+---------------+----------------+--------------+

> **\* Certain untaxed income and benefits. You must also verify all
> other untaxed income**
>
> **reported on the U.S. individual income tax return.**
>
> **\*\* Other is for a school to identify as an discretionary item that
> the institution selects\
> for verification. (An institutional verification policy.)**

## Tolerance

> There is no tolerance for non-dollar items. If there are changes to
> family size or number in college, the ISIR must be corrected.
>
> The tolerance for dollar items is \$400. If the net difference between
> the original and correct data is more than \$400, the information must
> be corrected. To calculate the net difference, first add the original
> (uncorrected) AGI and untaxed income amounts. From that amount,
> subtract the original U.S. income tax paid to get the uncorrected
> total. Then, add the correct AGI and untaxed income amounts and
> subtract from that total the correct U.S. income tax paid to get the
> corrected total.
>
> **Tolerance Equation**

+-----------------------------------------------------------------------+
| (Original AGI)+(Original untaxed income and benefits)-(Original U.S.  |
| income tax paid)=(Uncorrected total)                                  |
|                                                                       |
| (Correct AGI)+(Correct untaxed income and benefits)-(Correct U.S.     |
| income tax paid)=(Corrected total)                                    |
+-----------------------------------------------------------------------+

> If the difference between the uncorrected total and the corrected
> total is \$400 or less (and there are only dollar amount errors) the
> errors are within tolerance and recalculation is not required. You do
> not have to use the tolerance option - you can always have the student
> submit corrections for reprocessing.