1. Postsecondary Education Participants System Training Guide September 2013 Volume III (Visit our webpage @ www2.ed.gov/offices/OSFAP/PEPS)

2. 2 INDEX - Volume III Page Financial Statements: –Financial Statement4 –Surety25 –Correspondence Log27 –Case Team Ratio Analysis Worksheet31 –Tracking33 –Waiver36 –Change in Ownership38 Direct Loan Program: –Direct Loan Basic Information40 Program Review: –Program Review Information46 –Deficiencies62 –Reviewer Involvement64 –Appeal66

3. 3 INDEX - Volume III Page Management Improvement Service68 –MIS Staff Involvement75 –MIS Contact Log77 –MIS Delivery Method79 –MIS Issues87 Audit Resolution: –Tracking90 –Audit Report95 –Acceptability Review104 –Finding107 –Correspondence111 –Appeal113 –Missing Closeout Audit115

4. 4 Financial Statements – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Financial Statement”.

5. 5 The “Financial Statement Query” (pepsi105) screen will display. The screen lists all financial statements received by the Department since 1995/1996. Captured below are data fields “Fiscal Year End” to “Conclusion” and a brief definition of each of these data fields is provided on the next page. Furthermore, all the data elements housed on this rather lengthy screen are defined, on subsequent pages.

6. 6 “FINANCIAL STATEMENT QUERY SCREEN” Data Elements: Current Status – Indicates the current status for the most recent Financial Statement (FS). Fiscal Year End – School’s fiscal year end date. Sch Grp – Indicator if the FS is for a “School Group”. FY End Chg – Indicator if the FS is for a period ending different than 06/30/CCYY. Init – Indicator if the FS is for an initial (new) school to Title IV participation. CIO – Indicator if the FS is for a Change in Ownership. Due Date – Date the FS is due to EZ Audit. Received Date – Date the FS was received by the Department. Reminder Letter Sent Date – Date a letter sent reminding school to submit FS. Delinquent Letter Sent Date – Date of letter sent advising school it failed to submit its FS and/or that the Department has not received the school’s FS. Release Date – Date the FS was released after the first round of QC. Out Come – Status of FS after primary review (i.e. complete or incomplete). Flagged – Indicates some type of concern (i.e. audit score, late refund, etc.). Score – Score of FS from Primary Review (Range +3 to –3). Concl – Conclusion (final determination) after Primary Review.

7. 7 The ‘middle-screen’ data fields of the “Financial Statement Query” screen are viewed by using the “Horizontal Scroll” bar as we have done on other grid format screens. Captured below, data fields “Flagged Later” to Determination” make up this portion of the screen’s content. A brief definition of this group of data elements is provided on the following page.

8. 8 “FINANCIAL STATEMENT QUERY SCREEN” Data Elements – ( Continued ): Flagged Later – Financial statement was not originally flagged but the School Participation Management Team requested an override; and based on the override request the financial is now flagged. Admin Stay On/Off Dates – Date the audit, financial statement or recert application was placed on/taken off administrative stay. Admin Stay Reason – Reason for the administrative stay which is based on certain pre-established criteria. Determin. Date – Date the School Participation Team Financial Analysts completed their review/final determination. Determination – Code and type of Determination made by the School Participation Management Team Financial Analyst (i.e. without condition, letter of credit, denial, heightened cash monitoring 1, heightened cash monitoring 2 or reimbursement).

9. 9 The last portion or farthest right of the “Financial Statement Query” screen will display by scrolling as far right as possible. A brief definition for “Financial Analyst” and “Case Team” are provided on the next page. Upon completion of that material, select the “Primary Review” button located on the lower left of the screen. (Note the cursor is in the “06/30/2005” of the Fiscal Year End Date data field; refer to applicable discussion on page 14)

10. 10 “FINANCIAL STATEMENT QUERY SCREEN” Data Elements – ( Continued ): Financial Analyst – Name of the School Participation Management Team member responsible for the review and determination of financial statements associated with a school’s eligibility and certification process. Case Team – School Participation Team responsible for the financial statement.

