Financial Partners - 2005

1. Financial Partners - 2005 Entering School and Lender Reviews by Guaranty AgenciesAudit and Default Information Training Guide/Manual Volume VI January 2006 Part I U.S. Department of Education – Federal Student Aid (VISIT OUR WEBPAGE @ www.ed.gov/offices/OSFAP/PEPS) (The information in this guide is fictitious and was created for training purposes.)

2. Table of Contents Volume VI, Part 1 Financial Partners Module WHAT’S NEW Recent Changes to the System 3 REVIEWS Review Query 4 Review Detail 19 Review Deficiency Query 28 Review Deficiency Detail 35 AUDITS Audit Query 39 Audit Detail 49 Lender Audit Tracking Query 50 Lender Audit Tracking Detail 56 Lender Servicer Audit Tracking 60 GA Servicer Audit Tracking 60 Exceptional Performer Audit Tracking 60 Audit Deficiency Query 61 Audit Deficiency Detail 67 ACTIONS Action Query 68 Action Detail 72 APPEALS Appeal Query 74 Appeal Detail 78 DEFAULT INFORMATION GA Default Rates 80 Lender Default Rates 86

3. What’s New • Servicer review records has a new feature that allows you to record those lenders that are reviewed at the servicer more easily. See Part 1, page 26 for further details. • Exceptional Performer Designation quarterly audits are being tracked and recorded in the Audit section. That section starts on Part 1, page 39. • Exceptional Performer Designation is now recorded on the entity’s detail screen. See Part 2, page 94 and 103 for further details. • New scope codes have been added to capture reviews done as part of the exceptional performer designation and the CRI initiative. See Appendix D for a list of scope codes. • Appendix D has field definitions for program review records and a list of points to remember.

4. REVIEWS Review Query: To view data on program reviews that have been conducted on Lenders, Servicers, and Schools (only Guarantor reviews of Schools), From the main menu bar choose “More/Financial Partners/Reviews/Review Query.”

5. The PEPS Tool Bar used within the Financial Partners module is similar to the Tool Bar used throughout PEPS.

6. This screen is used to get a list of reviews that have been conducted. You will be able to see all records created by all guarantors and the Department’s reviews of lenders. We will be viewing the dummy records that have been developed for the guarantor 611. Enter 611 in the GA column and select the “Magnifying Glass” from your Tool Bar. Note: It is NOT recommended to click on the “Magnifying Glass” without entering criteria to search from. Doing so would retrieve almost 20,000 records and cause the PEPS system to slow down significantly.

7. All records matching the selection criteria will be displayed. This first screen contains information on the year and quarter in which the review was conducted. The organization that performed the review, the entity being reviewed and scope related to the review. Notice that there is one review that is listed multiple times (Kingsley State Bank) because it had multiple scopes. Using the Horizontal Scroll Bar you can read the additional text that is located to the right of the screen. Shortcut buttons to view or update (if user has access) more detailed information on a record

8. The second screen of review data contains information on the entity’s ID, name, city, state and related date information. Continue to scroll to the right. Upcoming reviews can be input in the system. It is important that everyone input their scheduled reviews so that multiple organizations that plan to review the same entity can consider performing joint or CRI reviews to help eliminate redundancy. This is important to the success of the review process.

9. The third screen provides information on dates relating to the review, the reviewer that performed the review, the level of the violations, and what type of review was performed. Continue to scroll.

10. The forth screen provides information on who updated this record, and the date it was updated. To view the detail of the last review listed in this query, make sure the last record is highlighted and select the “Detail” shortcut button at the bottom of the screen.

11. This is the detail information of the selected review from the query screen. You can Create, Read, Update, and Delete (CRUD) information that relates to reviews conducted by your Guaranty Agency, as well as, read information on reviews conducted by other Guarantors and the Department. Shortcut buttons to view: deficiencies, the main info. of a group of lenders that are related; their total portfolio; the deficiency information related to this review; and to print a cover sheet for this record. Used when populating the lenders reviewed on a Servicer review. Please refer to page 26 for more information.

