Transcript A2 PreparingForAnAuditOrProgramReview

Preparing for an Audit or
Program Review
April 17, 2011
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Agenda
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Types of Audits
What to Expect During an Audit?
What will Auditors Request?
Resolving Findings & Corrective Action
How to Prepare?
Common Findings
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What types of audits are
there?
How to Prepare?
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Types of Audits/Reviews
» A-133
» Public & Non-Profit Institutions
» Single Audit Act
» OMB Circular A-133
» FSA Audit
» All other Institutions (For-Profit)
» Audit Guide
» Federal Program Review
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Compliance Audit
» Compliance Audit
» Annual audit of the school’s compliance
with the laws and regulations that are
applicable to the FSA programs in which
the school participates
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Financial Statement Audit
» Financial Statement Audit
» Annual audit of the school’s financial
statements
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What should I expect
during an audit?
How to Prepare?
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The Audit Process
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Entrance Conference
Auditors Analysis
Exit Conference
Final Report
Corrective Action Plan
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Before They Arrive
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Notify Leadership & Relevant Depts.
Retrieve & Send Requested Information!
Set Expectations
Notify IT if Access to SIS is Required
» Ensure Auditors will have Access Timely
» Set Access Appropriately
» Designate a “Point Person”
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Entrance Conference
» Include Relevant Departments
» Financial Aid, Student Accounts, IT
» Registrar, Admissions, Student Employment
» Introduce the “Point Person”
» Designate a quiet work area
» Train on the Student Info System
» Provide Instructions
» Explain File Retrieval Process
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What documents will
the auditors request?
How to Prepare?
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Document Requests
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Policies & Procedures Manual
Sample FSA Forms
Catalog
Cost of Attendance Budgets
FISAP
SAP Policy
Pell Account Information
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Document Requests
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Refund Policy
Return to Title IV Process
ISIRs for Sample
Documentation of Cash Management
PPA & ECAR
Latest Accreditation
Software Used
Campus Security Report
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What will the
auditors ask?
How to Prepare?
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Anticipate Common Questions
» Who monitors disbursements?
» Who tracks withdrawals?
» Who tracks changes in Enrollment
Status?
» Who performs Return to Title IV?
» Who updates the Policies & Procedures?
» Who ensures aid is properly disbursed?
» Who ensures Verification is complete?
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Exit Conference
» Include Relevant Departments
» Financial Aid
» Student Accounts
» Registrar
» Student Employment
» IT etc.
» Listen to Results
» Ensure All Findings are Discussed
» Ask Questions to Prepare for Response
» Discuss Next Steps and Timing
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Respond to Findings
» Do you Agree with the Finding?
» If Yes, take Corrective Action
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Resolve findings as quickly as possible
Modify P&P Manual as needed
Communicate to Affected Departments
Conduct Training on Changes
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Respond to Findings
» Do you Disagree with the Finding?
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It is Okay to Disagree
Check the Regulations
Consult with Trusted Peers
Respond with your position
» Include details outlining your issue
» Include reference to Regulations
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Corrective Action Plan
» Written Plan
» Outlines steps to resolve issues
» Identify the Finding & Resolution
» Follow the CAP
» Develop/Refine Procedures
» Assign Responsible Parties
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How to Prepare?
How to Prepare?
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How to Prepare
» Good Inter-Office Communication
» If Processes, Policies, Systems Change
» Set a Meeting, Huddle, Let Everyone Know
» Explain the implications of changes
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How to Prepare
» Keep Your Files Organized & Consistent
» Paper Files
» Group by Award Year
» Checklist Cover Letter
» Notes
» Electronic Files
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How to Prepare
» Keep Your Policies & Procedures Current
» Schedule Periodic Check Points to Update
» Test Procedures to Ensure they Work!
» Verify Staff is following Policies
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How to Prepare
» Strengthen Internal Controls
» Assign Responsibilities
» Create Checks and Balances
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How to Prepare
» Leverage Student Information System
» Run Reports
» Check for Anomalies
» Cross Check with Other Departments
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How to Prepare
» Invest in your staff
» Online Training
» Conferences
» Workshops
» P&P Manual Training
» NASFAA CORE
» FSA Coach
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How to Prepare
» Internal Audit
» Manage Institutional Risk
» Test Compliance Activities
» NASFAA Self Evaluation Guide
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Most Common Findings?
How to Prepare?
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10 Most Common Audit Findings
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R2T4 Calculation Errors
Pell Overpayment/Underpayment
Late Return of Title IV Funds
Verification Violations
Overaward- Financial Need Exceeded
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10 Most Common Audit Findings Cont.
6. Return of Title IV Funds Not Made
7. Enrollment Status not Verified prior to
Disbursement
8. Improper certification of Stafford Loans
9. Student Credit Balance Deficiencies
10. Ineligible Student- Not Meeting SAP
11. Repeat Finding- failure to take
Corrective Action
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10 Most Common
Program Review Findings
1. Verification Violations
2. Crime Awareness Requirements Not
Met
3. Student Credit Balance Deficiencies
4. Return to Title IV Calculation Errors
5. Return of Title IV Funds Made Late
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Program Review Findings
6. Entrance/Exit Counseling Deficiencies
7. Account Records Inadequate/Not
Reconciled
8. Information in Student Files
Missing/Inconsistent
9. SAP Policy not Adequately
Developed/Monitored
10.Pell Overpayment/Underpayment
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Findings on Both Lists
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Verification Violations
Return of Title IV Funds Made Late
Return of Title IV Calculation Errors
Pell Grant Over/Underpayments
Student Credit Balance Deficiencies
Satisfactory Academic Progress Issues
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Let’s Review
How to Prepare?
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Let’s Review!
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Types of Audits
What to Expect During an Audit?
What will Auditors Request?
Resolving Findings & Corrective Action
How to Prepare
Common Findings
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Jeff Scofield
Director of Financial Aid
University of Hawaii- Hilo
[email protected]
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Chesa Stanfield
Director of Solutions
Global Financial Aid Services
[email protected]
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