Posted Date:January 17, 2012
|Author:||Robin Minor, Chief Compliance Officer, Federal Student Aid|
Subject: Citing Institutions for Late Annual Audit Submissions
In order to participate in federal student aid programs, schools must generally submit an audit conducted by an independent auditor that includes a compliance audit and audited financial statements in accordance with 34 C.F.R.§ 668.23. Audits not received (missing) or submitted after the due date (late) demonstrate a lack of administrative capability and financial responsibility and may indicate mismanagement of federal student financial aid funds.
To reduce risk and safeguard taxpayers’ interests associated with late or missing audit submissions, the Department of Education is bolstering enforcement of the existing past performance regulations in 34 C.F.R. § 668.174(a)(3).
Further, 34 C.F.R.§ 668.171(e) provides that an institution’s failure to submit compliance and financial statement audits by the date permitted and in the manner required under 34 CF.R.§ 668.23 may result in the Department initiating adverse action against the institution, including terminating or revoking the institution’s program participation agreement.
If you have any questions about this information, you may contact the School Participation Team (SPT) for your state. The telephone numbers for the SPTs can be found at www.eligcert.ed.gov.