SACS Fifth Year Interim Report

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SACS Fifth Year Interim Report CS
3.10.3 Required Federal and State Financial Aid
Audits The institution audits financial
aidprograms as required by federal andstate
regulations.  
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SACS Fifth Year Interim Report CS
3.10.3Required Federal and State Financial Aid
Audits Handbook for Reaffirmation of
Accreditation P 70

• Supporting Documents
• Financial Aid Audits

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SACS Fifth Year Interim Report CS
3.10.3Required Federal and State Financial Aid
Audits Resource Manual for The Principles of
Accreditation pages 64-65

• Rationale and Notes
• Financial aid programs often have an important
  and significant impact on the finances of an
  institution. Many institutions and their students
  are highly dependent on federal and state funds,
  thus continued compliance with regulations is
  critical to long-term financial health.
  Institutional integrity dictates that if
  governmental funds are accepted, governmental
  regulations will be followed. A full program of
  audit using the OMB A-133 audit procedure is
  necessary to determine the accountability and
  integrity of an institutions financial aid
  program.

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SACS Fifth Year Interim Report CS
3.10.3Required Federal and State Financial Aid
Audits Resource Manual for The Principles of
Accreditation pages 64-65

• Relevant Questions for Consideration
• For public institutions
• Did the institution receive an unqualified
  opinion in the auditors report on compliance
  and on internal control over financial reporting
  based on an audit of auditing standards? Have
  there been findings? If so, have they been
  resolved? Are findings repeated and unclear?
• Is the institution on electronic transfer or
  has it been placed on direct reimbursement
  method for federal funds?
• Has the institution been obligated to post a
  letter of credit on behalf of the U.S.
  Department of Education or other financial
  regulatory agencies?

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SACS Fifth Year Interim Report CS
3.10.3Required Federal and State Financial Aid
Audits Resource Manual for The Principles of
Accreditation pages 64-65

• Sample Documentation
• Audits of financial aid programs for the past 3
  years
• Institutional responses to all audits and/or
  findings
• Copies of all correspondence received from the
  U.S. Department of Education for the past 3 years

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SACS Fifth Year Interim Report CS
3.10.3 Required Federal and State Financial Aid
Audits Directions for Completion of Fifth-Year
Interim Report- Addendum B

• What types of documentation, or patterns of
  evidence, would document compliance with the
  standard?
• Most recent external audit of federal financial
  aid programs.
• Most recent external audit of state financial
  aid programs.
• If public, documentation from auditor
  indicating audit schedule and frequency.
• Recent copies of correspondence received from
  the U.S. Department of Education related to
  delays in receiving, or not receiving, federal
  awards audit information.

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SACS Fifth Year Interim Report FR 4.7 Title IV
ComplianceThe institution is in compliance with
its program responsibilities under Title IV of
the1998 Higher Education Amendments. (In
reviewing the institutions compliance withthese
program responsibilities, the Commission relies
on documentation forwarded toit by the U.S.
Secretary of Education.) 
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SACS Fifth Year Interim Report FR 4.7 Title
IV Compliance Handbook for Reaffirmation of
Accreditation P 72

• Supporting Documents
• Document that describes compliance with Title IV

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SACS Fifth Year Interim Report FR 4.7 Title IV
Compliance Resource Manual for The Principles of
Accreditation pages 73-74

• Rationale and Notes
• Many institutions are dependent upon the
  availability of Title IV financial aid to assist
• students with their educational expenses and
  maintain adequate levels of enrollment. In
• order to secure these funds, an institution
  complies with the program responsibilities
• under Title IV of the 1998 Higher Education Act
  or risks the loss of federal aid for both
• its students and other organizational needs.
• As the primary gatekeeper for many of its member
  and candidate institutions seeking
• Title IV funds, the Commission is obligated to
  review any information submitted by
• the institution or provided by the U.S.
  Department of Education that could affect an
• institutions continued compliance with
  Commission standards. Under this standard,
• institutions are required to submit to the
  Commission any communication from the U.S.
  Department of Education related to continued
  compliance with Title IV provisions.

