502-9 FA Compliance and Audits

Title:	FA Compliance and Audit Requirements
Owner:	Office of Financial Aid
Last Updated/Revised:	05/01/2024

Policy: United States University must adhere to the guidelines and laws regarding Federal Student Aid (FSA) programs. To remain compliant and to ensure accuracy the University follows the guidelines as outlined below.

Apply and receive approval from the Department of Education (DOE) to remain eligible to participate in the different FSA programs.
- FSA programs include, but are not limited to: Direct Loans, Pell Grants, etc.
Retain legal authorization by the state to provide postsecondary education, including maintaining national accreditation; admit regular students, only individuals with a high school diploma or recognized equivalent; and any programmatic accreditation for specific programs offered at the University.
Maintain the program participation agreement (PPA) which authorizes the University to receive FSA funds. This agreement with the Secretary of Education is renewed periodically as required by the DOE.
Demonstrate administrative capability to provide the education it promises and properly manage the FSA programs.
- Systems are in place to identify and resolve conflicting information received by the University
- Report any suspected fraudulent or misconduct, including but not limited to: false information or misrepresentation.
Report enrollment data timely to the DOE via the National Student Loan Data System (NSLDS) and ensure accurate student statuses and FSA program information are reported.
Conduct annual audits through an independent auditor to review the University’s compliance to the laws and regulations of the FSA programs. The University also conducts a financial statement audit. Audits are also conducted by the Office of the Inspector General (OIG), who has the authority to audit any program or entity that relates to the FSA programs and operations, including universities that receive Title IV funds or FSA program funds.
Provide consumer information to both potential, current students, and the DOE.
- Additionally, graduation and completion rates are reported, and the University maintains records of crime reported to campus security or the local police agencies on an annual basis.
The University keeps comprehensive, accurate program and fiscal records regarding the use of Title IV funds. Records are maintained for the minimum 3-year requirement from the DOE and longer in cases where additional retention requirements are warranted.
Annually notify students of their rights under the Family Educational Rights and Privacy Act (FERPA).
- Provides procedures for students to exercise their rights to inspect and review education records,
- Maintain records in the student’s file, including listing to whom personally identifiable information was disclosed and the legitimate interests the party had in obtaining the information. (This includes but is not limited to, providing parents a student’s information, when the applicable authorization to share said information is on file).
- Additionally, students have the right to:
  - Request an amendment to their records,
  - Inspect and review and education records pertaining to the student, and
  - Consent to disclosure of personally identifiable information from education records, except when FERPA permits disclosure of information without consent.

Purpose: The purpose of this policy is to outline the requirements to maintain eligibility for continuous participation in the Federal Student Aid programs.

Scope: This policy applies to all responsible departments.

Documents and Forms: None