The U.S. Department of Education, Office of Inspector General has published its new Title IV Audit Guide, Guide for Financial Statement Audits of Proprietary Schools and For Compliance Attestation Examination Engagements of Proprietary Schools and Third-Party Servicers Administering Title IV Programs (Guide). The Guide and the related transmittal letter are available on the OIG Non-Federal website.
This Guide supersedes the previous guide dated September 2016 and the related amendments to that guide and is effective for fiscal years beginning on or after January 1, 2023. Early implementation is allowed and encouraged.
Section 487(c) of the Higher Education Act of 1965, as amended (HEA), and the regulations under 34 CFR 668.23 require all schools participating in the Federal Student Financial Assistance Programs under Title IV of the HEA (Title IV programs) to have an annual financial and compliance audit performed by an independent auditor. Section 487(c) of the HEA and 34 CFR 668.23 also require third-party servicers to have an annual compliance audit of the third-party servicer’s administration of the Title IV programs.
The guidance and requirements in this Guide apply to the audits required of proprietary schools and third-party servicers that are engaged by a school to administer certain functions of the Title IV programs.
Failure to submit audits that are performed in accordance with this Guide, once effective, may result in your audits being rejected. If you are a proprietary school or third-party servicer, please ensure that your auditor is using this Guide for audits of fiscal years beginning on or after January 1, 2023.
Contact Information
Questions pertaining to this Guide may be directed to the Office of Inspector General’s Non‑Federal Audit Team via email to OIGNon-FederalAudit@ed.gov.