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SACS Fifth Year Interim Report FR 4.7 Title IV
Compliance Resource Manual for The Principles of
Accreditation pages 73-74

• Relevant Questions for Consideration
• What issues exist with Title IV programs for the
  institution, if any?
• Has the institution been placed on the
  reimbursement method?
• Has the institution been required to obtain a
  letter of credit in favor of the
• Department of Education?
• Have complaints been filed with the Department
  of Education regarding the institution?
• Do the independent audits of the institutions
  financial aid programs evidence
• significant noncompliance?
• Are there significant impending litigation
  issues with respect to financial aid
• activities?
• Are there significant unpaid dollar amounts due
  back to the U.S. Department of
• Education?
• Has adverse communication been received from
  the Department of Education? If
• so, what was the institutions response?
• What is the institutions student loan default
  rate?
• Is the institution aware of infractions to
  regulations which would jeopardize Title IV
• funding?

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SACS Fifth Year Interim Report FR 4.7 Title IV
Compliance Resource Manual for The Principles of
Accreditation pages 73-74

• Sample Documentation
• Copies of all recent, relevant correspondence
  from the U.S. Department of Education
• Copies of institutional responses to U.S.
  Department of Education correspondence
• Negotiated settlement agreements for the payoff
  of any fines or monies owed in connection with
  program or fiscal audits
• Copies of any reports on compliance from the U.S.
  Department of Education

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SACS Fifth Year Interim Report FR 4.7 Title
IV Compliance Directions for Completion of
Fifth-Year Interim Report- Addendum B

• What types of documentation, or patterns of
  evidence, would document compliance with the
  standard?
• Most recent OMB A-133 financial aid audit report
• Institutional response to findings in the
  financial aid audit report
• Copies of recent correspondence from the U.S.
  Department of Education
• Copies of institutional response to U.S.
  Department of Education correspondence
• Details regarding negotiated settlement
  agreements for the payoff of any fines or monies
  owed in connection with program or fiscal audits
• Copies of any reports on compliance from the U.S.
  Department of Education

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SACS Fifth Year Interim Report CS 3.10.3and FR
4.7 Financial Aid Audits and Compliance

• Two samples of documentation
• Mountain View College- Monitoring unknown
• TEXT
• Mountain View College is in compliance with its
  program responsibilities under Title IV of the
  1998 Higher Education Amendments. MVC as a part
  of the Dallas County Community College District,
  is annually audited by independent auditors. The
  auditors review the financial statements and
  compliance with Title IV as part of the audit.
  The financial statement and Office of Management
  and Budget Circular A-133 Supplemental Financial
  and Compliance Report for each of the last five
  years, have been in conformity with generally
  accepted accounting principles.
• Mountain View College, doing business as Dallas
  County Community College District (DCCCD,) has a
  current Program Participation Agreement with the
  U.S. Department of Education for Federal Student
  Aid. MVC (DCCCD) also has a current Agreement
  to Participate in Financial Aid Programs
  Administered by the Texas Higher Education
  Coordinating Board.

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SACS Fifth Year Interim Report CS 3.10.3and FR
4.7 Financial Aid Audits and Compliance

• Two samples of documentation
• Mountain View College- Monitoring unknown
• Documentation
• DCCCD August 2007 Financial Statements and OMB
  Circular A-133 Supplemental Financial Compliance
  Report Together with Reports of Independent
  Auditors (pages 80-82)
• USDE 2003-2009 Federal Student Aid Program
  Participation Agreement
• THECB 2007 Agreement to Participate in Texas
  Financial Aid Programs

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SACS Fifth Year Interim Report CS 3.10.3 and FR
4.7 Financial Aid Audits and Compliance

• Two samples of documentation
• A Georgia Technical College- Monitoring
  Known-No Monitoring
• TEXT pg 1
• XXXX Technical College is in compliance with its
  program responsibilities under Title IV of the
  1998 Higher Education Amendments as supported by
  the Approval Notice dated 08/05/2008 and the
  Eligibility and Certification Approval Report.
  The College currently participates in the Federal
  Work-Study program, the Federal Pell Grant
  program and the Federal Supplemental Educational
  Opportunity Grant program. As a technical college
  in Georgia, XXXXs student financial aid
  activities are subject to periodic limited
  compliance audits as part of the Georgia Student
  Finance Commission on a three year cycle and will
  be reviewed near the close of FY2009. There are
  no outstanding issues between the Department of
  Education and XXXX with regard to the
  administration of the Title IV programs and no
  known complaints have been filed with the
  Department regarding XXXXs administration of
  Title IV. XXXXs current participation agreement
  is valid through June 30, 2013. The U.S.
  Department of Education has not audited the
  Office of Financial Aid in the past three years.

