BeautyLink - Volume 6, Issue 3 - (Page 26)

AND THEN THERE'S COMPLIANCE It's Not Too Early to Begin Thinking About Your Audit when many of us breathe easier knowing we don't have to worry about that annoying audit until next year. When I received BeautyLink's request to write an article about preparing for a year-end audit, my first response was, "Can't we take it easy for a month or two before thinking about next year?" Perhaps this is your response as well. However, writing this article did get me thinking about the traditional thought process when it comes to audits. Many of us view an audit as the time when someone looks at our stuff to find mistakes, brings those mistakes to our attention and then tattles to the government about our mistakes. We view our audit as a test and we hope we have the right answers. In reality, an audit is a test of our process more than it is a test of our specific files. Skip the next paragraph if theoretical discussions put you to sleep or cause you to pull your hair out. Audit theory is all about assessing an entity's processes to determine what steps should be taken so that management can say everything is okay. The auditing tests are conducted to give us auditors the ability to apply the results to the whole entity. When conducting a beauty school audit, the auditor's focus is to develop a statement about your school's process and its ability to correctly administer Title IV. We achieve that insight by testing specific files and transactions. Therefore, the real question you have to ask yourself when preparing for an audit is, "How is my process?" Is your process a well-oiled machine gun spitting out consistent results again and again? Or, does your process more closely resemble my golf game, where consistency is never the word that aptly describes it? What can school owners do to achieve a more consistent and consequently stress-free audit process? JULY IS A MONTH "The best way to keep an auditor happy is to have consistent files, as this suggests a methodical approach to documentation. It also gives the appearance that you know what you are doing." 1 Review your process. In your last exit interview, BY JARED SANDERS or in subsequent discussions with your auditor, was there a discussion about your process? Are there checks and balances in that process? For example, at each critical juncture, are there at least two people who look at things to make sure everything is correct? Have you identified those critical points (award, disbursement, SAP, drop and graduation)? 2 Streamline your documentation. Most auditors will readily admit to clients that we prefer to have only the absolute required documentation in the audit file. It is natural to assume that if you put everything in the file, you are protected. However, everything in the file must be consistent and support the actions you took. An easy example is collecting household information on all students regardless of selection for verification. If that information is obtained and retained in the file, you are obligated to make sure it all supports the aid awarded and disbursed. 3 Do your own audit during the year. I know many of you are thinking you don't have time. However, it doesn't have to be a full audit. Your miniaudits can focus on a specific attribute or issue. If you had a finding on verification last year, then just Faculty Development and NACCAS Requirements Many AACS Schools are accredited by NACCAS. NACCAS has a continuing education requirement that states the following: "Within each year of employment, each regularly employed instructor (but not substitute instructors) meets the applicable state requirements for continuing education or obtains 12 hours of continuing education, whichever is greater. Continuing education completed in person or online, includes a minimum of 4 hours in teaching methodology." The AACS Online Training Center has 29 courses for ground faculty and 14 for online instructors that can help satisfy this requirement, particularly the minimum 4 hours in teaching methodology. Faculty development is the most popular training category for AACS members. To learn more, visit www.aacstraining.org/category/compliance. 26 | BE AU T Y L I NK | CEL *E*BR AT E | 2014 Learn More http://www.aacstraining.org/category/compliance

Table of Contents for the Digital Edition of BeautyLink - Volume 6, Issue 3

Message From the Aacs President & CEA Chair
The Workings of Washington
The Art of the Consult
A Student’s Perspective
Celebrating Our Graduates
Access and Affordability
And Then There’s Compliance
Are You Ready to Thrive?
Navigating the Acquisition Path
Manlink
Creating a Marketing Mixture
Multicultural Corner
Culture Trumps Strategy
Beauty Changes Lives
Engaged Learning
Superstar Graduate
20 Ways to Celebrate You
Battle of the Strands
Students Leaving the Beauty School “Nest''
Why Every Educator Needs to Be at CEA This Year
Step by Step
Voices From the Classroom
People & Places
Create a Recipe for the Future
New Products & Services
Associate Member Profiles: Furniture Manufacturers
New School Members
Upcoming 2014-15 Events
Index to Advertisers
Advertisers.com

BeautyLink - Volume 6, Issue 3