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Program Reviews& the Top Ten FindingsLASFAAMarch 16, 2017Kevin CampbellTraining OfficerUnited StatesDepartment of Education
ED presentations will be available at www.lasfaa.org2
Top Ten Audit andProgram Review Findings3
Top Audit Findings1. Repeat Finding – Failure to Take Corrective Action2. NSLDS Roster Reporting – Inaccurate/UntimelyReporting3. Return to Title IV (R2T4) Calculation Errors4. Return to Title IV (R2T4) Funds Made Late5. Verification Violations4
Top Audit Findings6. Pell Grants - Overpayment/Underpayment7. Qualified Auditor’s Opinion Cited in Audit8. Entrance/Exit Counseling Deficiencies9. Student Credit Balance Deficiencies10. Improper Origination of Direct Loans5
Top Program Review Findings1. Crime Awareness Requirements Not Met2. Verification Violations3. Return to Title IV (R2T4) Calculation Errors4. Student Credit Balance Deficiencies5. Drug Abuse Prevention ProgramRequirements Not Met6. NSLDS Roster Reporting –Inaccurate/Untimely Reporting6
Top Program Review Findings7. Entrance/Exit Counseling Deficiencies8. Consumer Information Requirements Not Met9. Satisfactory Academic Progress Policy NotAdequately Developed/Monitored10. Inaccurate Recordkeeping7
Findings on Both Lists8 Return to Title IV (R2T4) Calculation Errors NSLDS Reporting – Inaccurate/Untimely Reporting Verification Violations Student Credit Balance Deficiencies Entrance/Exit Counseling Deficiencies
What is a Program Review andIs It the Same as an Audit?9
What is a Program Review?Method of oversight Evaluates compliance withTitle IV, HEA statue and regulations Examination of financial aid, fiscal andacademic recordsInterviews with institution staff and studentsReview of consumer informationrequirements10
What is a Program Review?Identifies errors in compliance andliabilities owed Improves future institutionalcapabilities A program review is NOT acompliance audit Different parts of the statuteOne is conducted by ED and the other is a processleading to an ED review and possible resolution11
Why are Program ReviewsConducted? Secretary of Education is mandated by lawunder Section 498A of the Higher EducationAct of 1965, as amended (HEA), 20 U.S.C.§1099c to conduct program reviews atinstitutions of higher education participatingin the Title IV, HEA programs:(a) GENERAL AUTHORITY. - In order to strengthenthe administrative capability and financialresponsibility provisions of this title, the Secretary(1) shall provide for the conduct of program reviewson a systematic basis designed to include allinstitution of higher education participating inprograms authorized by this title;12
Who Conducts Program Reviews? Federal Student Aid Program Compliance School Eligibility Service Group(SESG) School Participation Division Program Review TeamSecretary of Education hasdelegated responsibility ofconducting program reviews13
How Are Institutions Selected? 20 U.S.C. 1099c-1 (a)(2): (The Secretary) shall givepriority for program review to institutions of highereducation that are institutions withHigh cohort default rate or dollar volume of default (25% ) Significant fluctuations in Federal Pell Grant or loan volume Reported deficiencies or financial aid problems by state oraccrediting agency High annual dropout rates, or Any other institution Department determinesmay pose significant risk of failure to complywith administrative capability orfinancial responsibility requirements 14
Program Review Preparation15
Department Preparation for ProgramReview Institutional Structure Research Systems Research Other Research Program Review Plan16
Institution Preparation for ProgramReview Receiving Notification of Program Review Advance Notice Review Short Notice Review Third-Party Servicer Notification Responding to Announcement Letter17
Program Review Begins18
Entrance Conference 19On-Site Program Review Introductions Reason for Program Review and Scope Overview of Program Review Process Title IV Processing/Staff Responsibilities Required Documents and Time Frames Schedule Exit Conference Getting Started
Entrance Conference 20Off-Site Program Review Conference Call One Reviewer Limited Scope Getting Started
Department Review ofInstitutionalProcesses and Data21
Review of InstitutionalProcesses and Data Review Institutional Documents Collected 22Catalog/Brochure/HandbookPolicies and ProceduresPublished Campus Security InformationStudent Consumer PublicationsOnline Student Consumer InformationInstitutional Forms, Applications andWorksheets
