There must be an adequate system of internal checks and balances. For example, financial aid officers should not authorize to disburse funds and payments. Testing should be given by a person who does not have prior financial or ownership to the school.
I. Importance of Separation of Duties
A. To provide cross checks and eliminate
potential conflicts of interest.
II. Federal Department of Education
A. Regulates requirements to separate
duties related to financial aid
responsibilies.
B. Schools must set up controls that prevent
an individual from having the authority to preform both awarding and disburstment
C. Individuals working in either authorizaiton or disbursment my preform other functions as well, but not both authorizationa dn disbursment.
D.Testing procedures
1. to be independently administered
2. test cannot be given by a current or former employoee, consultant or student of the school, owner, memeber for the board of directors or person with financial interest in the school or by a relative of any of these individuals.
3. test administrator cannot score the test
Like ours, the test proctor should be separate from the admissions department and the business office separate from the Financial Aid Department.
Two examples:
Admissions Entrance Testing - test would be administered by either someone from one of the following departments: education, student services, graduate employment.
Financial Aid - awarded by FA department, approved for disbursement by Business Office
Good examples. Thanks, Angelique!
Within the confines of my department, the organizational structure would be as follows:
The financial aid officer would help to award the student's funding
The assistant financial aid director would then review and schedule funds for payment
The financial aid director would then pull in or pay the funds.
Agree, there has to be a separation of departments to function properly, the Financial Aid Department will secure the funds for the student, and the Business services will post the funds, and at the system that will allow the cross check of activity.
great idea to maintaine the integrity of the school and deffrent departments
When there is no separation of duties we will end up with conflict of interest issues. At a campus where the admissions department runs the admissions exam one could argue against the validity of the said exam.
Thanks for sharing your org chart showing how areas are structured, Wanda.
At our school, there is complete separation from admissions, testing, financial aid and business office.
I agree with Pat in regard to collecting money, recording it and that the Business Office and Financial Aid be separate as they are here.
Our Business office and FA department work together but have separate roles in the financial aid process for our students. Also Admissions can not administer entrance test to potential students is another cross check to eliminate potential conflicts of interest.
I. President
A. Academic Dean
1. Assistant Academic Dean
2. Learning Resource Center Coordinator
3. Registrar
4. Registrar Clerk
5. Test Proctor
6. Program Directors
a. Medical Assistant
b. Respiratory Therapy
c. Occupational Therapy Assistant
d. Physical Therapist Assistant
e. Dental Hygeine
f. Dental Assistant
g. Insurance Billing and Coding Spec.
h. Health Information Technology
i. Nursing
7. General Education Faculty
B. Administrative Assistant
C. Workforce Training and Business Developer
D. General Office Assistant
E. Director of Admissions
1. Receptionists
2. Admission Representatives
F. Director of Financial Aid
1. Assistant Director of FA
2. Student Award Authorization Officer
3. Student Award Distribution Officer
4. General Financial Aid Officer
G. Director of Business Services
H. Director of Student Services
I. Director of Graduate Employment
Bruce - thanks for the good outline showing divided areas of responsibility.
Good point, Hermie. The need for and benefits of cross checks and balances is not unique to the edcation industry.
Institution Departmental Breakdown
I. Education
A. Academics
B. Admissions Testing
II. Admissions
A. Marketing
B. Recruitment
III.Financial Aid
A. Aid Qualification
B. Aid Awardment
IV. Business
A. Aid Disbursement
B. Tution Processing
An admissions representative may not be the same person who administers an admissions test.
Checks and Balances system is a MUST to ensure accuracy and compliance. Without it can cause the downfall of any business.
