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PublicationDate: 6/1/95 AuditGuideType: Audit Guide for Schools SectionNumber: SectionTitle: Table of Contents PageNumbers: CONTENTS SECTION I AUDIT PLANNING AND OTHER CONSIDERATIONS Purpose of Guide.....I-1 Engagement Periods and Report Due Dates.....I-3 Matters Requiring Immediate Action.....I-3 Auditor Qualifications.....I-4 General Planning Considerations.....I-5 Engagement Letter.....I-5 Third Party Servicer Audit.....I-5 Escrow Agent/Reimbursement.....I-5 Follow Up on Prior Audit Findings.....I-6 Site Visits.....I-6 Corrective Action Plan.....I-6 Close Out Examinations.....I-6 Student Confirmations.....I-7 Financial Statement Audit.....I-7 Management and Legal Counsel Representation Letters.....I-7 Consideration of Internal Control Structure.....I-7 85/15 Attestation.....I-8 Contact Office.....I-8 Financial Statement Reporting.....I-8 Compliance Attestation Engagement.....I-9 Consideration of The Internal Control Structure.....I-9 Materiality.....I-10 Sampling Methodology.....I-10 Sample Results.....I-12 Reporting Noncompliance.....I-12 Compliance Attestation Reporting.....I-12 Quality Control Review of Audit Reports..... I-13 Future Revisions.....I-14 SECTION II REQUIRED MANAGEMENT ASSERTIONS, COMPLIANCE REQUIREMENTS, AND SUGGESTED PROCEDURES Introduction.....II-1 Institutional Eligibility and Participation.....II-2 Reporting.....II-6 Student Eligibility.....II-8 Disbursements.....II-14 Refunds.....II-18 Cash Management.....II-22 Close Out (If Applicable).....II-24 SECTION III - ILLUSTRATIVE REPORTS AND APPENDICES Financial Statement Report on the Audit of the Basic Financial Statements...Example A-1 Report on the Internal Control Structure Based on an Audit of the Basic Financial Statements.....Example A-2 Report on Compliance Based on the Audit of the Basic Financial Statements - No Reportable Instances of Noncompliance.....Example A-3 Compliance Attestation Report Package Cover Page.....Example B Auditor Information Sheet.....Example C Report on Management's Assertions on Compliance With Specified Requirements Applicable to the SFA Programs.....Example D Summary Schedules A, B and C.....Example E Schedule of Findings and Questioned Costs.....Example F Auditor's Comments on Resolution Matters Relating to the SFA Program.....Example G Corrective Action Plan.....Example H Appendices SFA Programs' Minimum and Maximum Amounts.....Appendix A High Risk Indicators.....Appendix B Regional Inspector General for Audit & Related Offices.....Appendix C Instructions for Downloading Example E..... Appendix D ACRONYMS AND TERMS Acronym/Term -- Name/Meaning ACH/EFT -- Automated Clearing House/Electronic Fund Transfer AICPA -- American Institute of Certified Public Accountants AIS -- Auditor's Information Sheet approved by ED -- approved by the Secretary CAP -- Corrective Action Plan CFR -- Code of Federal Regulations COA -- Cost of Attendance ED -- U. S. Department of Education EFC -- Expected Family Contribution ESAR -- Electronic Student Aid Report FAD -- Final Audit Determination (formally PDL) FDLP -- Federal Direct Loan Program FFEL -- Federal Family Education Loan Pell -- Federal Pell Grant FPLUS -- Federal Parent Loan for Undergraduate Student FSEOG -- Federal Supplemental Educational Opportunity Grant FSFAH -- Federal Student Financial Aid Handbook FWS -- Federal Work Study GAAP -- Generally Accepted Accounting Principles HEA -- Higher Education Act of 1965, as amended IPA -- Independent Public Accountant ISIR -- Institutional Student Information Report OIG -- Office of Inspector General OMB -- Office of Management and Budget OPE -- Office of Postsecondary Education OSFA -- Office of Student Financial Assistance Output Document -- The SAR, ESAR or Other Document or Automated Data Generated by Processing the Free Application for Federal Student Aid PDL -- Program Determination Letter PMS -- Payment Management System RIGA -- Regional Inspector General for Audit SAR -- Student Aid Report SAS -- Statement on Auditing Standards Servicer -- Third-Party Servicer SFA -- Federal Student Financial Assistance SPRE -- State Postsecondary Review Entity SSAE -- Statement on Standards for Attestation Engagements SSCR -- Student Status Confirmation Report |