12. If you notice this lender has an Assoc Cd (short for Association Code). That means it is a part of a group of lender numbers that make up an organization. Many lenders use multiple lender IDs. Mergers and acquisitions among lenders are tracked in PEPS. Select the “Main” button.

13. This screen shows the main name and the main location for the associated group of lenders. If the lender does not have an Assoc Cd listed, this screen will be blank. Select the “Red Door” button to go back to the detail record and select the “Assoc Rollup” button.

14. This screen shows the portfolio for the entire group of lender numbers rolled up into quarters in the same year that the review was conducted. A message will display if the lender has no other associated lenders or does not have portfolio for the review year. More information is in Volume VI, Part 2 under Entity Maintenance/Lender Portfolio. Select the “Red Door” to go back to the detail record.

15. Select the “Cover Sheet” from the detail record and then choose “preview” to review the cover sheet (see below) or “print” and attach to the review report. Select the “Red X” to go back to the detail record.

16. Select the “Deficiencies” button from the detail record and it will take you to this screen. The deficiency screen provides information on assessed and paid liabilities and their status. You can CRUD information on reviews conducted by your agency and read information on all others. To view the amount assessed you would first click in the line you want to view and select the “Assessments” button. Note: There are alternate ways to access this screen by selecting “Deficiencies” in the “Review Query” screen or by choosing “More/Financial Partners/Reviews/Review Deficiency Detail.”

17. The Assessed Obligation screen shows how much liability was identified and assessed against the lender or school in the program review report. The effective date is usually the same as the date the report was issued. If the amount has not been determined at the time the report is issued, this screen will remain blank. Select the “OK” button to go back to the deficiency screen and then select the “Payments” button.

18. The Paid Obligations screen provides information on the type of organization making the payment, how the payment was made, type of obligation being paid, amount and effective date of payment. Select the “OK” button to exit and the red door icon on the next three screens to return to the main menu.

19. Review Detail: To create or update records it is easiest to go directly to the “Review Detail” by choosing “More/Financial Partners/Reviews/Review Detail.”

20. To create a new record press the “Open Book” then enter an OPE ID and tab or press enter. If the lender has reviews it will display a list to choose from or cancel to start a new record. If starting a new record, click in the Review Dt field and complete as many of the items within the squares as you can. Once finished, to enter another record simply press the “Open Book” again and follow the steps above. Note: See Appendix D for a list of field definitions for those fields within the squares.

21. Once completed, select the “Diskette” icon to save this record. The message at the bottom should read that the record has been saved. The Seq# will be populated once this record has been saved. To enter the assessed deficiencies associated with this review, select “Deficiencies”.

22. Click in the Defic column and enter a valid deficiency code. The default option of open status should remain open until that deficiency has been resolved and paid. Click into the Defic column on the second row and enter another valid deficiency code. To enter an assessed amount associated with one of the codes, make sure the cursor is on the correct line and click the “Assessment” button.

23. For a liability assessment that is due from the school, click on the Org Type LOV and choose School. Tab or click to Assessed Amt Type LOV and choose Liability. Tab or click to Assessed Amt and type an amount. Tab or click to Effective Date and enter a date. The date is normally the same as the Report Issue Date which is usually when the assessment is made. Click in the Assessed Amt column toadd additional rows. Click on “OK” to exit and save.

24. Add a new deficiency code and click the “Payments” button to add an amount that was received or verified that it was paid.

25. For a liability received from the school, change the org type to school and the Payment Type to liability. Complete the method, amount and date. If the liability is different than the default simply so back and change. Select the “OK” to exit and save.Select the “Red Door” icon in the next screen to return to the review record.

26. Entering Servicer Review Records: If entering a servicer review, once the review and deficiency information has been input and saved. You will then need to add those Lenders reviewed as part of the Servicer review. Click on the “Underlying Lenders” button.

27. Enter those lenders that were reviewed as part of the Servicer review. Once you have entered the lenders press the “Diskette” to save the record. Each will be assigned a PRCN which can be accessed individually and all information related to the servicer review will be automatically populated on the individual lender record.

