Appendix A to Subpart B of Part 668 - Standards for Audit of Governmental Organizations, Programs, Activities, and Functions (GAO)
34:3.1.3.1.30.2.17.20.2 : Appendix A
Appendix A to Subpart B of Part 668 - Standards for Audit of
Governmental Organizations, Programs, Activities, and Functions
(GAO) Part III Chapter 3 - Independence
(a) The Third general standard for governmental auditing is: In
matters relating to the audit work, the audit organization and the
individual auditors shall maintain an independent attitude.
(b) This standard places upon the auditor and the audit
organization the responsibility for maintaining sufficient
independence so that their opinions, conclusions, judgments, and
recommendations will be impartial. If the auditor is not
sufficiently independent to produce unbiased opinions, conclusions,
and judgments, he should state in a prominent place in the audit
report his relationship with the organization or officials being
audited. 1
1 If the auditor is not fully independent because he or she is
an employee of the audited entity, it will be adequate disclosure
to so indicate. If the auditor is a practicing certified public
accountant, his or her conduct should be governed by the AICPA
“Statements on Auditing Procedure.”
(c) The auditor should consider not only whether his or her own
attitude and beliefs permit him or her to be independent but also
whether there is anything about his or her situation which would
lead others to question his or her independence. Both situations
deserve consideration since it is important not only that the
auditor be, in fact, independent and impartial but also that other
persons will consider him or her so.
(d) There are three general classes of impairments that the
auditor needs to consider; these are personal, external, and
organizational impairments. If one or more of these are of such
significance as to affect the auditor's ability to perform his or
her work and report its results impartially, he or she should
decline to perform the audit or indicate in the report that he or
she was not fully independent.
Personal Impairments
There are some circumstances in which an auditor cannot be
impartial because of his or her views or his or her personal
situation. These circumstances might include:
1. Relationships of an official, professional, and/or personal
nature that might cause the auditor to limit the extent or
character of the inquiry, to limit disclosure, or to weaken his or
her findings in any way.
2. Preconceived ideas about the objectives or quality of a
particular operation or personal likes or dislikes of individuals,
groups, or objectives of a particular program.
3. Previous involvement in a decisionmaking or management
capacity in the operations of the governmental entity or program
being audited.
4. Biases and prejudices, including those induced by political
or social convictions, which result from employment in or loyalty
to a particular group, entity, or level of government.
5. Actual or potential restrictive influence when the auditor
performs preaudit work and subsequently performs a post audit.
6. Financial interest, direct or indirect, in an organization or
facility which is benefiting from the audited programs.
External Impairments
External factors can restrict the audit or impinge on the
auditor's ability to form independent and objective opinions and
conclusions. For example, under the following conditions either the
audit itself could be adversely affected or the auditor would not
have complete freedom to make an independent judgment. 2
2 Some of these situations may constitute justifiable
limitations on the scope of the work. In such cases the limitation
should be identified in the auditor's report.
1. Interference or other influence that improperly or
imprudently eliminates, restricts, or modifies the scope or
character of the audit.
2. Interference with the selection or application of audit
procedures of the selection of activities to be examined.
3. Denial of access to such sources of information as books,
records, and supporting documents or denial or opportunity to
obtain explanations by officials and employees of the governmental
organization, program, or activity under audit.
4. Interference in the assignment of personnel to the audit
task.
5. Retaliatory restrictions placed on funds or other resources
dedicated to the audit operation.
6. Activity to overrule or significantly influence the auditors
judgment as to the appropriate content of the audit report.
7. Influences that place the auditor's continued employment in
jeopardy for reasons other than competency or the need for audit
services.
8. Unreasonable restriction on the time allowed to competently
complete an audit assignment.
Organizational Impairments
(a) The auditor's independence can be affected by his or her
place within the organizational structure of governments. Auditors
employed by Federal, State, or local government units may be
subject to policy direction from superiors who are involved either
directly or indirectly in the government management process. To
achieve maximum independence such auditors and the audit
organization itself not only should report to the highest
practicable echelon within their government but should be
organizationally located outside the line-management function of
the entity under audit.
(b) These auditors should also be sufficiently removed from
political pressures to ensure that they can conduct their auditing
objectively and can report their conclusions completely without
fear of censure. Whenever feasible they should be under a system
which will place decisions on compensation, training, job tenure,
and advancement on a merit basis.
