Planning for Reviews and Audits
What is the most strategic action to implement in order to prepare the institution for a Federal Program Review or audit?
According to the Program Review Guide, the best way to prepare for a Federal Program Review is to act as if there is a program review next month. Keeping on top of training is essential. Also being proactive on changes to the law and regulations are the best ways for a school to prepare. Another way to always be prepared for a program review is to establish recurring self-assessment utilizing the Assessments modules available through IFAP.
Katie,
That is a good idea. It is a good way to make sure the staff is on the same page and doing things right.
Warren Hoffman
One suggestion to help better prepare for an audit is to have a mock audit. Choosing random files and going through them to see what is in them can help give feedback on what the expectations are and to better prepare for the real thing. The DOE provides guidelines as to what they look for and can help when conducting your mock audit or when going through the real thing.
Romina ,
I like that you select ten random files monthly. I great way to keep tabs and discover if there are any pervasive problems among the staff.
Warren Hoffman
Warren,
The most strategic plan I have implemented for many years is double checking the files before turning them in. I also have a process in place to where I conduct a monthly review of 10 random files to check them for accuracy and ensure funds have disbursed or have been returned on time. It’s crucial to be extremely prepared and avoid any surprises by the time you get a date for a visit/DOE audit.
Thank you,
Romina
Michael,
Once again, all valid and good issues and ideas.
Warren Hoffman
Our institution uses something called a FA checklist to make sure all necessary documents are in the file. It is important that all files are complete and uniform. In my experience, the auditors really like when all the files are structured the same way. They become familiar with the files quickly and generally have less questions.
After all files have been audited, perform an internal audit. Picking 10 files from each status (active, drop, graduate). This "spot checking" will help catch deficiencies.
Ricardo,
I would just add that it is a good idea to keep the staff abreast of how things are going and to make sure the know who to refer the reviewers to if the are asked any questions.¿
Warren Hoffman
For me the most steategic action is to prepare all my files, make sure all calculation are correct , verification complete with all the compliacnce documents
Mayra,
All good suggestions. Remember, it is best that auditors directly work with one designated employee (it doesn't have to be the Director)who can provide them with with any documents that they ask for and to answer any of their questions. It will provide for consistency in response and make it easier for the Audit Team to understand the situations.
Warren Hoffman
The institution should always be ready for an audit visit. Always do internal random check for your department or cross reference your files. Make sure all your R2T4 calculations are doubled checked before submitted and processed on time.
Lora,
Yes Lora, a single person should be assigned to be a contact person for the Audit Team. That person should be someone who is capable of answering any of their questions as well as providing them with any documents or files that they need. Others in the office should be advised to send any questions from the auditors to the "lead". This will provide a consistency that will aid in the review process.
Warren Hoffman
Providing a "lead" for the audit and review team, in order to ensure they are supplied with needed materials and comforts during the audit.
Maria,
The worst way to start off an audit or program review is to not respond to their requests for documentation in advance and/or not have everything ready when the audit team arrives on-campus. They immediately begin to question your "administrative capability" which is never good. Organization is so important in order to keep track of the multitude of tasks that are required of the financial aid office, in addition to the many other departments that Title IV regulations apply to. I utilized a financial aid calendar to track all required tasks, reports, communications, policy/procedure/form updates, etc. It was imperative to my success as a financial aid director, as there is just too much to try and remember and manage effectively.
Cindy Kohlman
Ileana,
I couldn't have said it better! Proactive planning is key to success of anything really but most definitely for an audit or federal program review. Someone also once said that "practice makes perfect". Therefore, the more staff prepare, conduct quality assurance exercises and educate all staff that may be involved in the audit, the more likely the outcome will be more favorable. The analogy that I have used with some of my school clients is that not everyone becomes an Olympian. The athletes that achieve that high level in their sport is due to hard work, dedication, eating healthy and practice, practice, practice!
Cindy Kohlman
Cindy,
the institution should prepare by having all documents and files ready for the auditors. In addition the administration should have a yearly review of all policies and literature sent to students.
The Institution must organize an Audit Committee even before the Audit/Program Review is announced. This committee will ensure all documentation such as procedures manuals, consumer information disclosures, and others, are up to date. Each Office must perform an internal audit to confirm the Office's documents and students' files are correct and complete. Doing these exercises ahead of time will reduce a lot of work and stress when the audit time comes.
Asmir,
Having a plan already in place is so important.
Having staff members check other staff member files is a practice that many schools use for both quality control but also for training purposes. Sometimes financial aid staff do not know, what they do not know, so looking over work that has been completed by a colleague can be very beneficial!
Cindy Kohlman
Monique ,
Yes, the plan should already be in place and be "ongoing" as you state. A periodic review of a sampling of files is another ongoing best practice to better prepare a school in the event of an audit or program review.
Cindy Kohlman
