Financial Aid Data Analysisand Continuous Auditing

Tracey Sadler, CIA, CGAP

Texas A&M University System

Assist the Board of Regents, Chancellor, and Chief Executive Officers by providing independent, objective assurance and consulting services designed to add value and improve the A&M System's operations. The Department brings a systematic, disciplined approach to evaluate and improve the effectiveness of the A&M System's risk management, control, and governance processes.

System Internal Audit Mission

GTAG 3 defines continuous auditing as "...a method used to perform control and risk assessments automatically on a more frequent basis.... Continuous auditing is any method used to perform audit related activities on a more continuous or continual basis.

Benefits of continuous auditing include the review of 100% of auditable transactions/ data versus a sampling, the identification of errors or other issues through frequent monitoring and review, and the facilitation of trend analysis to identify problems and/ or other concerns.

What is Continuous Auditing?

Continuous Auditing◦ Repetitive, on-going intervals◦ Not based on audit project timeline◦ In depth automated testing

Data Analytics to Continuous Auditing

Data Analytics:◦ 100% transactional

coverage◦ Created on demand, reuse is

considered

Analyze risk

Identify systemic problems

Identify individual over awards

Identify areas to increase effectiveness

Why review 100% ?

Are we

missing

something?

DATA ANALYSISCONTINUOUS AUDITING

SCRIPTING EXPERT

Characteristics of Scripts

Scripts had to be used at every university, regardless of the source system

Intent to reuse annually or even monthly

Easily updated for ever changing SFA rules

Scripts had to be easily read by other auditors to use in the future

Standardized naming convention and a record of the results.

“rpt” to denote final test report result

double digit numbering to keep the rpt in natural order – General Eligibility, Pell, etc.

General Eligibility - 7 areas

Pell compliance – EFC; maximum and minimum awards; prior degrees

SEOG Compliance –Pell; maximum and minimum awards

Disbursement timing compliance – disbursement dates

Disbursement limits compliance – annual and lifetime maximum Stafford loans

Data Accuracy – University data must match data from the federal systems

Texas Grants Compliance –Texas Grants is the second largest aid program in the state.

Notification Compliance – Date student was notified of funds availability

ERRORS?

Did no results prove compliance?

Rate of errors reasonable?

Was data in the field correct?

What does a high error rate mean?

ARE

THESE

VALID?

University set parameters for SAP

This person was 40 years old.

WHAT’S A PLAUSIBLE

CAUSE?

Banner can run checks for missing data or data that doesn’t match.

Other risk areas?

Systemic Errors?

Summary Highlights of Results - 2012

Pell Grants to students with prior bachelor degrees: 18

SEOG awarded without Pell: 10

Stafford over awards: 183

Data discrepancies: 2,755

Risks identified – Notification of loan disbursementsMisinterpreted SAP progress policyData entry validity checks from related offices –

Registrar/ Admissions

Tracey Sadler, CIA, CGAP Senior Internal AuditorTexas A&M University System979.458.7130TSadler@tamus.edu 

www.tamus.edu

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