The objectives of our audit were to determine (1) whether FSA ensured completion of corrective actions in response to audit and program review findings related to satisfactory academic progress (SAP) and (2) what actions FSA has taken to assist schools with compliance with SAP requirements.
FSA did not always ensure schools completed corrective actions related to the SAP findings identified in compliance audits and program reviews. This occurred because FSA’s Program Compliance office did not always perform the required resolution activities or address all SAP-related findings in the final determination letters. FSA’s failure to resolve SAP-related findings could result in (1) schools with repeated SAP findings, (2) ineligible students receiving Title IV program funds, (3) noncompliant schools continuing to participate in Title IV programs, or (4) FSA not establishing liabilities payable from schools that disbursed Title IV program funds to students who did not meet SAP requirements.
We made four recommendations, including that FSA ensure that Program Compliance office staff are aware of the requirement to address all repeat findings in a final audit determination letter, and ensure that staff are aware of policies and procedures for requesting additional documentation when needed to determine students’ eligibility for Federal student aid and assessing liabilities in instances when (a) satisfactory academic progress violations result in Federal student aid disbursements to ineligible students and (b) a school closes before it completed a required review.
Oversight and Monitoring—Student Financial Assistance Programs
See other OIG reports on FSA.