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SACS Fifth Year Interim Report CS 3.10.3 and FR
4.7 Financial Aid Audits and Compliance

• Two samples of documentation
• A Georgia Technical College- Monitoring
  Known-No Monitoring
• TEXT pg 2
• There are no significant unpaid dollar amounts
  due back to the Department and the institution is
  not aware of any infractions to regulations which
  would jeopardize Title IV funding.
• XXXX Technical Colleges financial aid program
  accounts are audited in accordance with the
  Georgia Department of Audits and Accounts on an
  annual basis. In the audit report for FY2007, the
  College received no findings.
•  
• The Georgia Student Finance Commission performs
  a periodic program review of the State
  Scholarships and Grant Programs that are offered
  through the Office of Financial Aid.  This review
  was performed on May 9, 2006, and covered all
  State Scholarships and Grant Programs awarded for
  the 2004-2005 award year. The program review did
  produce one finding.  The finding has been
  resolved and is not a repeated finding. 

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SACS Fifth Year Interim Report CS 3.10.3 and FR
4.7 Financial Aid Audits and Compliance Two
Samples of Documentation-

• A Georgia Technical College- Monitoring
  Known-No Monitoring
• Supporting Documentation
• US Department of Education Participation
  Agreement
• US Department of Education Approval Letter
  (August 5, 2008)
• US Department of Education Eligibility and
  Certification Approval Report
• Georgia Student Finance Commission Audit
  (response and follow-up)
• Audit Report FY2007

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SACS Fifth Year Interim Report CS 3.10.3 and FR
4.7 Financial Aid Audits and Compliance

• Comparison of Two samples of documentation
• Mountain View College monitoring unknown
• Financial Statements and OMB A-133
• Program Participation Agreements- Federal and
  State
• No most recent external audit federal and
  state
• No audit schedule and frequency
• No reference to issues or unpaid funds to USDE
• A Georgia Technical College known no monitoring
• Federal Program Participation Agreement
• USDE Approval letter
• USDE Eligibility and Certification Report
• States no issues with USDE, not unpaid funds to
  USDE
• States and documents audit ,one finding and
  resolution with Georgia Student Finance
  Commission
• Sates but does not document audit frequency nor
  schedule
• Most recent external audit report federal and
  state
• No OMB A-133

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SACS Fifth Year Interim Report CS 3.10.3 and FR
4.7 Financial Aid Audits and Compliance GCSU
Past Documentation - 2004

• FEDERAL MANDATE  8 -- Compliance with Title IV
• Approximately 70 of GCSU students receive aid
  from federal, state, institutional, or private
  sources.  GCSU is in compliance with program
  responsibilities under Title IV of the 1998
  Higher Education Amendments.  The dominant
  financial aid packages at GCSU are the
  need-based Pell Grant and the Georgia merit-based
  HOPE scholarship.  A comparison of Pell and HOPE
  shows the growth in HOPE since 1998.
• GCSU has a valid and current Program
  Participation Agreement with the United States
  Department of Education to administer these
  federal programs.
• All federal aid programs have mandated reporting
  and reconciliation requirements.  Required
  reports are completed prior to deadline dates. 
  The following reports are available in the
  Financial Aid Office (103 Parks Hall)
• Fiscal operations reports for reporting federal
  campus-based programs
• Federal Pell grant reconciliation reports
• Monthly direct lending reconciliation reports.  
• Also available in the Financial Aid Office are
  reports of federal loan default rates.  GCSU has
  consistently been below the national and state
  average default rates.  In addition to other
  activities, the Financial Aid Office works with
  students for default awareness through loan
  entrance counseling and exit counseling.
• The GCSU Financial Aid Office produces a
  publication entitled GCSU Financial Aid Guide
  (see Financial Aid Types of Aid) to inform all
  prospective and returning students of aid
  programs and the regulations and policies used in
  eligibility determination.  Included in this
  publication is the Satisfactory Academic Progress
  Policy, which is mandated by the Higher Education
  Amendments.