Dear Financial Aid Programs Audit Client:

As a result of yet another new Audit Guide published by the U.S. Department of Education in 2000, we have revised the enclosed checklist to allow your audit to proceed as smoothly as possible. However, this planning only works when the following information is provided when indicated and/or is ready for our staff when needed.

Please read this entire checklist carefully. Your full cooperation will allow us to continue to offer quality audit services at reasonable rates and to assure your audit is completed on time.

1. Return the following items to us as soon as possible. Done
   1. The signed client representation letter, on your letterhead, which was sent to you after receipt of your signed engagement letter. Receipt of this letter prior to commencement of the audit is now required by the new Audit Guide.
   2. A list of all students that received Title IV funds (Pell, SEOG, FW-S, Perkins, FFEL (Stafford, PLUS) and/or Direct Student Loans) during the fiscal period covered by the audit. Even if the funds were returned, the student should be included!
   3. A list of all refunds made to the Title IV programs during the fiscal period covered by the audit.

      NOTE: The lists for B. and C. above must include the following information:

      • Student's complete name
      • Student's social security number
      • The Title IV programs from which funds were received and amount of such aid.
      • The student's status as your school as the last day of the audit period. (For example: If we are auditing calendar year 2000, we need the status of the student at your school as of December 31, 2000 - graduate, still in school, drop, on an approved leave)
      If a servicer is used, the above information can usually be obtained from them!
2. NOW - Request from NSLDS a letter stating that you are in compliance with the SSCR reporting requirements. Please contact us immediately if you are unaware of this letter.
3. Please provide the following information to us:
   1. Name of the Financial Aid Officer or Director
   2. The location and date opened of any branches/classroom facilities and date ED approved. Please indicate the percentage of educational programs that are provided at each location.
   3. Name of any servicer(s) used the during the period covered by this audit.
   4. Address and telephone number or area code corrections, if applicable.
   5. Name of accrediting agency and date of last accreditation visit.
4. Please send the enclosed legal representation letter, on your letterhead, to your attorney. Please send us a copy. Your attorney should respond directly to us. Audit reports cannot be released without such a response. If you do not have an attorney, please call for instructions.

1. A copy of the prior financial aid programs audit, if performed by another CPA firm.
2. If an outside servicer is not utilized, trial balances for all SFA programs as of the end of the audit period, and the most recent completed month.
3. If an outside servicer is not utilized, copies of all SFA program bank statements for the twelve months under audit. Do not copy checks or deposit slips.
4. If a program review was performed and/or closed during the audit period, please provide copies of all related correspondence and a copy of the original review.
5. If you participated in either the FSEOG, FW-S or Perkins loan programs, please provide a copy of the most recently completed FISAP report.
6. A copy of the most recently completed audit report on the school's financial statements.
7. A copy of the most recent co-hort loan default rate letter if you participated in the FFEL or Direct Loan programs.
8. If you admitted any ATB (ability-to-benefit) students during the year under audit, please provide the following information:
   1. A list of all ATB students and the ATB test that was given that student
   2. Names and addresses of testing persons or agencies
9. If you have received a new Program Participation Agreement and related certification documents from ED since the last audit was performed, please provide us a copy.
10. A copy of your most recent accreditation acceptance and your most recent state license.
11. The following documents should be printed by accessing the Department of Education's electronic reporting and payment systems. If a servicer is used, these documents should be requested from the servicer.
    1. EDGAPS Activity Report - Cumulative Summary. (Please request for a period starting at least 6 months before the audit period.)
    2. EDGAPS Authorization History reports covering entire audit period.
    3. EDGAPS Payment Requests reports for entire audit period.
    4. EDGAPS Drawdown Adjustments reports for entire audit period.
    5. FPELL Student Payment Summary (NOTE: This report must be requestd in advance since it requires time by ED to prepare. Request it NOW!)
    6. FPELL Statement of Account.
    7. EDGAPS Direct Loan Payment Requests report for audit period.
    8. EDGAPS Direct Loan Drawdown Adjustments reports for entire audit period.
12. Do not copy, but have available for us all Student Status Confirmation Reports received during the audit period.
13. If you participated in the Federal Work-Study program, please have available all payroll records and any other disbursement records and documents for all FW-S employees. W-2 copies, if issued, should be available.
14. Do not copy, but have available for us payroll records for all institutional employees. If we will need to review payroll records with another person or department, please make arrangements for them to be available during our audit visit.
15. A copy of the institution's standards for satisfactory academic progress.
16. A copy of the institution's Program for Drug Abuse and Counseling Program.
17. Student consumer information provided:
    1. Campus security report (most recent three years) and information how such information is disseminated to students)
    2. Graduation and placement statistics
18. Please have available the cancelled checks for all refunds made to the Title IV programs or lenders during the audit period. Do not copy the checks. Please also have available: bank statements for any Perkins billing and/or collection accounts, as well as documentation concerning collection activities, allocation of principal and interest, etc. if an outside collection agency is not used.
19. The following ratios must be computed and the results either noted below or stated in separate documents:
    1. Correspondence or telecommunication courses comprise _______% of the courses offered by this school.
    2. For the purpose of obtaining a degree, certificate or diploma, _______% of our students are enrolled in correspondence courses.
    3. Of our regular students, ______% are incarcerated.
    4. Of our regular students, ______% are without a high school diploma or the equivalent.
20. Please provide a comfortable place for the auditor(s) to work. You may wish to contact us to determine how many auditors will visit your facilities. Please have all personnel with whom the auditors will work, informed of our dates of audit field work so that they will be present. Please also inform all necessary personnel that they must be available between 8:30 a.m. and 5:30 p.m., unless informing us to the contrary before we come to the institution.

1. After examining your student and institutional files, and other documents, an exit interview will be conducted. We will discuss the audit findings with you and inform you if additional information is still required. Please provide us with any additional requested information as soon as possible. We will pleased to also discuss with you areas of improvement noted during the audit, as well as areas of notable improvement.
2. As soon as all work is completed, including receipt of any documents requested from you, a "draft" of the audit report will be sent to you for review by you. Please read the report carefully and bring any corrections or disagreements to our attention.
3. Upon receiving the "draft", you must prepare a corrective action plan for each finding cited. This corrective action plan must be on your institution's letterhead and signed by an institutional official, preferably the President/CEO. A copy of this corrective action plan must be sent us for inclusion in the audit report. The original corrective action plan must be sent to the U.S. Department of Education with the audit report copies provided to you.
4. We we have copies of all information requested, the institution's corrective action plan and all invoices have been paid, the final audit report will be sent to you with instructions for filing with the U.S. Department of Education. Sufficient copies will be sent for U.S. Department of Education and two for the institution. Additional copies will be provided upon request. Also an address label and instructions will accompany the audit reports.
5. AUDIT DEADLINE:
   The audit reports are due to the U.S. Department of Education six months after the institution's fiscal year-end. For example, an institution that has a fiscal year-end of September 30th must have submitted its annual SFA audit report and audited financial statements by the following March 31st.