Student Financial Assistance Audits

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SFA Audits - Specific Guidance

NOTE: These Guides are not intended to be a complete manual of procedures, nor intended to supplant the IPA's judgment of the work required. The IPA should recognize that laws and regulations change and delays will occur between such changes and revisions to these Guides; however, the IPA is responsible for determining the applicable laws and regulations to audit. The suggested procedures in these Guides may not cover all circumstances or conditions encountered at a particular school or institution. The IPA should use professional judgment and due care to tailor the audit procedures so that the appropriate financial audit and compliance engagement objectives are achieved. However, all applicable management assertions for the compliance engagement prescribed by the relevant Guide must be addressed by the IPA.

A. SFA Programs Included in A-133 Single Audits

1. Instructions for obtaining borrower disbursement information for the Direct Loan Program in A133 or SFA Audits Microsoft Word [69K] or PDF [15K]

2. OMB A-133 2009 Compliance Supplement (March 2009)

3. Circular A-133 Compliance Supplement, Addendum 1 (June 30, 2009)

4. OMB A-133 2010 Compliance Supplement (June 2010)

5. OMB A-133 2011 Compliance Supplement (March 2011)

6. OMB A-133 2012 Compliance Supplement (March 2012)

B. School/School Servicer Audits

1. School/Servicer Audit Guide (2000) PDF [470K]

1a. Dear CPA Letter No. 07-01 (Issued August 2007) – Amendment to School/Servicer Audit Guide to cover Academic Competitiveness Grants (AGC) and National Science and Mathematics Access to Retain Talent (SMART) Grants Word [216K] or PDF [158K]

1b. Dear CPA Letter No. 07-03 (issued September 2007) - Amendment to January 2000 Audit Guide, Audits of Federal Student Financial Assistance Programs at Participating Institutions and Institution Servicers – Prohibited Inducements Paid by Lenders and Denying Students' Access to Lenders and Guaranty Agencies of Their Choice. Word [208K] or PDF [112K]

2. Summary of Changes to School/Servicer Audit Guide (2000) [Last Updated September 27, 2007] Word [34K] or PDF [14K]

3. Instructions for obtaining borrower disbursement information for the Direct Loan Program in A133 or SFA Audits Microsoft Word [69K] or PDF [15K]

4. Template for Preparing Example E, Schedules A,B,C (SFA Audit Guide) Word [133K] or PDF [31K]

5. Dear Colleague Letters - Main Index

6. Dear Colleague Letter GEN-00-08 Requesting a waiver of the annual submission requirements - Institution Audits

7. ED/OIG Dear CPA Letter (CPA-99-01) on the calculation of 85/15 Revenue Tests Microsoft Word [31K] or PDF [16K]

8. ED/OIG Dear CPA Letter (CPA-99-02) on the calculation of 90/10 Revenue Tests PDF [339K]

9. Federal SFA Handbook (Excellent Resource for Assistance on SFA Audits)

10. Interest Rates to use in the calculaton of late refunds for Direct Loans, PELL, and SEOG funds

11. Procedures for Liquidating Perkins Loan Program (08/05/11)

12. Q & As on SFA Audits with No Audit Findings PDF [7K]

13. Foreign School Audit Guide (2002) (Word [605K], (PDF [406K], or Amendment No. 1 to Foreign School Audit Guide (8/2003) PDF [683K] - Amendment No. 2 (8/30/2006): Word [90K], PDF [180K]

C. Lenders/Lender Servicer Audits

1. Lender Compliance Attestation Engagement Guide for Lenders Holding Federal Family Education Loan Program Loans (issued January 2011) - Effective for engagements of fiscal years ending on or after June 30, 2011 (early implementation optional) Word [246K], PDF [292K]

2. Lender Servicer Financial Statement Audit and Compliance Attestation Guide for Lender Servicers that Servicer Federal Family Education Loan Program Loans (issued January 2011) - Effective for engagement of fiscal years ending on or after June 30, 2011 (early implementation optional) Word [195K], PDF [288K]