Review of InstitutionalProcesses and Data Review of Institutional Critical Elements 23Eligible InstitutionAdministrative CapabilityProgram EligibilityConsumer InformationCampus SecurityFinancial ResponsibilityFiscal ReviewFISAP
Review of Institutional Processesand Data Staff Interviews 24Academic/RegistrarAdmissionsFinancial AidStudent Accounts/Bursar/Fiscal OfficePlacementCampus Security
Department Review ofStudent Level Information25
Review of Student Level Information Review of Student Critical Elements 26Student EligibilityAttendanceCost of AttendanceCredit BalancesEnrollment StatusDependency Overrides/Professional JudgmentReturn of Title IVSatisfactory Academic ProgressVerificationCalculations/Disbursements
Review of Student Level Information Records Reviewed in Student Files Student Records Compared to Department Data 27AdmissionsAcademicFinancial AidStudent Account LedgerNSLDSCODCPSStudent Interviews
Program Review Concludes28
Exit Conference 29On-Site Program Review Field Work Substantially Completed Required Actions Outstanding Items Preliminary Findings Next Steps
Status Meeting 30On-Site Program Review Fieldwork Not Completed Required Actions Outstanding Items Preliminary Findings NOT Discussed Next Steps
Referrals Administrative Actions and Appeals ServiceGroup Management Improvement Services Office of Inspector General State Authorizing and Accrediting Agencies31
Post-ReviewCommunication and Report32
Data Analysis Completed Three Possible Outcomes Additional Information Requested Expedited Determination Letter (EDL) Issued Program Review Report (PRR) Issued33
Request For Additional Information Institution requested to send documentation Typically allowed 30 days to provide information If information not provided Visit scheduled to review documents on-site-or- PRR includes findings otherwise omitted-or- 34PRR includes Lack of Administrative Capability finding
Expedited Determination Letter EDL issued Three standard sections 35No instances of non-compliance (findings) or only minor (nonsystemic) findings identifiedAny findings corrected prior to issuance of EDLAny liabilities were paid/collected prior to issuance of EDLScope of Review and DisclaimerFindings, if applicableRecommendations, if applicableSample template in Program Review amReviewGuide.html
Program Review Report Identifies findings with regulatory citations Actions required by institution Standard sections 36Cover pageTable of ContentsInstitutional InformationScope of Review and DisclaimerFindingsRecommendations, if applicableAppendices and EnclosuresSample template in Program Review Guide
Program Review Report Findings Student-Specific No potential or actual liabilityPotential or actual liabilitySmall error rate High error rate School Finding Incomplete or unacceptable policy or procedureProblems related to institutional eligibility, financial responsibility,financial reporting, other actionsNo potential or actual liability Potential or actual liability 37
Program Review ReportResponse38
Institution Responds to PRR Written response Submitted by due date Disagree with any PRR conclusions Document Required Actions from PRR 39Correct policy or procedureCorrect student-specific errorFile review requiredProvide information to quantify liabilityRequest extension of time for good cause
Department Follow Up to Response Response not received by due date Missing information or needclarification Response rejected 40Problems with documents forseveral filesTypically given another 30 days to correctand respond
Final Determinationand Follow Up41
Final Program ReviewDetermination Letter (FPRD) Department’s final determination for each finding Identifies liabilities and provides payment instructions Closes Program Review, if appropriate State authorizing and accrediting agencies receive copies Subject to FOIA Two types: No further action requiredFurther action required 42E.G. COD adjustments
Final Program ReviewDetermination Letter (FPRD) Standard sections 43Cover pageTable of ContentsInstitutional InformationScope of Review and DisclaimerFindings and Final DeterminationsSummary of LiabilitiesRepayment InstructionsAppendices and EnclosuresSample template in Program Review amReviewGuide.html