(c) When independent public accountants or other independent
professionals are engaged to perform work that includes inquiries
into compliance with applicable laws and regulations, efficiency
and economy of operations, or achievement of program results, they
should be engaged by someone other than the officials responsible
for the direction of the effort being audited. This practice
removes the pressure that may result if the auditor must criticize
the performance of those by whom he or she was engaged. To remove
this obstacle to independence, governments should arrange to have
auditors engaged by officials not directly involved in operations
to be audited.
[51 FR 41921, Nov. 19, 1986. Redesignated at 65 FR 65650, Nov. 1,
2000]
Appendix A to Subpart D of Part 668 - Crime Definitions in Accordance With the Federal Bureau of Investigation's Uniform Crime Reporting Program
34:3.1.3.1.30.4.17.11.5 : Appendix A
Appendix A to Subpart D of Part 668 - Crime Definitions in
Accordance With the Federal Bureau of Investigation's Uniform Crime
Reporting Program
The following definitions are to be used for reporting the
crimes listed in § 668.46, in accordance with the Federal Bureau of
Investigation's Uniform Crime Reporting (UCR) Program. The
definitions for murder, rape, robbery, aggravated assault,
burglary, motor vehicle theft, weapons: carrying, possessing, etc.,
law violations, drug abuse violations, and liquor law
violations are from the “Summary Reporting System (SRS) User
Manual” from the FBI's UCR Program. The definitions of fondling,
incest, and statutory rape are excerpted from the “National
Incident-Based Reporting System (NIBRS) User Manual” from the FBI's
UCR Program. The definitions of larceny-theft (except motor
vehicle theft), simple assault, intimidation, and
destruction/damage/vandalism of property are from the “Hate
Crime Data Collection Guidelines and Training Manual” from the
FBI's UCR Program.
Crime Definitions From the Summary Reporting System (SRS) User
Manual From the FBI's UCR Program Arson
Any willful or malicious burning or attempt to burn, with or
without intent to defraud, a dwelling house, public building, motor
vehicle or aircraft, personal property of another, etc.
Criminal Homicide - Manslaughter by Negligence
The killing of another person through gross negligence.
Criminal Homicide - Murder and Nonnegligent Manslaughter
The willful (nonnegligent) killing of one human being by
another.
Rape
The penetration, no matter how slight, of the vagina or anus
with any body part or object, or oral penetration by a sex organ of
another person, without the consent of the victim.
Robbery
The taking or attempting to take anything of value from the
care, custody, or control of a person or persons by force or threat
of force or violence and/or by putting the victim in fear.
Aggravated Assault
An unlawful attack by one person upon another for the purpose of
inflicting severe or aggravated bodily injury. This type of assault
usually is accompanied by the use of a weapon or by means likely to
produce death or great bodily harm. (It is not necessary that
injury result from an aggravated assault when a gun, knife, or
other weapon is used which could and probably would result in
serious personal injury if the crime were successfully
completed.)
Burglary
The unlawful entry of a structure to commit a felony or a theft.
For reporting purposes this definition includes: unlawful entry
with intent to commit a larceny or felony; breaking and entering
with intent to commit a larceny; housebreaking; safecracking; and
all attempts to commit any of the aforementioned.
Motor Vehicle Theft
The theft or attempted theft of a motor vehicle. (Classify as
motor vehicle theft all cases where automobiles are taken by
persons not having lawful access even though the vehicles are later
abandoned - including joyriding.)
Weapons: Carrying, Possessing, Etc.
The violation of laws or ordinances prohibiting the manufacture,
sale, purchase, transportation, possession, concealment, or use of
firearms, cutting instruments, explosives, incendiary devices, or
other deadly weapons.
Drug Abuse Violations
The violation of laws prohibiting the production, distribution,
and/or use of certain controlled substances and the equipment or
devices utilized in their preparation and/or use. The unlawful
cultivation, manufacture, distribution, sale, purchase, use,
possession, transportation, or importation of any controlled drug
or narcotic substance. Arrests for violations of State and local
laws, specifically those relating to the unlawful possession, sale,
use, growing, manufacturing, and making of narcotic drugs.
Liquor Law Violations
The violation of State or local laws or ordinances prohibiting
the manufacture, sale, purchase, transportation, possession, or use
of alcoholic beverages, not including driving under the influence
and drunkenness.
