14. Title IV program responsibilities/financial aid audits [FR 4.7/CS 3.10.3]
Standard 14: The institution is in compliance with its program responsibilities under Title IV of the 1998 Higher Education Amendments. (Federal Requirement 4.7) The institution audits financial aid programs as required by federal and state regulations. (Comprehensive Standard 3.10.3)
Status: In Compliance
Berea College is in compliance with its program responsibilities under the Higher Education Opportunity Act of 2008. The U.S. Department of Education has authorized Berea College Student Financial Aid Service to participate in Title IV programs under a Program Participation Agreement valid through March 31, 2013.
Berea College audits financial aid programs, along with other federal grants, as required by federal and state regulations. Each year the college has an audit performed by independent auditors (currently Dean Dorton Ford, PSC) in accordance with Government Auditing Standards and as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. (Berea College Audited Financial Statements for the Years Ended June 30, 2010 and 2009, June 30, 2009 and 2008, June 30, 2008 and 2007, June 30, 2007 and 2006, and June 30, 2006 and 2005) Audit reports can also be found on the Finance Office website. The audit report is issued on the auditors’ consideration of the College’s internal control over financial reporting and on the auditors’ tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The audit report also includes an accompanying schedule of expenditures of federal awards and any findings or questioned costs. The most recently filed audit, 2010-2011 report had no findings required to be reported under OMB-133.
In addition to the annual external audit, College employees perform reconciliations of student account and student loan information contained in different departments of the College such as, Student Financial Aid Services, Academic Services, and Financial Affairs. There are also reconciliations with the U. S. Department of Education. Both the U.S. Department of Education and the state require a separation of duties for all offices involved in the awarding, disbursement and reconciliation of funds to insure program integrity.
Berea College meets all reporting requirements of the U.S. Department of Education. Federal Pell Grant activity is reported online through the Common Origination and Disbursement system. The Federal Perkins Loan Program is reported monthly through the National Student Loan Data System. The Fiscal Operations Report and Application to Participate (FISAP) is filed annually with the U. S. Department of Education.
Berea College adheres to all federal regulations as set forth under the Title IV Student Aid Programs regulations. Processing of student aid applications and of federal funds is carried out as mandated by these regulations. Student eligibility is verified according to federal and state verification regulations; the regulations are reviewed, and both manual and systematic verification procedures are adjusted each year.
Supporting Documents and Evidence
- Title IV Program Participation Agreement
- Audited Financial Statements for Years Ended
- Finance Office (Website) <http://www.berea.edu/vpf/finance/default.asp>
- Student Financial Aid Services (Website) <http://www.berea.edu/studentfinancialaid/>
- Fiscal Operations Report and Application to Participate (FISAP)