Nichole, Periodic internal reviews are a great way to stay prepared for external audits that occur each year. It is important to not only review compliance issues but fiscal, COD reporting and monthly reconciliation also.
Sincerely,
David McGuffee
The most recent concern has been our transition to complete electronic files versus paper files. We recently had an internal audit that had documents that weren't electronic that were required but not uploaded into the system yet. Luckily it was an internal audit, so we could reconcile the system but it did shed light on processes that needed to be put in place in order to create a checks and balance system.
Jeffrey,
Agree with your overall approach and you are correct auditors approach do vary. Auditors view different items as important and tend to lean their review to those areas. Be prepared through organizational structure and stay on top of changing requirements.
Sincerely,
Chyrl Ayers
Brittany,
Ihope you found the information to beneficial to you. Auditors are a valuable tool and allows us to grow in our administration of Federal Student Aid; however, there are consequences to inappropriate actions.
Sincerely,
Chyrl Ayers
Even though auditors have a standard checklist to navigate through, it seems like there's some subjectivity in what is emphasized. It does however, keep you on your toes.
The best way to handle this concern is to be well prepared at all times. Make sure your records are sequential, organized, and up to date.
This section really explained the consequences of misbehavior in education manangement. It is good to know schools and individuals are held accountable for their actions and/or misrepresentations.
My greatest concerns are that the correct student documentation are properly handled and available in the studen's files. When the auditors ask for the files if the evidence is not presented or file properly, additional information will be required.
ANGELA,
Periodically reviews are a great way to prepare and be confident in your student files' accuracy. It is important to test the fiscal, COD report and reconciliation process to ensure these records are accurate and timely. The review by auditors should be complete related to admission, Financial Aid, Business Office and Academics to guarantee accurate student files.
Sincerely
Chyrl Ayers
IT IS NOT A BIG DEAL IF YOU PERIODICALLY CONDUCT AN INTERNAL REVIEW OF YOUR FILES
Todd,
Third party servicers have annual audits just like colleges so you should get a copy each year of your servicer. This audit should assit you in determining how successful your servicer is being in the annual reviews and identify any areas that you should watch. Also, your servicer should be able to address any concerns you have related to responsibilities they perform for your college. I encourage FA Professionals to "Inspect what they Expect."
Best wishes in your continued online financial aid educational experience.
Sincerely,
Chyrl Ayers
I guess my biggest concern with the SFA audit is in relation to third party servicers. While most of the processes are handled in house some of the auditable line items are maintained outside of the campus. Given the fact that the campus is ultimately responsible this makes me nervous. This just reinforces the fact that you need to do your homework on anyone who can influence your livelihood.
Pamela,
It is important that all of us are confident in our documentation and know that we have P&P's in place to ensure accurate files, reporting and reconciliation of FSA funding. If you are confident in your internal controls and have systems that allow you to monitor and test these controls there is no reason to fear an audit.
Best wishes to you in your online educational process.
Sincerely,
Chyrl Ayers
My greatest concern is making sure that everything is in order. It does not make me nervous because I am the only FA officer so I am able to double check my files myself periodically to make sure that everything is as it should be.
Wendy,
That is a great practice. During the periods in my FA career that I managed a campus FA/Business Office that was the method I selected to utilize. Inspect what you expect - you have to monitor the files to ensure compliance and proper documentation. An audit can be scary and we are human and miss things but the key is to ensure that that the overall process is accurate and documented.
Sincerely,
Chyrl Ayers
I think one of the greatest concerns is what they are going to find and if it is something that you may consistently do. I think sometimes it is scary when you are having an audit, but at the same time it can help you. We always try to audit our files and the things we do to make sure that we are in compliance with what we say we do.
My biggest concern is the short amount of time to obtain all of the files for our audit. We have 3 seperate locations, and the company that does our audits gives us the list of students 2 days in advance.
Danica,
Audits can affect your nerves; however, your approach is great. Two sets of FA eyes reviewing and double checking files are better than one. Remember auditors are not always right so before you agree to a potential finding do your own research and be prepared to defend.
Sincerely,
Chyrl Ayers
Jack,
I understand your concerns since I spent years in an college FA Office taking care of the regulatory and administrative functions of FSA. However, it appears that you are taking the necessary precautions to ensure compliance in the FA Office. I recommend attending training, especially any webinars so that you can stay on top of the ever changing requirements.
Sincerely
Chyrl Ayers
Audits are a nerve-wrecking thing. My concern is that even though we look through the files to make sure everything is good, there will be something that we missed. It helps to have more than one person go through the files and double check that everything is what and where it needs to be.
My greatest concern when it comes to Auditors is that something major will be found that we overlooked. We have several training sessions and are always up to date with all the new changes but it always is a nervous time when they come. Our schools are great with receiving and passing on information about changes though, but that thought is always in the back of my mind.
