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 Feel Introduce the 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 17

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 32

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 Plan to: Identify compliance 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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