Audit and Program Review

• 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]

• Regulations

  • 34 CFR 668.23

• ED References

  • 2019-20 FSA Handbook, Vol. 2

• NASFAA Publications and Articles

  • NASFAA AskRegs Knowledgebase

    Search or browse the Knowledgebase for answers to regulatory and compliance questions submitted by financial aid administrators.

• Subtopics

  • 90/10 requirement

    • 668.23(d)(3)
    • Appendix C to Subpart B of Part 668
    • 2019-20 FSA Handbook, Vol. 2, Ch. 4

  • Annual audit requirements for institutions

    • Compliance audit

      • 668.23(a)(2)
      • 668.23(b)
      • Electronic Announcement, 3/29/18
      • 2019-20 FSA Handbook, Vol. 2, Ch. 4

    • Financial audit

      • 668.23(d)
      • 2019-20 FSA Handbook, Vol. 2, Ch. 4

  • Annual audit requirements for third-party servicers

    • 668.23(a)(3)
    • 668.23(c)
    • GEN-16-15
    • 2019-20 FSA Handbook, Vol. 2, Ch. 4

  • Appeal procedures for audit and program review determinations

    • General rules and procedures

      • Part 668, Subpart H

    • Exclusions

      • 668.111(c)

    • Hearing process and procedures

      • 668.116
      • 668.117
      • 668.118

    • Post-hearing appeal to Secretary

      • 668.119
      • 668.120
      • 668.124

    • Request for review

      • 668.113

  • Audit requirements for foreign institutions

    • 668.23(h)

  • Authority to examine records and interview personnel

    • 668.24(f)

  • Cohort default rate appeal auditor’s opinion

    • 668.213(h)

  • Deadlines

    • Payment of liabilities

      • 668.23(g)

    • Penalty for failure to submit timely and properly

      • 668.171(e)
      • 668.174(a)(3)

    • Submission of audit by institutions

      • 668.23(a)(4)
      • Electronic Announcement, 3/29/18
      • 2019-20 FSA Handbook, Vol. 2, Ch. 4

    • Submission of audit by third-party servicers

      • 668.23(c)(3)
      • GEN-16-15

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

    • 668.23(e)

  • 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
    • 2019-20 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

      • 668.174(a)(2)

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

      • 668.173(c), (d), (e)

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

      • 668.171(d)(1)

    • Failure to resolve compliance issues

      • 668.174(a)(4)

    • Violation of existing loan agreement

      • 668.171(b)(3)(i)

  • Independent auditor (definition)

    • 668.23(a)(1)

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

    • 668.23(f)

  • Program reviews

    • Program Review Guide for Institutions, 2017
    • 2019-20 FSA Handbook, Vol. 2, Ch. 8

  • Record retention in case of audit or program review findings

    • 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)

    • 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

    • 668.8(e)(2)

  • Types of audits that satisfy annual requirement

    • 668.23(a)(5)
    • 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
    • 2019-20 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

    • 668.27
    • 2019-20 FSA Handbook, Vol. 2, Ch. 4