PHEAA's Audit Review Committee Releases Expense Audit Results

Audit shows 99.5% compliance with new, stricter spending policies

Harrisburg, PA (January 24, 2008) - The Audit Review Committee of the PHEAA Board of Directors released today results of a comprehensive expense audit measuring PHEAA’s compliance with newly revised travel and business expense policies.

2,900 transactions totaling $4.87 million, which occurred from March 23, 2007 through October 31, 2007, were thoroughly reviewed. Of those transactions, less than 1/2 of one-percent of the total dollar amount reviewed were determined to be out-of-compliance.

In mid-November, 2007, PHEAA Board Chairman William Adolph, Jr. and Vice-Chairman Sean Logan requested that the Audit Review Committee oversee a detailed expense audit to determine that Agency spending was in compliance with a new Travel Expense Policy dated March 23, 2007, new Travel Expense Procedures dated April 18, 2007 and PHEAA’s Education Lending Code of Ethics dated April 20, 2007.

“Since we revised PHEAA’s expense policies nearly one year ago, we’ve consistently communicated our mandate for reform and openness while emphasizing the need to aggressively cut costs throughout the Agency,” said Representative William Adolph, Jr., Chairman of the PHEAA Board. “We are encouraged to see that this audit produced no significant findings.”

The Board has been working closely with management to ensure that PHEAA’s expenses, especially those related to travel and business development, are incurred only when absolutely reasonable in the current business climate.

Senator Vincent J. Hughes, Chairman of the Audit Review Committee noted that the audit also produced several recommendations which will ensure even greater compliance in the future. These recommendations include tightening controls and revisiting policies to eliminate inconsistencies or ambiguities.

“I think that we all can agree that the adoption of new policies has inspired the reform we sought,” said Senator Hughes. “The independent expense audit and the resulting corrective action confirm that PHEAA’s culture as well as processes, are changing.”

The Audit Review Committee provides ongoing oversight for the Board of Directors regarding PHEAA’s financial reporting processes, systems of internal control, audit functions, data security and processes for monitoring compliance with state and federal laws and regulations.