11. 11 Page 1 of the “Primary Review” screen will display. Data is displayed on this screen once the “Document Receipt and Control Center” (DRCC) has released the financial statement (FS). Remember, the FS data on this screen is the result of which of the FS (i.e. for which fiscal year end) your cursor was on while in the “Financial Statements Query” screen. Select the “Next Page” icon to continue.

12. 12 Page 2 of the “Primary Review” screen will display with some results of the initial review of the financial statement by ED staff or contractor. Select the “Next Page” icon to continue reviewing data housed within the four (4) pages of the “Primary Review” screens.

13. 13 Page 3 of the “Primary Review” screen will display. It captures the financial statement’s data ranging from ‘Total Assets’ to ‘Total Expenses’. Select the “Next Page” icon to continue.

14. 14 Page 4 of the “Primary Review” screen will display. Select the “Incomplete Letter” button at the bottom of the page, left portion.

15. 15 A forms message displays with an alert stating that the financial statement is complete. Select the “OK” button to dismiss the message.

16. 16 Select the “Exit” icon to exit the “Primary Review” screen.

17. 17 The “Financial Statement Query” screen will redisplay. Select the “CM Worksheet” button located at the bottom of the screen.

18. 18 Page 1 of the “Case Team Ratio Analysis Worksheet” screen will display. As suggested by its title, these two (2) screens serve as a worksheet to the Financial Analyst (FA) of a School Participation Management Team. The FA reviews the financial statement and conducts an analysis of its data to determine or derive an ‘acceptability’ conclusion. Select the “Next Page” icon to view Page 2.

19. 19 Page 2 of the “Case Team Ration Analysis Worksheet” screen displays the summation of much of the financial statement data. Select the “Exit” icon to return back to “Financial Statement Query” screen.

20. 20 The “Financial Statement Query” screen will redisplay. Select the “Participants” button located at the bottom of the screen.

21. 21 The “Financial Statement Participant” screen will display. This screen is used to view all the schools within a group; of extreme value should one financial statement be submitted for the group. Select the “Exit” icon to leave this screen.

22. 22 The “Financial Statement Query” screen will redisplay. Select the “Waiver” button, or the fifth access button located at the bottom of the screen.

23. 23 Solely for the purpose of providing a visual display of the kind of information that is captured by the data fields of the “Financial Statement and Compliance Audit Waiver” screen, a new example school: ‘Prima Medical Institute – Mesa (OPE ID: 011570)’ is presented below. This school applied for and was granted (06/06/2006) a ‘financial statement and compliance audit’ waiver covering fiscal years 12/31/2004 – 12/31/2006. When your review is complete of this screen, exit this screen and return to the “Financial Statement Query” screen and ‘Arizona Automotive Institute’ data, on the next page.

24. 24 The “Financial Statement Query” screen will redisplay with ‘Arizona Automotive Institute’, ‘OPE ID: 010847’. The far right portion of the screen captures “Stay Reason’ (if applicable), ‘Determination’ descriptions, ‘FA’ names and ‘Case Team’ identifying information. Select the “Exit” icon to continue.

25. 25 Financial Statements Surety – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Surety”.

26. 26 The “Surety” screen will display the most current surety data for the school. To view all “Surety Requested” and “Surety Received” records for the school’s different “Fiscal/Award Year End” dates, use the “Next Record”/”Previous Record” icons. Select the “Exit” icon to continue.

27. 27 Financial Statements Correspondence Log – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Correspondence Log”.

28. 28 The “Correspondence Log” screen will display. This screen captures all incoming correspondence via ezAudit for Audits, Financial Statements and supporting documents pertaining to an “EAPP” submission. The screen is displayed in a grid format. Use the “Horizontal Scroll” bar located on the bottom of the screen to view the screen in its entirety.

