Federal regulations require the FAO have its records and student files audited every year by a private accounting firm. Program Reviews are performed by the Department of Education as requested.
Auditors review a sample of student aid files to ensure the FAO is in compliance with federal, state, and college polices. The auditors submit a preliminary memorandum of findings to the Director of Financial Aid and the Comptroller who conduct research and prepare a response addressing resolution of the specific discrepancy and appropriate procedures to correct faulty processing.
The only preparation for the audit is to cooperate with the Auditors’ requests. Typically, the Auditors will randomly select a specific number of students from each of the Title IV programs. The files are pulled and given to the Auditors. Any additional assistance requested is responded to promptly.
A complete listing of financial aid audit guidelines is listed in the Audit Guide published by the U.S. Department of Education.
The Financial Aid Director is the liaison between the FAO and the Auditor.