TO AVOID ED AUDITS,STUDENT AID OFFICERS MUST STAY ON THEIR TOES - Article

Sep 28, 2026

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Advice for student aid officers on avoiding U.S. Education Department (ED) audits centers on staying current with student aid regulations, ensuring institutional honesty and responsibility, and supporting proper documentation practices. Speakers discuss increased ED scrutiny tied to student aid accountability, provide guidance for engaging federal auditors, and recommend annual internal reviews plus an integrated student information system. If an audit is imminent, institutions should notify executives and legal counsel, coordinate carefully with auditors, and preserve rights to appeal.

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TO AVOID ED AUDITS,STUDENT AID OFFICERS MUST STAY ON THEIR TOES

Best ways to avoid audits

What to do if an audit is imminent

Appeals and accountability

# TO AVOID ED AUDITS,STUDENT AID OFFICERS MUST STAY ON THEIR TOES Convention-Report To avoid audits,the three said,institutions also should: ORLANDO,Fla.--When it comes to auditing an institution's student aid pro-gram,the experts agree,the Education Department does not mess around. "They don't just say you owe $1.5 million,"noted Michael Goldstein,attorneyfor the American Association of Community and Junior College(AACJC),which isconvening here this week."They tell you how to write out the check." Goldstein,along with Dallas Martin,executive director of the Nationa1 Associ-tion of Student Financial Aid Administrators,and Assistant Education Secre-tary C.Ronald Kimberling,discussed the best ways to avoid audits and to han-dle the audit procedure in their presentation before AACJC members. The reason for ED's increased attention on finan-cial responsibility is simple,according to Martin."There's never been a time when there has been moreconcern about student aid and the accountability of it,"he said,adding that the federal budget deficit and current administra-tion policy have contributed to that concern. Kimberling said ED auditors pay particular attention to new regulations."Ifit is a new part of the law,you can bet that in two or three years that iswhere the department will be concentrating its efforts,"he said. To stay up to date,the three advised that college and university aid officerspay attention to new student aid regulations as proposed in the Federal Regis-ter,and send comments on the regulations to ED。 "Make certain your institution is providing input"on the regulations,Martinemphasized,adding that institutions must stay on their toes."It is absolute-ly essential that you do all you can to prevent an audit,"he said."Make cer-tain your institution is being honest and responsible." ■ Keep student aid personnel current on all student aid regulations.Studentaid officers should attend workshops on new regulations,Martin said,and eachoffice should be allowed adequate resources and staff to do a proper job ■ Perform an annual internal review of all student aid practices,assuringthat the student aid office is keeping pace with fast-changing regulations. ■Maintain and improve links among the student aid,admissions and registrar's(more) 6 April 16,1986 offices.There should be a "totally integrated student information system,"Kimberling suggested. ■ Make certain the institution's private auditor understands student aid regu-lations and has up-to-date knowledge of the programs."I am somewhat appalledby the many people who do not have this,"Martin noted. Yet,sometimes an audit still may occur,according to Goldstein.If a studentaid office is informed of an impending audit it must: ■ Notify the college's chief executive officer that the auditors are on theirway.Goldstein said he has seen "far too many"instances in which the collegepresident did not know about an audit until it was completed. ■ Contact the college's attorney,making certain he or she understands thenature of the audit. ■ Work with ED auditors,but do not give unbridled access to records without awritten request in advance. It is still possible the audit wil1 turn up some student aid irregularities.Goldstein suggested the institution attempt to reach a mutual agreement with EDon the amount of its liability in the case。Finally,the panel said,institu-tions have the right to appeal an auditor's decision. "Our intention is not to be punitive,but to ensure that the funds are beingproperty delivered,"Kimberling emphasized.--Bil1 Reinhard # ATTENTION TO PROGRAM DETAILS COULD SPARE THE PAIN OF AUDITS CHICAGO--Slipups in record-keeping and rules compliance are the most commonpitfalls experlenced by colleges and universities receiving federal funds,saysan Education Department regional inspector general. Because institutions often don't pay close attention to payroll records,eli-gible participants and proper spending procedures,t

FAQs

Why is the Education Department increasing attention to student aid audits?

Speakers say ED focus on financial responsibility has grown, driven by heightened concern about student aid accountability and broader federal budget and policy factors.

What should student aid officers do to stay compliant and reduce audit risk?

They should monitor new student aid regulations, comment on proposed changes through the Federal Register process, and conduct an annual internal review of student aid practices.

If an audit is expected, what immediate steps should the institution take?

Notify the college’s chief executive officer, contact the institution’s attorney so the audit is understood, and work with ED auditors without granting unrestrained access to records without a written advance request.

Sep 28, 2026

Uploaded by Riley