1. Preparing for an Audit or Program Review April 17, 2011 © 2011 Global Financial Aid Services 1

2. Agenda »Types of Audits »What to Expect During an Audit? »What will Auditors Request? »Resolving Findings & Corrective Action »How to Prepare? »Common Findings © 2011 Global Financial Aid Services 2

3. How to Prepare? © 2011 Global Financial Aid Services 3 What types of audits are there?

4. 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 © 2011 Global Financial Aid Services 4

5. 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 © 2011 Global Financial Aid Services 5

6. Financial Statement Audit »Financial Statement Audit »Annual audit of the school’s financial statements © 2011 Global Financial Aid Services 6

7. How to Prepare? © 2011 Global Financial Aid Services 7 What should I expect during an audit?

8. The Audit Process »Entrance Conference »Auditors Analysis »Exit Conference »Final Report »Corrective Action Plan © 2011 Global Financial Aid Services 8

9. Before They Arrive »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” © 2011 Global Financial Aid Services 9

10. 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 © 2011 Global Financial Aid Services 10

11. How to Prepare? © 2011 Global Financial Aid Services 11 What documents will the auditors request?

12. Document Requests »Policies & Procedures Manual »Sample FSA Forms »Catalog »Cost of Attendance Budgets »FISAP »SAP Policy »Pell Account Information © 2011 Global Financial Aid Services 12

13. Document Requests »Refund Policy »Return to Title IV Process »ISIRs for Sample »Documentation of Cash Management »PPA & ECAR »Latest Accreditation »Software Used »Campus Security Report © 2011 Global Financial Aid Services 13

14. How to Prepare? © 2011 Global Financial Aid Services 14 What will the auditors ask?

15. 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? © 2011 Global Financial Aid Services 15

16. 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 © 2011 Global Financial Aid Services 16

17. Respond to Findings »Do you Agree with the Finding? »If Yes, take Corrective Action »Resolve findings as quickly as possible »Modify P&P Manual as needed »Communicate to Affected Departments »Conduct Training on Changes © 2011 Global Financial Aid Services 17

18. Respond to Findings »Do you Disagree with the Finding? »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 © 2011 Global Financial Aid Services 18

19. Corrective Action Plan »Written Plan »Outlines steps to resolve issues »Identify the Finding & Resolution »Follow the CAP »Develop/Refine Procedures »Assign Responsible Parties © 2011 Global Financial Aid Services 19

20. How to Prepare? © 2011 Global Financial Aid Services 20 How to Prepare?

21. How to Prepare »Good Inter-Office Communication »If Processes, Policies, Systems Change »Set a Meeting, Huddle, Let Everyone Know »Explain the implications of changes © 2011 Global Financial Aid Services 21

22. How to Prepare »Keep Your Files Organized & Consistent »Paper Files »Group by Award Year »Checklist Cover Letter »Notes »Electronic Files © 2011 Global Financial Aid Services 22

23. 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 © 2011 Global Financial Aid Services 23

24. How to Prepare »Strengthen Internal Controls »Assign Responsibilities »Create Checks and Balances © 2011 Global Financial Aid Services 24

25. How to Prepare »Leverage Student Information System »Run Reports »Check for Anomalies »Cross Check with Other Departments © 2011 Global Financial Aid Services 25

26. How to Prepare »Invest in your staff »Online Training »Conferences »Workshops »P&P Manual Training »NASFAA CORE »FSA Coach © 2011 Global Financial Aid Services 26

27. How to Prepare »Internal Audit »Manage Institutional Risk »Test Compliance Activities »NASFAA Self Evaluation Guide © 2011 Global Financial Aid Services 27

28. How to Prepare? © 2011 Global Financial Aid Services 28 Most Common Findings?

29. 10 Most Common Audit Findings 1.R2T4 Calculation Errors 2.Pell Overpayment/Underpayment 3.Late Return of Title IV Funds 4.Verification Violations 5.Overaward- Financial Need Exceeded © 2011 Global Financial Aid Services 29

30. 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 © 2011 Global Financial Aid Services 30

31. 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 © 2011 Global Financial Aid Services 31

32. 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 © 2011 Global Financial Aid Services 32

33. Findings on Both Lists 1.Verification Violations 2.Return of Title IV Funds Made Late 3.Return of Title IV Calculation Errors 4.Pell Grant Over/Underpayments 5.Student Credit Balance Deficiencies 6.Satisfactory Academic Progress Issues © 2011 Global Financial Aid Services 33

34. How to Prepare? © 2011 Global Financial Aid Services 34 Let’s Review

35. Let’s Review! »Types of Audits »What to Expect During an Audit? »What will Auditors Request? »Resolving Findings & Corrective Action »How to Prepare »Common Findings © 2011 Global Financial Aid Services 35

36. Jeff Scofield Director of Financial Aid University of Hawaii- Hilo jscofiel@hawaii.edu © 2011 Global Financial Aid Services 36

37. Chesa Stanfield Director of Solutions Global Financial Aid Services cstanfield@globalfas.com © 2011 Global Financial Aid Services 37