28. Review Deficiency Query: To review deficiencies that have been identified in program reviews, choose “More/Financial Partners/Reviews/Review Deficiency Query.”

29. To get a list of deficiencies that have been identified by the 611 guarantor. Scroll over to the GA column (between the By and For column) and enter 611. Select the “Magnifying Glass” icon.

30. The query will retrieve records similar to these test records. Using the horizontal scroll bar you can see the additional information that is located to the right of the screen.

31. Query Review Deficiency Results - Second Screen

32. Query Review Deficiency Results - Third Screen. To download this data into an excel spreadsheet, select the “Folder Tabs” icon to extract the file.

33. The following window will be displayed. Enter a path and file name. In this case enter after the C:\ pepsdata and deficiencies.csv as the file name, to create an excel compatible file, and select “Create File”

34. A message should appear to inform you that the extract was downloaded into the path you specified. You can now open the file into excel or access. Click the “OK” on that message and then the “Red Door” to return to the main menu.

35. Review Deficiency Detail: To view or update deficiency information on specific records, (if the user has access) choose “More/Financial Partners/Reviews/Review Deficiency Detail.”

36. To update or view deficiency information on a specific record, press the “Open Book” and enter the lender ID at the top of the screen and tab. The most current will be displayed. Note: There are various ways to access the deficiency data. The Review Query screen, the Review Detail screen, and the Review Deficiency Query screen all have shortcut buttons that are accessible, if data is displayed.

37. To view a list of all the PRCNs, select the “Up/Down” arrow next to the PRCN information and you will get a list to choose from. If you select a PRCN that is not your agency’s, the system will not allow you to update that record. The 6th and 7th position of the PRCN identifies the Region Code. Every guarantor has a designated Region Code.

38. The deficiency information for the selected PRCN is displayed. You can toggle back and forth among PRCN for this entity by pressing the “Up/Down” arrow. Once your desired record is displayed, you may begin entering deficiency information. Select the “Red Door” icon to exit.

39. AUDITS Audit Query: To view information in a spreadsheet format on audits that have been received by the Department, choose “More/Financial Partners/Audits/ Audit Query”

40. This screen will provide information on audits that have been received by Financial Partners. Enter a year that you are interested in viewing and other specific criteria relevant to the results you desire. Select the “Magnifying Glass” icon.

41. You should have similar results from the query. Using the horizontal scroll bar, there is additional information located to the right of the screen.

42. Audit Query Results - Second Screen

43. Audit Query Results - Third Screen

44. Audit Query Results - Fourth Screen. Scroll back to the beginning.

45. This is the audit detail record. It provides information on the entity performing the audit, dates that are related to the audit, type and date of response, HQ and Regional referral information, deficiency and servicer information. As in the review records, you would select the “Defic” button to view the detailed information of the deficiencies associated with this audit. Note: There is an alternative way to access this screen by choosing “More/Financial Partners/Audits/Audit Detail”

46. This is the audit deficiency detail screen. No deficiencies were found for this audit. These screens are slightly different than the review deficiency screens. We have been working on upgrading the views and the audit screens have not been done. Note: There are alternative ways to access this screen by selecting “More/Financial Partners/Audits/Audit Deficiency Detail” or selecting “Defic” in the Audit Query results screen or selecting “Detail” in the Audit Deficiency Query results screen.

47. A cover sheet reflecting the information related to this audit can be printed by pressing the “Cvr Sheet” button. The servicer information that is associated with an audit can be viewed by selecting the “Servicer” button.

48. This is the screen when “Servicer” is selected. Multiple servicer names and numbers that are used by the lender and associated with this audit are recorded in this section.

49. Audit Detail: See page 45.

50. Audit Tracking Query: Those lenders required to submit an audit are tracked in the audit tracking section. To query those lenders in a spreadsheet format, choose “More/Financial Partners/Audits/Audit Tracking/Lender Audit Tracking Query”