The Auditors Are Coming!
What is your greatest concern in dealing with audits or auditors? How do you handle that concern?
My greatest concern is making sure to work throughout the year to ensure every file is in good order.
Poor auditors have such a terrible reputation. They are just doing their jobs but we all get so nervous when we hear they are coming. Regular audits of our files and practices make things much easier. We also have a great support system at our corporate level and they are usually always available during an audit. We always just hope for the best knowing we did everything in compliance.
My biggest concern is the fact that there are so many departments within the school that do have an effect on Title IV funding and if they are not in compliance, it can affect our trying to keep in compliance. For example, if an academics department holds off on dropping a student for too long, it could cause us to have a late refund. It's important that we always emphasize that an audit is not just in regards to the financial aid department, but that we all work together to ensure we stay in compliance because if an audit shows that we are not in compliance and we lose Title IV funding, the school as a whole is in trouble, not just the FA department.
Elizabeth,
I think most FA professional struggle and lose sleep over an audit; however, you have to be proactive with continued training and monitoring throughout the award year. It is unfortunate when you have a change in personnel but your approach is the best one - try to get caught up and review as many as possible. It may be helpful to identify areas of weakness and attack those types of files or documentation first.
Best wishes in your continue pursuit of online financial aid knowledge.
Sincerely, Chyrl
Chyrl Ayers
We have a similiar situation at our campus. While I have been with the department for seven plus years, we have had significant turn over and then were down a person for about 6 months. We finally have a full staff again but are still trying to get caught up and audit the files that were passed through multiple hands. Fortunately, our internal audit in July only yield one error in posting an institutional scholarship. However, I am still nervous knowing an external audit will be coming soon.
Ori,
Your goals of less stressful and streamlined is an outstanding one. Adherence to Policies and Procedures by all departments with open communication may ensure a great audit with minimum issues.
Sincerely, Chyrl
Chyrl Ayers
The greatest concern that we face when dealing with auditors is ensuring that our administration is using clear and effective inter-departmental communication. There are so many different items that play a role in an audit. As such, it is essential that everyone is on the same page and using the same policies and procedures for data collection and information distribution. When everyone on an administration is using a uniform process, audits become less stressful and more streamlined.
My biggest concern is the files that were prepared by former employees of the school. I am new and I have no idea what others were working on and if they did it correctly. Any current student I am working with I review the file and look for any missing documents and correct any errors if found.
As I mentioned before, we are just creating our FA office, and the idea of creating checklists in each file and doing a monthly or bi-weekly internal audit sounds like a great way to prevent being nervous for those inevitable visits from auditors. Thank you for that idea!
Gloria,
Papework in order is very important. It is a great idea to have a step by step process to ensure accuracy in the file for all audits.
Sincerely, Chyrl
Chyrl Ayers
Making sure that all my paperwork is in order. I try to make sure I go step by step on each file to ensure I have all my paperwork that is needed for the audit.
Allan,
Your points are all understandable and we all feel this way before and during the audit. It is important to be prepared, organized and ready to defend why you and your team handled situations a specific way. Remember auditors are humans and make mistakes and they do not necessarily do financial aid every day.
Sincerely, Chyrl
Chyrl Ayers
The greatest concern is having a complete and clean file. That takes different eyes looking at the same file and making sure everything is where it should be. If everything has been filled out and signed from the start, audits go fine. But we still sweat them, because financial aid is always changing, and the auditor could be looking for anything.
Frances,
A checklist may be a valuable tool to ensure compliance with all documents; however, it is important that your team (or possible your servicer) does some additional review. Possible once a quarter select a sample and QC for accuracy of the documents and data to validate accurate awarding, disbursing and return of funds in the case of withdrawn students. It is important to take a look at the total process not just the collection of documents.
Sincerely, Chyrl
Chyrl Ayers
My biggest concern is making sure all documents are in the file. We also use a checklist to ensure that all required docs are in the students file.
Monique ,
To avoid fear of the unknown such as an audit I think it is important to inspect what you expect. If you expect quality within your files and processes you have to test these throughout the year not just at audit time. I encourage all of my colleagues to periodically test their file and record keeping processes to ensure compliance.
Sincerely Chyrl
Chyrl Ayers
I think the greatest concern is the desire to come out with a successful audit. This takes the implementation of SOPs and executing them to ensure compliance and accuracy. ongoing training should occur often with staff and conducting internal mock audits also help keep us on our toes. If you check the checker and inspect what you expect, it should help alleviate some of the concerns of going through the audits and should also help these audits be successful ones.
Nicholas,
I think your approach is excellent and definitely ensures confidence in your files. It is important to periodically inspect your files to ensure all documents are collected and accurately completed. Taking the time to be organized will really pay off during the audit cycle.
Sincerely, Chyrl
Chyrl Ayers
The auditors coming is like the final exam. Even though we have clean audits and are prepared, I'm always anxious just because the audits are so important.
We have standardized forms and checksheets for everything. This helps to ensure all processes are completed correctly and files are organized. Everytime I pull a file, I go through to make sure everything is organized. Keeping records organized and in a specific order makes it easier to recognize if something is out of place or missing. The organization helps me to have confidence whenever it is time for an audit.