3. Lender/Servicer Audit Guide (issued December 1996) for fiscal years ending before June 30, 2011 PDF [304K]

3a. Amendment No. 1 to December 1996 Audit Guide, Compliance Audits (Attestation Engagements) for Lenders and Lender Servicers Participating in the Federal Family Education Loan Program (Lender Audit Guide) - Word [92K], PDF [229K]

3b. Dear CPA Letter No. 08-01 (Issued March 27, 2008) - Amendment to December 1996 Audit Guide, Compliance Audits (Attestation Engagements) for Lenders and Lender Servicers Participating in the Federal Family Education Loan Program (Lender Audit Guide) - Prohibited Inducements Paid by Lenders to Postsecondary Institutions or Other Parties. Word [292K] or PDF [87K]

4. Auditor's Guide: For audits to ensure the accuracy of certain Federal Family Education Loan Program special allowance payments (April 2007). PDF Bond Spreadsheet: MSExcel Small Lenders Bond Spreadsheet: MSExcel

5. Dear Financial Partner Letters

6. Due Diligence Fraud Indicators At Lenders/Servicers PDF [11K]

7. Information for Lender's Financial Partners Portal

8. Permament Extension of Lender Audit Requirements - Reauthorization of HEA (Oct 98)

9. Dear CPA Letter 08-02 (Issued September 26, 2008), Required Examination-Level Attestation Reports for Lenders Participating in the Federal Family Education Loan (FFEL) Program that Request Special Allowance Payments at the 9.5 Percent Minimum Return Rate for FFEL Program Loans Acquired with Funds Derived from Eligible Tax-Exempt Financing Sources. Word [141K] or PDF [207K]

10. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Loan Participation Program – First Edition - (Issued October 17, 2008) Word [502K] or PDF [349K]

11. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Loan Participation Program and Loan Purchase Commitment Program for the 2008-2009 Academic Year – Second Edition - (Issued December 9, 2008). Word [3.18M] or PDF [2.98M] [Note: This Guide supersedes the first edition (Item C 10, above)]

11a. Amendment No. 1 - (Issued August 3, 2009) Word [292K] or PDF [59k]

11b. Amendment No. 2 (Issued October 5, 2009) Word [302K] or PDF [44k]

12. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Short Term Purchase Program for the 2007-2008 Academic Year (Issued March 4, 2009) Word [2.5M], PDF [871K]

13. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Asset-Backed Commercial Paper (ABCP) Conduit Put Program for Seller’s and Eligible Direct Issuer’s Compliance with Selected Criteria for Putable Loans (Issued April 22, 2009) Word [551K], PDF [570K]

13a. Amendment No. 1 (Issued August 3, 2009) Word [276K] or PDF [45k]

13b. Lender ID and Name List (Issued August 3, 2009) MS Excel [471K]

13c. Amendment No. 2 (Issued May 24, 2010) Word [144K] or PDF [60k]

14. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Loan Participation Program and Loan Purchase Commitment Program for the 2009-2010 Academic Year. (Issued October 19, 2009) Word [2MB] or PDF [1MB]

15. Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 ECASLA) Loan Participation Program for Loans for Academic Years 2008-2009 and 2009-2010 Custodian’s Compliance with the Master Participation Agreement. (Issued April 26, 2010) Word [247K] or PDF [180K]

16. Agreed Upon Procedures (AUP) Attestation Engagement Guide for the Ensuring Continued Access to Student Loans Act of 2008 (ECASLA) Asset-Backed Commercial Paper Conduit Put Program – Funding Note Issuer’s Compliance with Selected Criteria for Eligible Loans. (Issued June 30, 2010) PDF [2.28M]

16a. Amended and Restated Funding Note Purchase Agreement Effective April 26, 2010 - Appendix A - Definitions PDF [196K]

D. Guaranty Agencies/Servicer Audits

1. Guaranty Agency Servicer Audit Guide (2000) PDF [232K] - Amendment No. 1 (8/30/2006): Word [68K], PDF [201K]

2. Summary of Corrections (Last Update 4/14/00) to Guaranty Agency Servicer Audit Guide (2000) Word [19K]or PDF [2K]

3. Dear Financial Partner Letters

4. Directory of State Guaranty Agencies

5. State Higher Education Agencies