Student Aid Reference Desk | 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 throu...

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 terms: Recordkeeping; Cash Management; Financial Responsibility of Institutions

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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 terms: Recordkeeping; Cash Management; Financial Responsibility of Institutions

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Academic Year Administrative Capability Audit and Program Review Cash Management Cohort Default Rate (CDR) Consumer Information Cost of Attendance (COA) Direct Loans Disbursement Enrollment Status Expected Family Contribution (EFC) Federal Supplemental Educational Opportunity Grant Program (FSEOG) Federal Work-Study Program (FWS) Financial Responsibility of Institutions Institutional Eligibility Loan Counseling Misrepresentation Need Analysis Overawards and Overpayments Packaging Payment Period Pell Grant, Iraq and Afghanistan Service Grant (IASG), and Children of Fallen Heroes Scholarship (CFHS) Perkins Loan Program Professional Judgment (PJ) Program Eligibility Program Participation Agreement (PPA) Recordkeeping Return of Title IV Funds (R2T4) Satisfactory Academic Progress (SAP) Student Eligibility TEACH Grant Third-Party Servicers Verification Written Arrangements

Statutory Authority

Web URL 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)]

Web URL 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]

Web URL 34 CFR 668.23

PDF 2022-23 FSA Handbook, Vol. 2, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, November 2021

PDF 2022-23 Foreign Schools Handbook

Publications, Articles & Other Resources

Web URL Administrative Capability AskRegs Knowledgebase Q&As

(National Association of Student Financial Aid Administrators)

Web URL Cash Management Self-Study Guide

(National Association of Student Financial Aid Administrators)

Web URL Institutional Eligibility AskRegs Knowledgebase Q&As

(National Association of Student Financial Aid Administrators)

90/10 requirement

Web URL 668.23(d)(3)

Web URL Appendix C to Subpart B of Part 668

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

Annual audit requirements for institutions

Compliance audit

Web URL 668.23(a)(2)

Web URL 668.23(b)

Web URL Electronic Announcement, 5/20/22 (GENERAL-22-28)

Web URL Electronic Announcement, 3/31/21 (EA ID: GENERAL-21-21)

Web URL Electronic Announcement, 11/5/19

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

PDF 2022-23 Foreign Schools Handbook, Ch. 2

PDF Guide for Financial Statement Audits and Compliance Attestation Engagements of Foreign Schools

Financial audit

Web URL 668.23(d)

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

PDF 2022-23 Foreign Schools Handbook, Ch. 2

PDF Guide for Financial Statement Audits and Compliance Attestation Engagements of Foreign Schools

Annual audit requirements for third-party servicers

Web URL 668.23(a)(3)

Web URL 668.23(c)

Web URL GEN-16-15

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

Appeal procedures for audit and program review determinations

General rules and procedures

Web URL Part 668, Subpart H

Exclusions

Web URL 668.111(c)

Hearing process and procedures

Web URL 668.116

Web URL 668.117

Web URL 668.118

Post-hearing appeal to Secretary

Web URL 668.119

Web URL 668.120

Web URL 668.124

Request for review

Web URL 668.113

Audit requirements for foreign institutions

Web URL 668.23(h)

Authority to examine records and interview personnel

Web URL 668.24(f)

Web URL CPA-21-01

Cohort default rate appeal auditor’s opinion

Web URL 668.213(h)

Deadlines

Payment of liabilities

Web URL 668.23(g)

Penalty for failure to submit timely and properly

Web URL 668.171(e)

Web URL 668.174(a)(3)

Submission of audit by institutions

Web URL 668.23(a)(4)

Web URL Electronic Announcement, 1/15/21 (OPE Announcements-21-05)

Web URL Electronic Announcement, 11/5/19

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

PDF 2022-23 Foreign Schools Handbook, Ch. 2

Submission of audit by third-party servicers

Web URL 668.23(c)(3)

Web URL GEN-16-15

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

Web URL 668.23(e)

eZ-Audit

PDF Federal Register, 12/11/20

Web URL Electronic Announcement, 1/15/21 (OPE Announcements-21-05)

Web URL Electronic Announcement, 7/17/20

Web URL Electronic Announcement, 4/9/20

Web URL Electronic Announcement, 11/5/19

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

PDF 2022-23 Foreign Schools Handbook, Ch. 2

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

Web URL 668.174(a)(2)

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

Web URL 668.173(c), (d), (e)

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

Web URL 668.171(d)(1)

Failure to resolve compliance issues

Web URL 668.174(a)(4)

Violation of existing loan agreement

Web URL 668.171(b)(3)(i)

Independent auditor (definition)

Web URL 668.23(a)(1)

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

Web URL 668.23(f)

Program reviews

PDF Program Review Guide for Institutions, 2017

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 8, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 8, November 2021

Record retention in case of audit or program review findings

Web URL 668.24(e)(3)

Single Audit Act

See Types of audits that satisfy annual requirement

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

Web URL Appendix A to Subpart B of Part 668

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

Web URL Appendix B to Subpart B of Part 668

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

Web URL 668.8(e)(2)

Types of audits that satisfy annual requirement

Web URL 668.23(a)(5)

Web URL Electronic Announcement, 7/17/20

Web URL Electronic Announcement, 4/9/20

Web URL Electronic Announcement, 11/5/19

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

Audit Guide p. I-1

PDF OMB Circular A-133 Subpart B, p. 8

Waiver of annual audit submission requirement, exemptions, and exclusions

Web URL 668.27

PDF 2022-23 FSA Handbook, Vol. 2, Ch. 4, August 2022

PDF 2021-22 FSA Handbook, Vol. 2, Ch. 4, November 2021

PDF 2022-23 Foreign Schools Handbook, Ch. 2

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