29. 29 Continue to use the “Horizontal Scroll” bar located on the bottom of the screen to view more information.

30. 30 The farthest right portion of the “Correspondence Log” screen ends with the “Case Team” data field and the “Print Letter” button. Select the “Exit” icon to continue.

31. 31 Financial Statements Case Team Ratio Analysis Worksheet – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Case Team Ratio Analysis Worksheet”.

32. 32 Data associated with the “Case Team Ratio Analysis Worksheet” displays on two screens or has two (2) pages. They are the identical screens /pages of data viewed previously via the “CM Worksheet” button on the “Financial Statement Query” screen. Select the “Exit” icon to review the tracking of financial statements and compliance audits in PEPS.

33. 33 Financial Statements Tracking – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Tracking”.

34. 34 The “Financial Statement/Audit Tracking” (pepsd143) screen will display. This screen tracks all incoming financial statements and compliance audits. The screen is displayed in a grid format. Use the “Horizontal Scroll” bar located on the bottom of the screen to view more information.

35. 35 The last portion of the “Financial Statement/Audit Tracking” screen will display. The farthest right data fields of this screen are the “Pre ACN Receipt Date” field and the “Referral” button. Select the “Exit” icon to return to the PEPS main menu.

36. 36 Financial Statements Waiver – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Waiver”.

37. 37 The “Financial Statement and Compliance Audit Waiver” (pepsd192) screen will display. Note: This is the exact same screen previously accessed via the “Waiver” button on the “Financial Statement Query” screen. Select the “Exit” icon to return again to the PEPS main menu.

38. 38 Financial Statements, Change in Ownership – From the main menu bar select “School”, from the first drop down box select “Financial Statements”, from the second drop down box select “Case Teams” and from the third drop down box select “Change in Ownership”.

39. 39 The “Change in Ownership” (pepsd190) screen will display. This screen serves somewhat as a one-time ‘balance sheet’ for the FA/School Participation Management Team reviewing a school’s ‘eAPP’ request for ‘change of ownership’ approval. Select the “Exit” icon to continue.

40. 40 Direct Loan Program - From the main menu bar select “School”, from the first drop down box select “Direct Loan Program” and from the second drop down box select “Direct Loan Basic Information”.

41. 41 The “Direct Loan Basic Information” (pepds131) screen will display. The left side of this bi-sectional screen provides the FDSLP ID number, DUNS number, SEQ NBR, program eligibility status, deferred and withdrawal information, if applicable. Select the “Locations...” button.

42. 42 The “Location FDSLP ID Numbers” (Pepsd132) screen will display. Select the “Exit” icon.

43. 43 The “Direct Loan Basic Information” screen will redisplay. Select the “Origination Option...” button below the second section of this screen that captures ‘Direct Loan Participation’ data such as ‘Start Date and Reason’, ‘End Date and Reason’ and ‘Origination Option’ information in a free-form note space.

44. 44 The “Origination Option Information” (Pepsd133)screen will display with data such as ‘Option Definitions’, ‘Award Year’, ‘Option Start’, and ‘Option End’ date and ‘Reason’ data. Select the “Exit” icon.

45. 45 The “Direct Loan Basic Information” screen will redisplay. A “Note” button provides access to the “Direct Loan Notes” screen that stores all DLOPS/DL staff notes and comments. Like other buttons, if a “<“ is present to its right, this indicates that there is a written note/comment which is accessible via the button. Select the “Exit” icon to return to the PEPS main menu.

46. 46 Program Review - From the main menu bar select “School”, from the first drop down box select “Program Review” and from the second drop down box select “Program Review Information”.

47. 47 The “Program Review Information” (pepsd209) screen will display. The screen displays a list of all program reviews recorded for this ‘OPE-ID’. For this exercise, be sure that you select the “PRCN” (Program Review Control Number) 200321121225 and it is highlighted. Select the “OK” button.

