Preparing for a Compliance Review of the State Scholarship and Grant Programs
First in a series of three articles to help you better understand the State Scholarship and Grant Program Compliance Review process.

An institution’s preparation for an upcoming Compliance Review of the State Scholarship and Grant (S&G) Programs is important and can ensure that your institution’s review is organized and that all participants involved are aware of what is expected during the review process.  After an institution has been notified and a date has been scheduled, the institution’s president will be sent an Engagement Letter (see Attachment A) confirming the Compliance Review date.  The institutional officers from the Admissions, Business, Financial Aid, and Registrar’s Office will begin receiving a series of emails from the Compliance Team.  The first email will contain a copy of the Engagement Letter sent to the institution’s president, an Administrative Questionnaire (see Attachment B), a Memorandum (see Attachment C) to the Institutional Officers requesting information concerning the Compliance Review, and an S&G Program Compliance Review Checklist (see Attachment D) for preparation for the scheduled review. 

The Georgia Student Finance Commission (GSFC) Compliance Team will send an Engagement Letter to the institution’s president sixty (60) days prior to the scheduled Compliance Review.  The Engagement Letter is the formal notification to the institution’s president of the confirmed scheduled date for the upcoming Compliance Review.  The letter outlines the scope of the Compliance Review and specifies the institutional offices that will be involved in the process.   The Engagement Letter also details the purpose of the Compliance Review and the expectations GSFC has of each institution, as well as what the institution should expect of the GSFC Compliance Team.   

The Memorandum to the Institutional Officers will reiterate the Compliance Review date, the time and dates the GSFC Compliance Team will be on campus, and a list of the institutional files that should be made available for the onsite review.  It also covers the scope of the Compliance Review, the need for view only access to the institution’s electronic student database (i.e. Banner, Powerfaids, Datatel, etc.) if applicable, and a request for information from the institution that includes: a copy of the institution’s most recent updated policy and procedures manual that pertains to the administration of the State Scholarship Grant Programs; a copy of the institution’s catalog for the Compliance Review year in question; a user guide to maneuver through the institution’s electronic student database; and a S&G Programs Compliance Review Administrative Questionnaire.  The institution’s completion and submission of the Administrative Questionnaire will assist the GSFC Compliance Team in understanding the institutions calendar, fee schedule, withdrawal dates, etc.  All requested material should be submitted to the Compliance Team no later than 15 days from the receipt of the Memorandum to the Institutional Officers. 

The Compliance Review Checklist is an outline that provides guidance to an institution to prepare for an upcoming Compliance Review of the State Scholarship and Grant Programs.  It may be helpful for the institution to form an S&G Program Compliance Review committee or task group consisting of participants from the Admissions, Business, Financial Aid, and Registrar’s Office to ensure that all the departments are aware of their role in the Compliance Review process.  The Compliance Review Checklist can provide guidance to the committee or task group.  The institution should designate a contact person that will act as a liaison between the institution and the GSFC Compliance Team.  In addition, each department should designate a representative to be present at the entrance and exit interviews.   The S&G Program Compliance Review committee or task group should provide on-campus parking instructions and arrange for a location and directions to the entrance and exit interview site.  The institution should also arrange for adequate work space for the reviewers that must be safely secured during the onsite Compliance Review and procure the assistance of the institution’s IT Department for view only access to the institution’s student database.

Approximately 10 -12 days prior to the Compliance Review, the institutional officers will receive the S&G Program Compliance Review sample lists via email.  It is at this time that each department should begin to make sure that all files from the Admissions, Business, Financial Aid, and Registrar’s Office are available prior to the arrival of the reviewers.  Each department should provide files that include the following:

• Admissions Office – Students’ Admission file that includes applications and copies of academic transcripts from previous institutions.
• Registrar’s Office – Unofficial copy of each student’s current institution’s academic transcript including a copy of the back of transcript showing the institution’s transcript key.
• Financial Aid Office – Students’ State and/or Federal Financial Aid Application.
• Business Office – Students’ disbursements / transactions.

All the files should be organized in alphabetical order by S&G program so that all the files for each student are together.  The space made available for the review should accommodate two reviewers and ensure the files can be properly secured at the end of each day.  The room should have access to computers for access to the institution’s student database (view only access), connection for the reviewer’s laptops, and access to a copy machine and a telephone.

The entrance interview will take place at the beginning of the on-site review, at which time the lead reviewer will introduce the review team, give an overview of the process and, if applicable, explain additional needs.

After the on-site review process is completed, an exit interview will be conducted.  At this time, information will be discussed concerning the Compliance Review, along with instructions pertaining to the documentation needed to satisfy the various findings and the submission of reports from the GSFC Compliance Team and responses from the institution.  The institution will be given the opportunity to ask questions during both the entrance and the exit interviews. 

The GSFC Compliance Team strives to make the Compliance Review process as comprehensible as possible and realizes that a Compliance Review can generate many questions.  A State Scholarship and Grant Program Compliance Review is a time consuming and lengthy process.  The GSFC Compliance Team is dedicated to our mission to work with the Georgia institutions in the proper administration of the State Scholarship and Grant Programs so that we can all be good stewards of State funds.  The GSFC Compliance Team encourages all institutions to contact us at ComplianceTeam@gsfc.org any time prior to, during, or after the review for assistance in answering Compliance related questions or providing clarification about the Compliance Review process.  You may also contact Richard Hawkshead, Vice President of Internal Audit & Compliance, at 770-724-9012 or Richard@gsfc.org, should you have any questions or comments.

Read Part II of this series here.