1. Compliance and Audit Practices within the Financial Aid Office

2. This Photo by Unknown Author is licensed under CC BY-NC

3. University Business Article January 30, 2018
2015 Vanderbilt University did an internal audit to better understand the cost of compliance. The cost was $146 million in
The Vanderbilt study also determined that compliance cost in higher education is approximately $27 billion
According to the Higher Education Compliance Alliance (HECA) there are an estimated 265 federal statutes for institutions to follow
University Business Article January 30, 2018

4. What are the major compliance sectors in Higher Education
Cybersecurity
Federal Regulations
State Regulations
Athletics
Who is responsible for ensuring regulations are reviewed and policies and procedures are in place
What can the Financial Aid Office do to ensure all I’s are dotted and T’s are crossed
Discussion Topics

5. Identity Theft Red Flag Rules
Safeguard
Rules
Identity Theft Red Flag Rules
FERPA
State Privacy Laws
Cybersecurity Compliance All found on IFAP under cybersecurity compliance

6. What is PII and SPII How is it relevant to compliance
Personally Identifiable Information (PII)
Sensitive Personally Identifiable Information (SPII)
Schools need to educate students and families on how to send their personal information
Schools should have readily available the procedure for sending PII or SPII
Q&A on IFAP under FSA Cybersecurity Compliance has an example of how to WinZip information
Details on how to encrypt data should be on your website
What is PII and SPII How is it relevant to compliance

7. Federal Compliance Consumer Information Disbursement Rules
Awarding Rules
SAP
R2T4
Verification
Reporting Regulations
ISIR management rules
FERPA
Federal Compliance

8. State Compliance Regulations
Reporting for various programs
On-time awarding
Determination student is eligible for funding
Audits
State Compliance Regulations

9. Who is the responsible office to ensure college is in compliance
Compliance is an institutional responsibility.
Make sure decision makers are aware of all compliance issues
Every office on campus shares a piece of the compliance pie
Communication and training will ensure compliance issues are addressed and in place
Who is the responsible office to ensure college is in compliance

10. What can the Financial Aid Office do to get the ball rolling
Create a committee to review and ensure current regulations are being met
Committee should consist of IT, Registrar, Bursar, FA, Campus Security, Admissions, Title IX, Institutional Research and General Council
Have regular meetings to review progress and to establish a game plan for new regulations
As stated earlier make sure the decision makers are aware of the regulations and your progress
Communication Communication Communicatiion
What can the Financial Aid Office do to get the ball rolling Y

11. Make sure your Policies and Procedures are up to date and contain all the required information
There are a number of companies that will assist with reviewing and suggestions to make your P&P perfect
NASFAA has a great tool to utilize
Ask other institutions for assistance
Utilize any training on the subject
Some Best Practices

12. Best Practices Cont. Regular Meetings with FA staff
Retreats with FA staff with specific topics that deal with compliance
Allow as many staff as possible to have access to NASFAA newsletter or other relevant publications
Get staff on list servs for their specific jobs
Have group reading days to review regulations
Encourage training opportunities
Use DOE tools available on IFAP
Best Practices Cont.

13. Audits There are many entities that will audit your college
Federal, State, NCAA and Accrediting Agencies
Audits

14. Top 10 Federal Audit Findings
Repeat Finding – Failure to Take Corrective Action
NSLDS Roster Reporting – Inaccurate/Untimely Reporting
Return to Title IV (R2T4) Calculation Errors
Return to Title IV (R2T4) Funds Made Late
Verification Violations
6. Pell Grants - Overpayment/Underpayment
7. Qualified Auditor’s Opinion Cited in Audit
8. Entrance/Exit Counseling Deficiencies
9. Student Credit Balance Deficiencies
10. Improper Origination of Direct Loans
Top 10 Federal Audit Findings

15. Federal Audit Notification Gathering of data
Sending required documentation
Site Visit
Responding to findings
Final Determination and any fines or restrictions
Federal Audit

16. FAO role in Federal Audit
Organize the group to assist with getting information together
Assign tasks
Gather and send information
Make sure all offices are available for visit
FAO role in Federal Audit

17. How to make things easier if chosen for an audit
P&P up to date and correct
Consumer Information is on website
Processes for administering aid are correct
Files are in order
Verification is complete
How to make things easier if chosen for an audit

18. Questions