Crime Definitions From the National Incident-Based Reporting System
(NIBRS) User Manual from the FBI's UCR Program Sex Offenses
Any sexual act directed against another person, without the
consent of the victim, including instances where the victim is
incapable of giving consent.
A. Fondling - The touching of the private body parts of
another person for the purpose of sexual gratification, without the
consent of the victim, including instances where the victim is
incapable of giving consent because of his/her age or because of
his/her temporary or permanent mental incapacity.
B. Incest - Sexual intercourse between persons who are
related to each other within the degrees wherein marriage is
prohibited by law.
C. Statutory Rape - Sexual intercourse with a person who
is under the statutory age of consent.
Crime Definitions From the Hate Crime Data Collection Guidelines
and Training Manual From the FBI's UCR Program Larceny-Theft
(Except Motor Vehicle Theft)
The unlawful taking, carrying, leading, or riding away of
property from the possession or constructive possession of another.
Attempted larcenies are included. Embezzlement, confidence games,
forgery, worthless checks, etc., are excluded.
Simple Assault
An unlawful physical attack by one person upon another where
neither the offender displays a weapon, nor the victim suffers
obvious severe or aggravated bodily injury involving apparent
broken bones, loss of teeth, possible internal injury, severe
laceration, or loss of consciousness.
Intimidation
To unlawfully place another person in reasonable fear of bodily
harm through the use of threatening words and/or other conduct, but
without displaying a weapon or subjecting the victim to actual
physical attack.
Destruction/Damage/Vandalism of Property
To willfully or maliciously destroy, damage, deface, or
otherwise injure real or personal property without the consent of
the owner or the person having custody or control of it.
[79 FR 62789, Oct. 20, 2014]
Appendix A to Subpart N of Part 668 - Sample Default Prevention Plan
34:3.1.3.1.30.14.17.19.9 : Appendix A
Appendix A to Subpart N of Part 668 - Sample Default Prevention
Plan
This appendix is provided as a sample plan for those
institutions developing a default prevention plan in accordance
with § 668.217(a). It describes some measures you may find helpful
in reducing the number of students that default on Federally funded
loans. These are not the only measures you could implement when
developing a default prevention plan.
I. Core Default Reduction Strategies
1. Establish your default prevention team by engaging your chief
executive officer and relevant senior executive officials and
enlisting the support of representatives from offices other than
the financial aid office. Consider including individuals and
organizations independent of your institution that have experience
in preventing title IV loan defaults.
2. Consider your history, resources, dollars in default, and
targets for default reduction to determine which activities will
result in the most benefit to you and your students.
3. Define evaluation methods and establish a data collection
system for measuring and verifying relevant default prevention
statistics, including a statistical analysis of the borrowers who
default on their loans.
4. Identify and allocate the personnel, administrative, and
financial resources appropriate to implement the default prevention
plan.
5. Establish annual targets for reductions in your rate.
6. Establish a process to ensure the accuracy of your rate.
II. Additional Default Reduction Strategies
1. Enhance the borrower's understanding of his or her loan
repayment responsibilities through counseling and debt management
activities.
2. Enhance the enrollment retention and academic persistence of
borrowers through counseling and academic assistance.
3. Maintain contact with the borrower after he or she leaves
your institution by using activities such as skip tracing to locate
the borrower.
4. Track the borrower's delinquency status by obtaining reports
from data managers and FFEL Program lenders.
5. Enhance student loan repayments through counseling the
borrower on loan repayment options and facilitating contact between
the borrower and the data manager or FFEL Program lender.
6. Assist a borrower who is experiencing difficulty in finding
employment through career counseling, job placement assistance, and
facilitating unemployment deferments.
7. Identify and implement alternative financial aid award
policies and develop alternative financial resources that will
reduce the need for student borrowing in the first 2 years of
academic study.
III. Statistics for Measuring Progress
1. The number of students enrolled at your institution during
each fiscal year.
2. The average amount borrowed by a student each fiscal
year.
3. The number of borrowers scheduled to enter repayment each
fiscal year.
4. The number of enrolled borrowers who received default
prevention counseling services each fiscal year.
5. The average number of contacts that you or your agent had
with a borrower who was in deferment or forbearance or in repayment
status during each fiscal year.
6. The number of borrowers at least 60 days delinquent each
fiscal year.
7. The number of borrowers who defaulted in each fiscal
year.
8. The type, frequency, and results of activities performed in
accordance with the default prevention plan.
[84 FR 49914,
Sept. 23, 2019]