By: Luke Hoey
Preparation and communication are the keys to reducing stress and unpredictability in your title IV compliance audit. To help you prepare for your next audit, McClintock & Associates has compiled some key concepts to keep in consideration.
First, getting a head start on the audit process can be beneficial. Consider what you can provide to your auditor in advance of your school’s fiscal year end. This includes institutional eligibility items such as State licenses, Accreditation certificates or Clock-to-Credit Conversion charts. In addition, consumer information items such as your most recent Completion, Graduation and Transfer-Out Rates, Annual Security Report and Gainful Employment disclosures can all be provided prior to beginning the audit.
It is also important to track and document significant changes that occurred during the year. Were there changes to key personnel at your school? Did you add or remove any educational programs? If so, were they added or removed after your school’s last recertification and are therefore not listed on your ECAR? Did you open a new location or branch campus? The answers to these questions could be vital when completing your audit and it is important to document accordingly.
Ongoing regulatory changes will also have an impact on your audit. We encourage you to read through and discuss these changes as they are determined. McClintock & Associates is always keeping up-to-date with these changes and outlining their significance via our e-mail distribution lists. Most recently, we have placed emphasis on the Borrower Defense to Repayment, Gainful Employment, and Cash Management regulations. We encourage you to read through these correspondence and follow-up with any questions.
Lastly, your future administration of Title IV funds could be forecasted by projecting certain metrics. These include your 90/10 Revenue Percentages and Financial Responsibility Ratio/Composite Score. Take time to review these metrics and discuss with your auditor in advance of year end. We look forward to hearing from you!