Session #13

FSA Assessments:
An Opportunity to Improve
Compliance

Julie Arthur
David Bartlett
What are the FSA Assessments?

Tools to:
Prevent non-compliance

Identify compliance
issues

Establish Action
Planning steps to correct
problems

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Why use the FSA Assessments?

• Ensure Title IV compliance

• Prepare for an audit
• Prepare for a program review
• Correct deficiencies and eliminate
repeat findings
• Develop or update policies and
procedures

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Standards for Participation
• Program Participation
Agreement
• Factors of financial responsibility
• Standards of administrative
capability

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Importance of Administrative
Capability
• Administrative capability: a
standard for participation
• 34 C.F.R. § 668.16 “Standards
of Administrative Capability”
• Program review and audit
findings may indicate lack of
administrative capability

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Using Findings to Improve
Compliance
• Program review and audit findings
are good starting point for
diagnosing
• Review past findings and develop
policies and procedures to prevent
problems from recurring
• Repeat findings indicate problems
that have not been corrected

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Findings With Significant
Liabilities
• Return of Title IV Funds
–Returns not Made
–Calculation Errors
–Made Late
• Verification Violations

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Findings With Significant
Liabilities

• Account Records Inadequate/not

Reconciled
• Inconsistent Information in
Student File
• Lack of Administrative Capability

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Correcting and Preventing Findings

• Return of Title IV Funds (R2T4)

Errors, Incomplete, Late,
Missing

• Verification Incomplete,
Missing, Errors

• Title IV Accounts Not Reconciled

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Where to find the Federal
Student Aid Assessments

• IFAP
http://ifap.ed.gov

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Where to find the Federal
Student Aid Assessments
•School Portal
http://FSA4schools.ed.gov

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The Redesign of the Assessments

New Look and Introduce the

Feel New Policy
and Procedure
Assessment

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FSA Assessments – Four Categories

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FSA Assessments Chart

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FSA Assessments Chart

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Correcting and Preventing Findings

• Return of Title IV Funds (R2T4)

Errors, Incomplete, Late,
Missing

• Verification Incomplete,
Missing, Errors

• Title IV Accounts Not Reconciled

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FSA Assessments – Policies and
Procedures
Return of Title IV Funds (R2T4) Errors,
Incomplete, Late, Missing

•Managing Funds - Review R2T4

Assessment
•Policies and Procedures Assessment
•Policies and Procedures At a Glance
•Activities

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Return of Title IV Funds

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Return of Title IV Funds

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Getting Started Developing
Policies and Procedures

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Getting Started with P & P

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P & P at a Glance

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P & P At a Glance

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Correcting and Preventing Findings

• Return of Title IV Funds (R2T4)

Errors, Incomplete, Late,
Missing

• Verification Incomplete,
Missing, Errors

• Title IV Accounts Not Reconciled

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FSA Assessments - Activities
Finding: 2 – Verification Incomplete

• Review Verification Assessment - Students

• Policies and Procedures
• Activity 4: Resolving Conflicting Data
• Activity 5: Professional Judgment

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FSA Assessments – Verification

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Verification
Activity 4
and
Activity 5

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Verification Activity 4

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Verification Activity 5

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Activity 5 continued…

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Correcting and Preventing Findings

• Return of Title IV Funds (R2T4)

Errors, Incomplete, Late,
Missing

• Verification Incomplete,
Missing, Errors

• Title IV Accounts Not Reconciled

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Reconciliation Worksheets
Finding: 3 – Title IV Accounts Not
Reconciled

• Select Managing Funds – Fiscal

Management
• Select Activity 1 – Reconciliation
Worksheets
• Review Year End and Monthly
Worksheet

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Managing Funds – Fiscal Mgmt

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Reconciliation & Fiscal Mgmt

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Reconciliation Worksheets

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Fiscal year end worksheet

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Management Enhancement
An
Action Identify compliance
Plan to: issues

Assign the issue for

correction

Design a Corrective
Action Plan

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Management Enhancement
Worksheet

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Management Enhancement
Worksheet continued…

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Effective Practices
• Innovation – Effective Practices
• Opportunity to review a
successful practice reported by
one of your colleagues
• Opportunity to report a
successful practice to the
Department

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FSA Assessments: Innovation

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Effective Practices

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Current Effective Practices

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 Importance of Offices
Working Together

“It’s a fact that people

working as a team can
achieve better results than
individuals working alone.”

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Summary
• If we can find it – so can you!
• Use the Assessments to fix problems
before the auditor or program
reviewer finds it
• Team Approach to the assessments
is critical
• Use the Management Enhancement
as a corrective action plan and track
progress

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Questions

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Contact Information
We appreciate your feedback and comments. We can be
reached at:

• Julie Arthur
• Phone: 206-615-2232
• Email: julie.arthur@ed.gov
• Fax: 206-615-2508

• David Bartlett
• Phone: 816-268-0434
• E-mail: david.bartlett@ed.gov
• Fax: 816-823-1402

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