FPRD Closeout Letter orAppeal of Monetary Liabilities FPRD Closeout Letter Issued after satisfactory response to FPRDNot issued if institution files appealAppeal of Monetary Liabilities Filed within 45 daysCollection efforts deferred on appealed liability amountNon-appealed liabilities must be paidBilling resumes if decision in Department’s favor44
Top 10 Resources forCompliance Solutions45
Top 10 Resources FSA Assessments http://ifap.ed.gov/qahome/fsaassessment.html Consumer ReturnInformation/Campus Securityof Title IV Funds InstitutionalEligibility Satisfactory Academic Verification Fiscal46ManagementProgress
Top 10 Resources FSA Training http://fsatraining.info/ Fundamentalsof Federal Student Aid Administration FSA Coach Basic Intermediate Advanced (Coming Soon) ConsumerInformation Satisfactory Academic Institutional Recorded MORE!47EligibilityWebinarsProgress
Top 10 Resources FederalStudent Aid Handbook Applicationand Verification Guide Chapter4: Verification, Updates and Corrections Chapter 5: Special Cases Volume1 (Student Eligibility) Chapter Volume2 (School Eligibility and Operations) Chapter481: School-Determined Requirements6: Consumer Information & School Reports
Top 10 Resources Federal VolumeStudent Aid Handbook4 (Processing Aid and Managing FSA Funds) Chapter2: Disbursing FSA Funds Chapter 3: Overawards and Overpayments Chapter 5: Reconciliation in the Pell Grant and Campus-Based Programs Chapter 6: Reconciliation in the Direct Loan Program Appendix A: Accounting Systems Volume495, Chapter 1 (Withdrawals and the Return of Title IV Funds)
Top 10 Resources Code Titleof Federal Regulations34, Education Part84 (Drug Free Workplace) Part 86 (Drug and Alcohol Abuse Prevention) Part 99 (Family Education Rights and Privacy) Part 600 (Institutional Eligibility under the Higher Education Act of 1965,as amended) Part 668 (Student Assistance General Provisions) Parts 673 – 676 (Campus-Based Provisions) Part 685 (William D. Ford Federal Direct Loan Program) Part 686 (TEACH Grant Program) Part 690 (Federal Pell Grant Program)50
Top 10 Resources Campus Security Entrance/Exit Counseling https://studentloans.govReturn of Title IV (R2T4) on the Web https://faaaccess.ed.govSchool Data on StudentAid.gov Direct Loan School Guide (2008-09) ml51
Resources by Top 10 Findings52
Resources by Top 10 Findings Repeat Finding (Audit) Regulations: 34 C.F.R. §§ 668.16 and 668.174(a)NSLDS Reporting – Inaccurate/Untimely Reporting Regulation: 34 C.F.R. § 685.309(b)Dear Colleague Letter: GEN-12-06 Enrollment Reporting Guide NSLDSFAP website - newsletter updates 53https://www.nsldsfap.ed.gov/nslds FAP/default.jsp“News & Events” along top of home page
Resources by Top 10 Findings R2T4 Calculation Errors and R2T4 Made Late Regulations: 34 C.F.R. §§ 668.22(e) and (f); 668.22(j) and668.173(b)FSA Assessments: Schools - R2T4R2T4 Worksheets Electronic Web Application (https://faaaccess.ed.gov) Paper (FSA Handbook, Volume 5, Chapter 1)Verification Violations Regulations: 34 C.F.R. §§ 668.51 ̶ 668.61 (Subpart E) and668.16(f)FSA Assessments: Students - VerificationFSA Handbook, Application & Verification Guide, Chapters 4 and 554
Resources by Top 10 Findings Pell Grants Overpayment/Underpayment Regulations: 34 C.F.R. §§ 690.62, 690.63, 690.75, 690.79 &690.80FSA Handbook, Volume 4, Chapter 3Qualified Auditor’s Opinion Cited in Audit Regulation: 34 C.F.R. § 668.171(d)(1)FSA CoachFSA AssessmentsFSA Handbook, Volume 4, Chapters 5 and 6; Appendix A55
Resources by Top 10 Findings Entrance/Exit Counseling Deficiencies Student Credit Balance Deficiencies Regulation: 34 C.F.R. § 685.304FSA Coach, Lesson B-404: Direct Loan Entrance Counseling andLesson B-603: Exit Loan CounselingFSA Handbook, Volume 2, Chapter 6Regulations: 34 C.F.R. §§ 668.164(e) and 668.165(b)FSA Handbook, Volume 4, Chapter 2Improper Origination of Direct LoanRegulations: 34 C.F.R. §§ 685.301 FSA Handbook,Volume 3, Chapter 5 56
Resources by Top 10 Findings Crime Awareness Requirements Not Met andConsumer Information Requirements Not Met Regulations: 34 C.F.R. Parts 86 and 99Regulations: 34 C.F.R. §§ 668.6, 668.41 - 668.49 (Subpart D)Higher Education Act of 1965, as amended, Sec. 485FSA Handbook, Volume 2, Chapters 6 and 7Consumer Information Training FSA Assessments: Schools - Consumer Information Consumer Information Disclosures At-A-GlanceThe Handbook for Campus Safety and Security Reporting http://www2.ed.gov/admins/lead/safety/campus.html 57http://fsatraining.info (Training by Topics)
