I like to think we are ready for an audit everyday....when we do have time to prepare it is a time of review and double checks. Surprise visits really see if everything is in order on a regular working day.
An audit reviews what you say you are doing is happending and dictated standards are followed.
Audits are there to assure there is no deviation in these areas.
Hiring the right directors that know and understand their key responsbilities helps...
(i.e. FA- no late refunds, Admissions- proper discloures, Education- required advisory boards and required retention rates, Career Services- proper placment process and placement benchmarks are met are some examples)
preparing for an audit should be done as you are woeking on a daily basis, this will keep all records and files properly maintsined
I would prepare the student files make sure they are in order with proper application, official transcripts, disclosures, registrations,degree plan, financial aid audits if any and student accounts.
I would have Standard Operational Procedure binder ready in case of questions, tuition fees, catalog and program schedules handy. Including degree graduation student statistics.
To prepare for a known audit regarding faculty credentialing, I would:
1. Pull appropriate faculty files
2. Prepare a check list of documents required
3. Perform preliminary audit on faculty files be insure necessary documents are in file.
4. Meet with individuals to obtain any information not contained in faculty file.
We have an ongoing four step process that prepares our campus for the internal audit. 1. We have a process for reviewing daily activity and the intensity depends on what type of activity, 2. The activity is detailed and summerized either weekly, monthly or quarterly and reported ot our regionals. 3. The reviews are then returned for follow up. 4. We then have a campus audit team that visits each of the campuses periodically and does an informal audit. We then have our official internal audit. While the mistakes are at a minimun, they still happen.
As a School Director I prepare for all the areas. We should constantly do internal audits.
Make internal audit practices a dialy habit. Internal audit is an embeded aspect of daily business practices. Companies develop policies and procedures as specific guidelines to follow. I believe that as long as employees understand what their roles are and how their roles and actions impact the business,internal audit practices become a natural task.
First, I would determine what agency or body the auditor is representing and what is their concentration. My functional area would be financial aid. Confirm up-to-date accrediting certificates and licenses. Notify other departments they may be involved. Next, I would review our policies, especially in areas of weakness. Also, I would check out typical findings. In financial aid, the hot topics are usually Title IV refund calculations and timely returns, Pell over and under payments, entrance and exit counseling, as well as verification. I would run reports for the year to see where all of these areas standing and for possible sample testing if time permitted. Pell would be reviewed for each term, each year. Another item of importance, which may seem minor, is making sure files and filing are up-to-date – you never want to be running around looking for missing documents.
Pamela ,
I think your suggestion of maintaining a compliance binder with critical docs (physical or electronic) is a great way to ensure you don't have to "scramble" to prepare for an audit. Thanks for sharing.
Traci Lee
If I were on the receiving end of an audit, I would first make sure I understood all the audit requirements. I would ask questions of the auditor (if allowed) or consult with my peers if something was unclear. I would create my own department checklist, which I know I would end up triple checking (never hurts). Once the audit was complete, I would address any action items and then incorporate them into my department checklist for next time.
I actually maintain our university's compliance binder, where we house hard copies of every possible document we may be asked to show. The compliance binder is divided by departments and anytime a policy, procedure, form, manual etc., is updated or added I make sure a copy goes into the compliance binder for safe keeping. I am working on converting this into a complete electronic version as well.
In reading the other posts, I really like, "100% Compliance Everyday" motto. We all strive to be at a 100% but making it an "out loud" university wide initiative is a great recommendation.
In preparing for an audit I usually follow the requirements of the auditor in reference to any materials they wish to review or financial reports needing to be reconciled. I usually take notes from audits so that I may refer back to them the next time, referencing where I found information and the type of information needed. Reviewing files for completeness and making sure that any stray paperwork has been put where it belongs also helps in audit preparation. Once I've been through an audit process the information, reports and records that were audited stay in my mind as I go through my daily work. Seeing what the auditor examines and the kinds of things they look for during the audit helps me keep in mind the processes and procedures that should followed in order to be in full compliance for the next audit.
First of all, at my campus, we practice 100% compliance at all times. When an audit or review is scheduled, academics will initiate their own internal audit to prepare. This will include a review of student files focusing on attendance, grades, and SAP.
It is important for everyone to have a full and clear understanding of the procedures in the office.
Magdali,
Great points...I think establishing the full awareness throughout a campus can be the challenge. Helping people understand the "why" behind policy and procedure (external regulations vs. just an internal guideline) helps to ensure that such are followed.
William,
I think you are right about having regular procedures in place that are used in daily operations.
There is a saying, "in an announced war, few people die". On an everyday basis you should be treating your files like if there will be an audit tomorrow. You have to be fully aware what regulates your profession so that you can be fully compliant...and worry free.
Preparation is a continual process. First it's important to know what areas will be tested and what are the rules. Second checking areas of concern from prior years and ensuring procedures have been put in place to improve these procedures. Third pulling samples to "inspect what you expect". Ultimatley once the audit is announced it's a little late to try fixing things then, really you've just got to have the procedures in place and follow them every day.
This looks like a good list of items related to the accounting department. Thanks for sharing.
In order to be prepared for an audit of the accounting department you must have completed certain information for fiscal year.Some aspects to be audited may be:
-Copies of the reconciliation’s for all banks as of December 31.
-Detailed aged listing of accounts receivable as of December 31.
-Schedule of Deferred Revenue as of December 31
-Copies of all insurance policies for the fiscal year.
-Copies of fixed asset purchases thru December 31
-Invoice register for the year ended December 31
-Copies of Payroll (W-2,W-3,W-9,UCT-6 Form 941)
To prepare for an audit will need to gather information for the audit. The auditor will ask for information before and during an audit the auditor may provide a list of item to examine records concerning management, regulations, finances, curriculum,enrollment agreement applications and financial aid records.
