Audits

The Background

The program review process is done by the Student Finance Board through a random selection process, through informant calls and discrepancies, as well as through the cross-checking of databases. Students who receive large amounts of high-need, government-awarded bursaries and subsidies (for example, day care or subsidies for students with disabilities) are more likely to be reviewed.

The Student Finance Board can access the databases of such organizations as Human Resources & Employment, Subsidized Housing, Motor Vehicle Registries, Canada Customs & Revenue and even the University. Non-declared marital status, incorrect residency, non-declared assets, non-declared income and tax information discrepancies commonly trigger reviews.

Who can be reviewed?

ANY STUDENT FUNDING APPLICATION RECEIVED BY THE STUDENT FINANCE BOARD IS SUBJECT TO REVIEW.

The review occurs after the funding has been approved, especially if discrepancies occur between the information on the loan application and the information provided by government agencies. Students can be reviewed and reassessed more than once, and the review may cover more than one academic year. Students are also subject to more than one audit at a time.

Procedure

1. The student will receive a letter from the Student Finance Board informing him/her of the Program Review and Compliance, and the board's request for the necessary documents from the student, which MUST be supplied . The student has 30 days in which to respond to this letter.

2. If there is no response, a second letter is sent. If there continues to be no response, any remaining loan funds are frozen. The freeze will not be lifted until the student responds, and this freeze continues through the review process. Finally, a letter of non-compliance is sent out.

3. A review is done after the student responds, using the documentation that the student supplies.

4. If the student is cleared, a letter goes out from the Student Finance Board informs the student of their clearance. Most students usually clear the audit, and a letter is sent to the student as a thanks for his/her co-operation and to advise him/her that the audit has resulted in no change or that the award has been reassessed.

5. If the student does not clear the review, funds are either canceled or reduced.

6. If the student is reassessed through the program review as having loan over-awards (which means the Student Finance Board has determined that the student has been given too much funding), the student will likely be told that if he/she reapplies for assistance within 6 months of the current End of Study date, the over-award amount will be used to reduce any further funding.

7. If the student does not return to full-time study within 6 months of the End of Study date, then a lump sum payment will be requested. Grant over-awards are more likely to be demanded right away, as opposed to loan funds.

8. If the student cannot make the lump sum payment, the account is turned over to the Crown Debt Collections agency and it begins to accrue interest. Future income tax refunds and any other government pay-outs can be garnished by the collections agency.

9. If the review outcome is serious and the student has been found to have deliberately cheated the student loan system the student may be denied further loan funding or even charged with criminal fraud.

If you are a student who has received a Program Review and Compliance letter, you can contact:

Program Review and Compliance Department

P.O. Box 28000
Station Main
Edmonton, AB
T5J 4R4
Phone: (780) 427-5560
Fax: (780) 422-0091

Appealing an Audit

Students may appeal review results within 90 days of the Audit Department's decision. The student can complete a Request for Review form or write a letter with supporting documentation to the Program Review and Compliance department outlining any circumstances or expenses he/she feels are relevant to the case. Supporting documentation and receipts must be provided in order to have these costs considered. Appeals are handled directly by Program Review and Compliance staff. If an appeal cannot be resolved to the student’s satisfaction, the student can have the appeal forwarded to the Public Appeals Committee.

What are Student's Responsibilities?

While they are in school, students are responsible for:

1. Keeping all financial records so they can verify costs and expenses if selected for a program review. Essential documents include:
2. rent receipts and leases
3. child care receipts
4. bank and employments records for students and their spouses

5. medical documentation

6. Advising the Student Finance Board of any changes in their personal circumstances, such as:

7. change in financial estimates (ex. summer, part-time or spousal earnings)
8. change in monthly expenses (ex. rent, utilities, child care)
9. change in declared sources of income, including non-taxable sources of income not previously declared (eg. gifts, inheritances, lottery)
10. change in academic status (ex. full-time to part-time)
11. change in marital status
12. change of name
13. change of address and/or phone number