Student Aid Reference Desk | Audit and Program Review

Audit and Program Review

A basic requirement for continuing participation in the Title IV programs is an annual independent audit of the institution’s operations. Audit requirements run throughout the regulations, and are a major tool for the Department of Education’s oversight activities.

Related topics in this Index: Recordkeeping; Cash Management; Financial Standards

Statutory Authority

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part F—General Provisions Relating to Student Assistance Programs § 1094(c) Program participation agreements [HEA § 487(c)]

U.S. Code, Title 20—Education Chapter 28—Higher Education Resources and Student Assistance Subchapter IV—Student Assistance > Part G—Program Integrity § 1099c–1 Program review and data [HEA § 498A]

Regulation

ED References

2020-21 FSA Handbook, Vol. 2

Publications, Articles & Other Resources

Administrative Capability AskRegs Knowledgebase Q&As

Institutional Eligibility AskRegs Knowledgebase Q&As

Subtopics

90/10 requirement

Appendix C to Subpart B of Part 668

2020-21 FSA Handbook, Vol. 2, Ch. 4

Annual audit requirements for institutions

Compliance audit

Electronic Announcement, 3/29/18

2020-21 FSA Handbook, Vol. 2, Ch. 4

Financial audit

2020-21 FSA Handbook, Vol. 2, Ch. 4

Annual audit requirements for third-party servicers

2020-21 FSA Handbook, Vol. 2, Ch. 4

Appeal procedures for audit and program review determinations

General rules and procedures

Part 668, Subpart H

Exclusions

Hearing process and procedures

Post-hearing appeal to Secretary

Request for review

Audit requirements for foreign institutions

Authority to examine records and interview personnel

Cohort default rate appeal auditor’s opinion

Deadlines

Payment of liabilities

Penalty for failure to submit timely and properly

Submission of audit by institutions

Electronic Announcement, 3/29/18

2020-21 FSA Handbook, Vol. 2, Ch. 4

Submission of audit by third-party servicers

Documentation of audit records, work papers, or other audit-related documents

eZ-Audit

Electronic Announcement, 11/5/19

Subject: Single Audit Submission Requirements for Fiscal Years Ending Within Calendar Year 2019 and Future Fiscal Years

Electronic Announcement, 3/29/18

2020-21 FSA Handbook, Vol. 2, Ch. 4

Impact of audit disclosures on satisfaction of financial responsibility standards

See also top list entry for Financial Responsibility of Institutions

Audit or program review liabilities exceed certain thresholds

Audit or program review sample shows failure to return unearned Title IV funds timely

Auditor gives adverse, qualified, or disclaimed opinion, or expresses doubt about status as a going concern

Failure to resolve compliance issues

Violation of existing loan agreement

668.171(b)(3)(i)

Independent auditor (definition)

Notification of liability owed by third-party servicer to institutional clients

Program reviews

Program Review Guide for Institutions, 2017

2020-21 FSA Handbook, Vol. 2, Ch. 8

Record retention in case of audit or program review findings

Single Audit Act

See Types of audits that satisfy annual requirement

Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (GAO)

Appendix A to Subpart B of Part 668

Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (GAO)—Appendix I

Appendix B to Subpart B of Part 668

Substantiation of completion and placement rates used to qualify short programs as Title IV-eligible

Types of audits that satisfy annual requirement

Electronic Announcement, 11/5/19

Subject: Single Audit Submission Requirements for Fiscal Years Ending Within Calendar Year 2019 and Future Fiscal Years

Electronic Announcement, 3/29/18

2020-21 FSA Handbook, Vol. 2, Ch. 4

Audit Guide p. I-1

OMB Circular A-133 Subpart B, p. 8

Waiver of annual audit submission requirement, exemptions, and exclusions

2020-21 FSA Handbook, Vol. 2, Ch. 4