48. 48 Page 1of 2 “Program Review Information” screens will display. This screen provides an overview of basic Program Review (PR) information: Review Type, Reason, Level, Scope, etc., and review and correspondence dates. Select the “Next Page” icon to continue.

49. 49 Page 2 of the “Program Review Information” screen will display. It captures ‘award year’ and ‘case team actions’ data, as well as ‘liability’ and ‘repayment’ data. Select the “Current Deficiencies” button to continue.

50. 50 The “Program Review Deficiencies” screen will display in a grid format. Within this portion of the screen is displayed: ‘deficiencies’- by code and name, ‘liability dollar amount(s)’, ‘formal fine action’, and ‘appeal’ status and ‘revised liability dollar amount(s)’ if applicable. Use the “Horizontal Scroll” bar located on the bottom of the screen to view more information to the right of the screen.

51. 51 The farthest right portion of the “Program Review - Deficiencies” screen will display the ‘Revised Reason’ and ‘Repayment Amount’ data fields and the “Repayment” button. Select the “Repayments” button.

52. 52 The “Program Review Repayments” (Pepsd215) screen will display in a grid format. This portion of the screen details specifics about the repayment such as the FSA Program (FDSLP or Federal Direct Student Loan Program, in this example) associated with the repayment, the method or source the repayment will be returned to (i.e. ED’s Finance Accounts Receivable Department) and the original liability amount (i.e. $5,241). Use the “Horizontal Scroll” to view more information.

53. 53 The last portion of the “Program Review – Repayments” screen will display. It captures the ‘revised liability amount’(s) (if applicable), the ‘actual repayment amount’, the ‘revised repayment amount’(s) (if applicable), and totals for each. Select the “Exit” icon.

54. 54 The “Program Review – Deficiencies” (Pepsd210) screen will redisplay. Select the “Exit” icon to leave this screen and return to Page 2 of the “Program Review Information” screen.

55. 55 Page 2 of the “Program Review Information” screen will redisplay. Select the “Appeals” button to display ‘Final Audit Determination’ (FAD) and ‘Final Program Review Determination’ (FPRD) data.

56. 56 The “FAD/FPRD Appeals” (PEPSD122) screen will display Talladega College’s data. However below, Ross University, School of Medicine’s (Ross)(022460) has been substituted as an example of a full cycle appeal. Documented below is Ross’ appeal in response to the FPRD issued on 12/14/1989. Ross’ appeal of program review (PRCN 19953021158) resulted in a settlement agreement which lowered the original appealed amount of $116,072 to a lesser, revised liability amount of $21,789, on 07/12/1999. Select the “Contact” button.

57. 57 The “Appeal Contact” pop-up box will display. The name of the person responsible for any and all communication requests regarding the Ross appeal, including contact address and telephone/fax number information, are housed in the pop-up box. Select the “OK” button to dismiss the “Appeal’s Contact” box.

58. 58 The “FAD/FPRD Appeals” screen will redisplay with Ross University’s FPRD appeal data. Select the “Hearing” button.

59. 59 The “AAA Hearings and Decisions” (PEPSD135) screen will display. The applicable data regarding ‘Hearing’ and “Action’ activities by other entities of the Department’s AAASG (Administrative Actions and Appeals Service Group staff will be housed here. In the case of Ross, a settlement agreement was reached and the hearing was dismissed, therefore it was only assigned an OHA (Office of Hearing and Appeals) judge and a docket number. Select the “Exit” icon to continue.

60. 60 The “FAD/FPRD Appeals” (PEPSD122) screen will redisplay. The “Stop Pay/Reimbursement” button is another access tool to any stop pay/reimbursement data (should a school be involved in such monitoring) as mentioned in Volume II of the training guides. Select the “Exit” icon.