Resources by Top 10 Findings Drug Abuse Prevention Requirements Not Met Regulation: 34 C.F.R. Part 86FSA Assessments: Schools - Consumer Information Consumer Information Disclosures At-A-GlanceFSA Handbook, Volume 2, Chapter 6Inaccurate Recordkeeping Regulations: 34 C.F.R. §§ 668.24 and 668.165(b)FSA Handbook, Volume 2, Chapter 758
Resources by Top 10 Findings Satisfactory Academic Progress Policy NotAdequately Developed/Monitored 59Regulations: 34 C.F.R. §§ 668.16(e), 668.32(f) & 668.34FSA Assessments: Students - Satisfactory AcademicProgress (SAP)FSA Handbook, Volume 1, Chapter 1Satisfactory Academic Progress Training http://fsatraining.info (Training by Topics)
SCHOOL ELIGIBILITY SERVICE GROUP (SESG)Ron Bennett - Director, School Eligibility Service Group, Washington, DC(202) 377-3181School Eligibility Service Group General Number: (202) 377-3173 or e-mail: CaseTeams@ed.govOr call the appropriate School Participation Division manager below for information and guidance on audit resolution, financialanalysis, program reviews, school and program eligibility/recertification, and school closure information.New York/Boston School ParticipationDivisionConnecticut, Maine, Massachusetts, New Hampshire, Rhode Island,Vermont, New Jersey, New York, Puerto Rico, Virgin IslandsBetty Coughlin, Director (646) 428-3737Tracy Nave – Boston (617) 289-0145Patrice Fleming – Washington, DC (202) 377-4209Chris Curry – New York (646) 428-3738Philadelphia School Participation DivisionDistrict of Columbia, Delaware, Maryland, Pennsylvania, Virginia,West VirginiaNancy Gifford, Director (215) 656-6436John Loreng – Philadelphia (215) 656-6437Sherrie Bell– Washington, DC (202) 377-3349Multi-Regional and Foreign SchoolsParticipation DivisionMichael Frola, Director Washington, DC(202) 377-3364Barbara Hemelt Washington, DC (202) 377-4201Joseph Smith Washington, DC (202) 377-4321Barbara Murray – Washington, DC (202) 377-420344Atlanta School Participation DivisionAlabama, Florida, Georgia, Mississippi, North Carolina,South CarolinaChristopher Miller, Director (404) 974-9297David Smittick – Atlanta (404) 974-9301Vanessa Dillard – Atlanta (404) 974-9418Dallas School Participation DivisionArkansas, Louisiana, New Mexico, Oklahoma, TexasCynthia Thornton, Director (214) 661-9457Jesus Moya – Dallas (214) 661-9472Kim Peeler – Dallas (214) 661-9471Kansas City School Participation DivisionIowa, Kansas, Kentucky, Missouri, Nebraska, TennesseeRalph LoBosco, Director (816) 268-0440Dvak Corwin – Kansas City (816) 268-0420Jan Brandow Kansas City (816) 268-0409Clery/Campus Security (Managed under theAdministrative Actions and Appeals Service Group)Jim Moore – Washington, DC (202) 377-4089Chicago/Denver School ParticipationDivisionIllinois, Minnesota, Ohio, Wisconsin, Indiana, Colorado,Michigan, Montana, North Dakota, South Dakota, Utah, WyomingDouglas Parrott, Director (312) 730-1532Earl Flurkey – Chicago (312) 730-1521Brenda Yette – Chicago (312) 730-1522Douglas Parrott Denver (A) (312) 730-1532San Francisco/Seattle SchoolParticipation DivisionAmerican Samoa, Arizona, California, Guam, Hawaii, Nevada,Palau, Marshall Islands, North Marianas, State of Micronesia,Alaska, Idaho, Oregon, WashingtonMartina Fernandez-Rosario, Director(415) 486-5605Gayle Palumbo San Francisco (415) 486-5614or Seattle (206) 615-3699Dyon Toney Washington, DC (202) 377-3639Erik Fosker – San Francisco (415) 486-5606
Contact InformationYour Region VI Training Officers:Trevor Summerstrevor.summers@ed.gov214.661.9468Rick Renshawrick.renshaw@ed.gov214.661.9506Kevin Campbellkevin.campbell@ed.gov214.661.948861
Training FeedbackTo ensure quality training we ask all participants to please fillout an online session TXSurvey feedback is a tool to help us improve our training,justify training/travel expenditures and to listen to ourcustomersPlease provide any comments regarding this training or the trainer to:Jo Ann Borel, Title IV Training Supervisor62joann.borel@ed.gov
Thank YouLASFAA!63
QUESTIONS?64
Federal Student Aid Handbook Volume 4 (Processing Aid and Managing FSA Funds) Chapter 2: Disbursing FSA Funds Chapter 3: Overawards and Overpayments Chapter 5: Reconciliation in the Pell Grant and Campus-Based Programs Chapter 6: Reconciliation in the Direct Loan Program Appendix A: Accounting Systems
