The Higher Education Act of 1965, as amended, requires annual financial and compliance audits of Title IV HEA programs for all institutions that participate in in FSA programs. Schools are required to arrange for regular independent audits that include the operation of the Federal Student Aid programs.
According to the U.S. Department of Education, these are the top ten audit findings from institutions annual FSA Audits conducted by IPAs and CPAs.
- Repeat Finding – Failure to Take Corrective Action
- NSLDS Roster Reporting – Inaccurate/Untimely Reporting
- Return to Title IV (R2T4) Calculation Errors
- Return to Title IV (R2T4) Funds Made Late
- Verification Violations
- Pell Grants – Overpayment/Underpayment
- Qualified Auditor’s Opinion Cited in Audit
- Entrance/Exit Counseling Deficiencies
- Student Credit Balance Deficiencies
- Improper Origination of Direct Loans
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