Federal Student Aid - IFAP
   
PublicationDate: 6/1/95
AuditGuideType: Audit Guide for Schools
SectionNumber:
SectionTitle: Table of Contents
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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