Financial Aid
It seems as though the main area that should be routinely internally audited would be financial aid because of all of the components and specifics. Do you think that this is the case?
There are certainly a heavy amount of regulations driven by the Dept of Education tied to Title IV aid. However, some of the areas that impact compliance with those regulations are typically in other departments such as the registrar's office for attendance and satisfactory academic progress. There are also regulations from accreditors and state agencies which must be adhered to that still tie back to the Dept of Ed since eligilbity is related to each of those entities. Additionally, there is already a requirement for a regular third party audit of the FA area so you may already have this area somewhat covered. Financial Aid is a good place to start but, I would suggest broadening the scope for internal reviews.
Absolutely at this time. Although,all areas should be internally audited: Admissions/ Academics/ Enrollment AND Financial Aid.
We audit after each class graduates.
We just experienced an audit and the focus seemed to be primarily in financial aid with the emphasis placed on teh timing of disbursements and refunds. The DOE really wants to make sure schools are not disbursing early (registrar function is important), hanging onto funds too long, and correcting any mistakes in a timely manner. One of the other big things is to make sure all the proper notifications are going out to students anytime there is activity in their account.
Actually, I believe that Financial Aid is the most important area to be clear in order to guaranteed Chapter IV funds. Another office that I think that is very sensitive is Registrar because is the one that works with some legal documents as: High School Diploma, GED Certification, Foreign Documents and many others.
While it would seem that the focus of internal audits should be/would be on financial aid, I believe that admissions is equally important. The integrity of the school rests on those being admitted and admissions is under a lot of stress with enrollment quotas. To bad that there is so much emphasis on filling the quotas that it may result in dragging down the reputation of the school.
Mary,
I think that almost every department in a school should have internal audits. The registrar's office, career services, and admissions, as you noted, should be included in addition to financial aid. In this highly regulated environment, every department needs to be aware of and practicing compliant processes.
Traci Lee
I would also include the records department in the list that needs to be audited. For one regulatory agencies require strict rules on attendance, grades, and transcripts. We not only need to keep certain forms in a each student's permanent record but we also need to track and monitor student requests etc. In addition to the rules set by regulatory agencies, any school that accepts grants or scholarships probably have additional requirements that need to be recorded in student permanent files.
Renee,
Absolutely the records department needs to be included, as you noted. These records are critical on their own AND for their impact on other areas, such as financial aid.
Traci Lee
I think you're right that financial aid is one of the most important one on the internal audits and the reasons is because on this department we handled very important information for federal funds.
Ricardo,
I agree about the importance of financial aid audits. Remember that other departments (i.e. Registrar) can impact the outcome of those audits so there may be other areas "touched" but such.
Traci Lee
I agree that the FA Dept is one that should always be under a microscope. However, as many others have mentioned, it is a piece the whole puzzle and each department is equally important for auditing purposes. Our institution has an internal audit system in place for our FA Dept. Once a student is packaged, that file gets audited by someone other than the advisor who helped package the student. If problems are found, the corrections are made, then the file is resubmitted to that internal auditor for another review. About 2 weeks prior to graduation, all FA files go through a final audit to ensure that everything is in place in that file. We've used this system at our institutions for years and have very rarely had findings in the FA Dept.
Mary,
This sounds like a great cross check process that reduces audit findings and possibly also provides feedback for training areas when problems are found.
Traci Lee
I think that above all the FA office has to be under the microscope because audits in FA equates to "proxy audits" of the other departments.This is so because the FA department touches so many other departments that an audit of it forces audits of the others. For instance, an audit of FA my bring light to the fact the proof of HS completion is not being obtained or that the SAP procedures are not being followed
Christopher,
Great point on the inter-relationship of FA with other departments. It makes the "owner" of the responsibility mixed since FA ultimately answers to audits but other departments, such as academic and/or registrar have on areas such as those you identified.
Traci Lee
With ED becoming more involved in the accreditation process we are looking more at the accreditation body requirements to ensure compliance with those areas (which address all functions of the school). Financial Aid has been the most regulated department in the past, but ED seems to be adding a focus on to institutional outcomes (completion results, job prospects, debt accumulation). We need to shift our thinking to an overall internal audit structure to make sure we are offering a good overall product and setting our students up for success in the workforce.
Jill,
Great points - The increased scrutiny from other approval bodies beyond Dept of Ed warrants review and updates to any internal audit checklist with areas of focus. Accrediting bodies, state agencies and any other authorities should be considered.
Traci Lee
I think there are other departments to be considered. Since almost all the federal regulations comes through financial aid, internal audits should be at least once a year and should include all the departments in the school.
Daisy,
You are correct that many federal regulations come through financial aid and I am glad you emphasized the need for all departments to be included in an internal audit since departments have many inter-dependencies.
Traci Lee
Do think so. Even when Admissions, Registrars,and Bursars office are included, most of the weight falls at the Financial Aid Office. We do the training and relay information about regulatory procedures to them!