61. 61 Returning to Page 2 of the “Program Review Information” screen with ‘Talladega College’ – ‘OPE ID: 001046’ as our example school, select the “Exit” icon to close out the program review screens and return to the PEPS main menu.

62. 62 From the main menu bar select “School”, from the first drop down box select “Program Review” and from the second drop down box select “Deficiencies”.

63. 63 The “Program Review Deficiencies” screen will display. This is the same screen that you viewed earlier under Page 2 of the “Program Review Information” screen. Select the “Exit” icon.

64. 64 From the main menu bar select “School”, from the first drop down box select “Program Review” and from the second drop down box select “Reviewer Involvement”.

65. 65 The “Program Review - Reviewer Involvement” (pepsd211) screen will display. This screen list the ED school oversight personnel (and occasionally, some of its ‘finacial partners’ personnel) that conducted or participated in the ED program review. Select the “Exit” icon.

66. 66 From the main menu bar select “School”, from the first drop down box select “Program Review” and from the second drop down box select “Appeal”.

67. 67 The “Appeal Screen” will re-display as the FAD/FPRD Appeals scrren. Note: this is the same screen that you viewed earlier under Page 2 of the “Program Review Information” screen. Select the “Exit” icon.

68. 68 From the main menu bar select “School”, from the first drop down box select “Management Improvement Services”, and from the second drop down box select “Management Improvement Services”.

69. 69 MANAGEMENT IMPROVEMENT SERVICES – The Management Improvement Services (MIS) module houses Federal Student Aid’s non- compliance oversight. It has changed it name officially in an agency reorganization and is now referred to as Case Management Improvement Services (CMIS). All technical support and assistance to institutions on issues ranging from general administration to closed school inquiries are entered into the CMIS module. All updates to CMIS are performed by School Participation Management Division, along with their adjuncts, Quality Assurance Team, Experimental Sites Team, Administrative Actions and Appeals Team, Direct Loan Client Account Managers (DL CAMS), and Default Prevention.

70. 70 The “Management Improvement Services” (PEPSD210) screen will display. A message indicates that there are no MIS records for the school selected. Select the “OK” button to continue.

71. 71 Select the “Enter Query/Show Last” icon so that you can query for another school.

72. 72 When the screen is cleared of ‘Arizona Automotive Institute’ data, enter “031021” in the ‘OPE ID’ field and the select the “Find” icon.

73. 73 The “Schools Matching Search Criteria” box will display. Select the “OK” button to continue.

74. 74 The “Management Improvement Service” window will display. There are schools where more than one (1) ‘management improvement service’ (MIS) has been rendered. Hence, you must make sure the ‘Management Improvement Service Number’ (MISN) that you wish to review is highlighted and then select the “OK” button to continue. In this example, ‘OPE ID 031021’ has only one (1) MISN.

75. 75 The “Management Improvement Service” screen will display the data for the MISN you requested. Similar to the ‘Program Review’ screen data, the MIS information screen data includes ‘reason’, ‘level of MIS’, ‘team type’ as well as ‘start’ and ‘end’ date data. There is also a free-form note/comment space for pertinent information related to the MIS. Select the “Staff Involvement” button.

76. 76 The “MIS Staff Involvement” screen will display. Similar to the “Program Review Involvement” screen, the names of ED personnel that conducted or participated in the management improvement service are listed here. Select the “Exit” icon.

77. 77 The “Management Improvement Service” (PEPSD218? screen will redisplay. Select the “Contact Log” button.

78. 78 The “MIS Contact” (PEPSD260) screen will display. Select the “Exit” icon to continue.

79. 79 The “Management Improvement Service” screen will redisplay. Select the “Delivery Method” button.

80. 80 The “MIS Delivery Method” screen will display. Use the horizontal scroll bar to scroll the screen over.

81. 81 The end of the “MIS Delivery Method” screen will display. Select the “Issues” button.

82. 82 The “MIS Issues” screen will display. Use the horizontal scroll bar to scroll the screen over.

