LaRS Review Session

1
Session 68

• LaRS Review Session
• Martha Shine
• Angela Baker

2
LaRS Process Overview

• Invoice Submission quarterly submission of
  lender portfolio activity
• Validation edit routine to ensure data
  reliability accuracy
• Notification alerts to lenders servicers
• Payment/Collections process for issuing
  payments and collecting debts
• Reports management information tools

3
LaRS Process Flow
Payments

• Automated Clearinghouse (ACH)
• U.S. Treasury Offsets

Accounts Payable Module
Validation
Lender/Servicer Invoice Submission
Alerts
Lender
Accounts Receivable Module

• Origination Fees
• Lender Fees
• Interest Subsidy
• Loan Activity
• Loan Portfolio Status
• E-Mail Alert FTP Users
• (SAIG receipt of file)

• Check data
• (e.g. valid
• combinations)
• E-Mail Alert
• (FTP users)
• Reasonability

• Lender Search Report

• E-Mails
• Payments
• Receivables

Collections

• Origination Lender Fees
• Consolidation Loan Rebate Fee
• Review Findings
• Check or ACH acceptable
• http//www.fp.ed.gov/PORTALSWebApp/fp/Manuals.jsp
  

4
LaRS Validation (Is your data correct?)

• Origination and Lender Fees
• Loan type, fee percent interest rate validation
• Interest Benefits
• Loan type interest rate validation
• Special Allowance Subsidy
• Loan type, SAP category, interest rate
  validation
• Loan Activity Portfolio Status
• Completeness and accuracy

5
LaRS - Notifications

• E-Mail Alerts
• File transfer acceptance
• Single versus multiple invoice submission
• Payment notification
• Invoice Detail
• Receivable notification
• Invoice Detail
• Weekly
• Reasonability

6
LaRS - Notifications

• Technology Challenges
• Returned mail
• Spam pop-up blockers

7
LaRS Notifications

• Payments
• Disbursements made within 7-10 business days
• Notifications issued 12-24 hours prior to payment
• U.S. Treasury Offsets
• Incoming ACH TCS TREAS 449
• call [phone]

8
LaRS Notifications

• Receivables
• Payable to FSA
• Due upon receipt
• Lender billed weekly
• Funds Remittance Guide http//www.fp.ed.gov/PORTAL
  SWebApp/fp/Manuals.jsp

9
LaRS Lender Search Report

• On-line users
• Available prior/post submission
• File transfer
• Available post submission

10
LaRS Lender Search Report

• Access
• FMS with appropriate user id/password
• Uses
• Reconciliation
• Compliance audit
• FSA lender reviews

11
LaRS Review Objectives

• To verify the procedures are adequate
• To confirm the accuracy to book and records
• To verify accurate billing/payment of each LaRS
  invoice
• To verify timely filing

12
Core elements of a LaRS review

• Disbursement other procedures
• Reconciliation of LaRS invoice to the general
  ledger
• Test Interest Rate Changes
• Test LaRS data elements
• Validate timeliness of LaRS submission
• Test Reporting NSLDS Data to GA

13
Review process

• Selection of entity type and scope period
• Pre-planning,(notification of documents needed,
  sampling, identify data formats, and summary data
  analysis)
• Test data accuracy of LaRS quarterly invoice(s)
  (sample calculations)

14
Review Techniques

• Compare origination lender fees to effective
  dates
• Compare interest rates to effective dates
• Compare special allowance codes to effective
  dates
• LaRS part comparison (e.g. sales)

15
Review Techniques contd

• Design your sampling spreadsheet to cover
  specific scope period requirements, in lieu of
  general requirements.
• Gear pre-plan to review LaRS for specific
  entities, such as, lender, school lender,
  exceptional performer or common review
  initiative.

16
Review Techniques contd

• Remember, LaRS data is at the summary level. Your
  sample should look at loan level detail.
• Utilize Data Mart during pre-planning for lender
  and servicer identity, lender scorecards, access
  to historical lender data (pre 2002) and monthly
  data loads for PEPS, NSLDS, LaRS
• Utilize PEPS to determine previous review
  periods, deficiencies and any liabilities paid

17
Review Techniques contd

• Utilize NSLDS to verify repayment conversion
  date, last date of attendance, borrower status,
  loan type, disbursement date, lender and
  servicing history.

18
LaRS Review Techniques contd

• Verify the accuracy of ending and average daily
  balances reported in Part IV, LARS by reviewing
  sampled loans using payment history.
• Verify that variable interest rate changes are
  updated timely and accurately.

19
LaRS Review Techniques contd

• Lender/Servicer Eligibility
• Part Comparison (e.g. accurately reporting
  disbursements in Parts I IV)
• Fee calculation

20
Timely Filing

• Utilize Data Mart to check for LaRS submission
  gaps
• Invoice must be submitted within 90 days of the
  end of the quarter

21
Challenges

• Consolidation Loan Rebate Fee
• Work with your lender/servicer to ensure timely
  payments to ED.
• ACSI Customer Satisfaction
• On-line form navigation correction
• Informed Lenders
• Servicers improve communication with clients.
• Lenders - notify FSA of personnel changes

22
Resources

• FP Portal (www.fp.ed.gov)
• Rates, Forms User Guides for guarantors
  lenders
• http//www.fp.ed.gov/PORTALSWebApp/fp/Manuals.jsp
• IFAP (www.ifap.ed.gov)
• Policy updates
• Lender Reporting Team _at_ fsa_lr_at_ed.gov

23
Technical Slide

• We appreciate your feedback and comments.
• We can be reached at
• Martha Shine, 312-886-8760
• Email martha.shine_at_ed.gov
• Angela Roca-Baker, 202-377-3322
• Email angela.roca-baker_at_ed.gov