Volume IV of a study of program management procedures in the campus-based and Basic Educational Opportunity Grant (BEOG) programs deals with a set of simulated modifications in the statements made by BEOG applicants about their financial circumstances. Various kinds of misrepresentation of income, assets, and other factors are postulated, and the effects of these statements on the BEOG program are estimated, using a computer-based model originally developed by HEW to provide forward estimates of program costs for Congress. Chapter discussions include an introduction, the baseline that establishes a relevant and consistent reference point for comparative purposes, and the simulations of variations in applicants' financial statements. The concluding chapter reports some of the findings: as many as 25 percent of applicants misreport income by understating it by $250 or more; students tend to understate actual income because many work for cash and are not required to file an income tax return; and evidence supports the continuing efforts of the U.S. Office of Education to validate income statements for the program. Tables include the effects of distortions and overstatement in areas such as student income, family assets, dependent students' contributions, unusual expenses, number of dependents, and number of siblings enrolled in colleges. (LC)