83. 83 The end of the “MIS Issues” screen will display. Select the “Deficiency” button.

84. 84 The end of the “MIS Deficiencies” screen will display. Select the “Exit” icon to continue.

85. 85 The “MIS Issues” screen will display. Select the “Exit” icon to continue.

86. 86 The “MIS Delivery Method” (PEPSD261)screen will display. Select the “Exit” icon to continue.

87. 87 The “Management Improvement Service” screen will redisplay. Select the “Issues” button.

88. 88 The “MIS Issues” (PEPSD262) screen will display. This is the same screen viewed earlier under the “Delivery Method” button. Select the “Exit” icon to continue.

89. 89 The “Management Improvement Service” screen will redisplay. Select the “Exit” icon to continue.

90. 90 Audit Resolution – From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Tracking” (for policy questions pertaining to audits please contact Deborah Godden at 202-377-4269 or email deborah.godden@ed.gov).deborah.godden@ed.gov

91. 91 The “Audit Statement/Audit Tracking” (pepsd143) screen will display for this school in a grid format. This screen is the same as the one viewed earlier from the “Financial Statement” module review. Select the “Enter Query/Show Last” icon to select another school to view.

92. 92 Enter “008545” in the ‘OPE ID’ field within the ‘Header Block’ and select the “Find” icon.

93. 93 The “Schools Matching Search Criteria” box will display. Select the “OK” button to continue.

94. 94 The “Audit Statement/Audit Tracking” screen will display for this school in a grid format. This screen is the same as the one viewed earlier from the ‘Financial Statement’ module. Select the “Exit” icon to continue.

95. 95 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Audit Report”.

96. 96 The screen will display a list of all audit reviews associated with this ‘OPE-ID’. Be sure that ACN (Audit Control Number) ‘05-2002-36397’ is highlighted and select the “OK” button.

97. 97 Page 1 of the “Audit Report” screen will display. Select the “Programs” button.

98. 98 A “Programs” pop-up window will display. Select the “OK” button to continue.

99. 99 After the screen title you see the ‘number-of-screens’ designation (i.e. Page 1 of 3). Select the “Next Page” icon to access Page 2 of the “Audit Report” screen.

100. 100 Page 2 of the “Audit Report ” screen will display. Select the “Next Page” icon again.

101. 101 Page 3 of the “Audit Report” screen will display. Select the “Amend History” button.

102. 102 A system dialogue box posts the alert that there are no amended liability amounts found for this audit report; no amended liability history. Select the “OK” button.

103. 103 Page 3 of the “Audit Report” screen will redisplay. Select the “Exit” icon.

104. 104 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Acceptability Review”.

105. 105 A pop-up window displays a list of all audits found for this ‘OPE-ID’. Be sure that ACN ‘05-2002-36397’ is highlighted and select the “OK” button.

106. 106 The “Acceptability Review” (Pepsd144) screen will display. Select the “Exit” icon.

107. 107 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Finding”.

108. 108 The “Audit Finding ” screen displays. Place your cursor in the “Code” field for the Deficiency Code “2492”. Select its “Repay” button on the far right.

109. 109 The “Audit Finding Repayment” screen will display. Select the “Exit” icon.

110. 110 The “Audit Finding” screen will redisplay. Select the “Exit” icon to continue.

111. 111 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Correspondence”.

112. 112 The “Audit Correspondence” screen displays. Select the “Exit” icon.

113. 113 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Appeal”.

114. 114 Page 1 of the “FAD/FPRD Appeals” screen will display. Note, this is the exact same screen viewed earlier during the ‘Financial Statement’ module review. Select the “Exit” icon to continue.

115. 115 From the main menu bar select “School”, from the first drop down box select “Audit Resolution” and from the second drop down box select “Missing Closeout Audit”.

116. 116 The “Missing Closeout Audit” screen will display. Select the “Exit” icon to continue.