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(GEN-00-08) Requesting a waiver of the annual audit submission requirements--available for institutions that disburse less than $200,000 in Title IV funds each award year.

DCLPublicationDate: 6/1/2000
DCLID: GEN-00-8
AwardYear:
Summary: Requesting a waiver of the annual audit submission requirements--available for institutions that disburse less than $200,000 in Title IV funds each award year.


June 2000

GEN-00-08

Subject: Requesting a waiver of the annual audit submission requirements--available for institutions that disburse less than $200,000 in Title IV funds each award year.

Reference: 34 CFR 668.27

Dear Partner:

Regulations permitting a waiver of the annual audit submission requirements for certain institutions take effect July 1, 2000. If SFA grants the waiver, at the end of the waiver period the institution must submit a compliance audit for the entire waiver period and an audited financial statement for the last fiscal year of the waiver period. This letter provides instructions for requesting the waiver and summarizes the key provisions of the regulations.

An institution may request the waiver now, even though the regulations will not be effective until July 1, 2000. An institution with a fiscal year ending before this July may benefit by requesting the waiver now and thus including its current fiscal year in the potential waiver period.

This letter does not apply to the public and private, nonprofit institutions exempted from the annual audit requirements by OMB Circular A-133.

Key Provisions

Available to an institution that disburses less than $200,000 in Title IV funds each award year, has participated in the Title IV programs under the same ownership for the previous three years, and meets certain performance criteria listed in 34 CFR 668.27(c). (
The regulation is available on IFAP).

Requires that an institution obtain a Letter of Credit equal to 10% of the Title IV funds disbursed to its students in the most recent award year, and retain records for the waiver period for two years beyond the normal record-retention period.

Permits a waiver for up to three years, beginning with the fiscal year in which the school requests the waiver.

Requires a compliance audit covering the entire period of the waiver, and an audited financial statement for the last fiscal year of the waiver, due six months after the waiver ends.

How to Request a Waiver.

Go to the EAPP web site address:
www.eligcert.ed.gov
Log on using the school’s 8-digit OPEID number and 9-digit TIN number (both can be found on the Eligibility and Certification Approval Report (ECAR) that accompanied the Program Participation Agreement.
Go to Question 1: check "Update."
From the list of Update actions, select "Audit waiver request."
Go to Section L: indicate the person in authority who is submitting this request.
Click on “Submit.”

This waiver request may be submitted without a signature page. However, if the institution makes any other request or notification through the EAPP at the same time, additional documents may be requested and a signature may be required for that request or notification.

Please do not submit the Letter of Credit at this point.

SFA Determination of Waiver Eligibility.

SFA’s Case Management and Oversight Case Team will review the institution’s request. If the Case Team determines that the institution meets all other eligibility criteria, it will notify the institution to submit the Letter of Credit and provide further instructions.

Conditions Triggering Recission of the Waiver.

SFA rescinds the waiver automatically if the school disburses $200,000 or more in Title IV funds in an award year, undergoes a change in ownership that results in a change of control, or becomes the subject of an emergency action, limitation, suspension, fine or termination action.

A copy of the regulation, 34 CFR 668.27, published in the
October 29, l999 Federal Register, including the Preamble discussion of the waiver provisions, is available on IFAP.


Sincerely,

Victoria Edwards
Acting Director,
Case Management and Oversight


Enclosure: List of Case Teams is available at:
http://www.ed.gov/about/offices/list/fsa/index.html

Last Modified: 10/15/2000