Separation of Duties Structure
Admissions
--greets students, gives tour of school and answers questions regarding admissions criteria and policies of the school regarding attendance, dress code and schedule of classes.
----unable to proctor entrance exams or give "pointers" to potential students about the exam
----unable to answer "financial aid" questions
Financial Aid
--informs students of financial aid choices, discusses interest rate, default, deferment, forebearance and payment
----unable to take payments for registration fee or tuition
Education
--discusses Policies and Procedures (attendance, withdrawal, etc.)
--evaluates transcripts
----unable to answer "financial aid" questions
Outline an organizational structure that supports the requirements ensuring appropriate separation of duties and give an example.
At the institution I am at although financial aid is one department we are split into different groups that perform different functions pertaining to financial aid.
Jamie,
Please check with your school's regulatory department/person on this topic. Schools must demonstrate separation of duties where there may be conflicts of interest but structures vary in their approach to complying with such separation.
Traci Lee
Would it be a conflict of interest if a financial aid office collects cash payments towards a students FA packaging? Or should the student be directed towards a business office?
For instance, our Admissions Department and our Financial Aid Department are seperate entities.
Not only would it be overwhelming but also a conflict of interest for the school and the student
lorraine,
Good examples for protecting against potential conflicts of interest.
Traci Lee
Admissions reps may not distribute required assessments.
Financial aid may not collect payments on student accounts.
I agree, there has to be a separation of departments to function properly.
An outline for an organization structure would mainly be that no one person handles all of the financial aid incoming and out going. We would rotate the people in charge.
I also agree with Patricia that there should not be one person in chanrge of doing all these duties.
When collecting and recording funds, it should be seperated through Financial Aid and Business Office. This is practicing a "failsafe" process as well as following procedures that uphold to compliance standards.
Every institution must ensure that no one indvidual has the capability to award federal aid and then disburse aid. These functions do not have to be literaly performed at the campus level but rather must be performed by indivduals who are not within the same organzational entity.
We also have our duties seperated. We have Admissions Reps, F.A and Coordinators. It helps having everything seperate. Not all duties are placed on the same person. It is a very team work environment.
I completely agree is having seperation of duties. There are way too many times, when there is a conflict of interest. Admissions should keep seperate from FA, as FA and Bursars should be seperate as well.
As an Admissions Coordinator, when a student asks me about Financial Aid, I refer them to someone in the department.
This has been a gray area and should be more narrowly defined.
I know it's difficult for smaller schools but, such separation of specific duties is critical. However, there may be considerations of certain duties and functions that can be done without violating the specific areas which require separation.
I understand that it is a seperation of duties, to keep Financial Aid and Business Office seperate. Although, I do feel in certain situations or certain offices (smaller companies) it would be a little easier to have someone that can take care of both. Not to handle all of financial aid but help out in parts.
