Standard Number 3.10.3: The institution audits financial aid programs as required by federal and state regulations.

Full Compliance

The State of Georgia created the University System of Georgia to function as a quasi-independent entity with responsibility for overseeing the state’s 34 institutions of higher education, one of which is Georgia Southern University. Policies and procedures for control of financial and physical resources, including financial aid programs, are promulgated at every level. Under federal regulations, public and nonprofit institutions are audited according to the Single Audit Act. The Single Audit Act requirements were implemented through the Office of Management and Budget (see OMB Circular A-133 Audits of States, Local Governments, and Non Profit Organizations).

The Georgia Department of Audit and Accounts performs an annual audit at each institution of the University System of Georgia and at the Office of the Board of Regents. The audit is conducted in accordance with generally accepted governmental auditing standards (see previous response provided to Standard 3.10.2 for details). These annual audits include tests of compliance with applicable federal laws and regulations and review of internal controls used in administering federal financial assistance programs. Each year a copy of the audit is submitted to the U.S. Department of Education, which sends a letter to the President of Georgia Southern University acknowledging receipt of the audit and describing corrective actions that may be required (see letters for recent years).

The Department of Internal Audit at Georgia Southern University also audits financial aid programs from time to time to determine compliance. The most recent internal audit was for FY 2002, covering Student Financial Aid and Regents Scholarships.