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" ?? ?"  ?#  ??#  ?#  # $!$!?$!X$!? %"? ?%"? <? %"  %"  ?&#  &#  &# ? ?&#~ '$?'$'$(%?(%(%)&)&?)&*'*'*'*(+(+(,) ,) ,*-* -* .+?.+/,/,0-?0-1.2/2/30 41 52 63758uCa:\edlogo3.pcx) p`CG Times234G(2$0 0 0 0 I- ($      +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ KLMXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ рo[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)LenderisdefinedinAppendixC.NX>=XN)X>=XXNX>= ##))Xd#        <6X9`(.Courier 10cpiTT TT)  +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ PQRXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)ԢServicerisdefinedinAppendixC.NX>=XN)X>=XXNX>= ##))Xd#         G +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ TUVXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)SeedefinitioninAppendixC. ##))Xd#         l +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ XYZXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)Appliesattheindividuallenderidentificationnumber(ID)level. ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ \]^XXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)Forthepurposeofmakingthisdetermination,theterm everyaspectmeans  allthefunctionsaddressedinthecompliancerequirementsspecifiedinthisGuide.Therefore,aseparateauditwouldberequiredoftheservicerifthelendersauditisnarrowinscopeanddoesnotcoverallofthefunctionsaddressedinthecompliancerequirementsspecifiedinthisGuidethatareperformedbytheservicerfortheirlenderclient. ##))Xd#         ? +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ `abXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ )X)X>=N)Footnote1ofSSAENo.4,AgreedUponProceduresEngagements(AICPA,  ProfessionalStandards,vol.1,ATsec600),providesdetailsofSSAENo.4'samendmentsofSSAENo.3.NX>=XN)X>=XXNX>= ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ defXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)TheSingleAuditActof1984wasamendedbytheSingleAuditActAmendmentsof  1996andiseffectiveforfiscalyearsbeginningafterJune30,1996.WeunderstandOMBintendstocombinetheauditrequirementsunderCircularsA133andA128.ItisexpectedthatOMBwillreviseCircularA133toalsobeapplicabletostateandlocalgovernmentsandthenrescindOMBCircularA128.ManagementandPractitionersshouldbealerttochangesinrelevantstatutesandOMBrequirementsandapplytheprovisionscontainedthereinaccordingly.NX>=XN)X>=XXNX>= ##))Xd#        )Lr  Z (CG Times RegularFRAUD)i  Z (CG Times Regular `CG TimesW1)L  Z (CG Times Regular { +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ mnoXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXoӀ)X)X>=p)Forexample,EDForms799,IndividualRecordReview,LoanOriginationFeesetc. ##))Xd#        <6X9`(6Courier 10cpiTT T T TT)  +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ rstXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @  @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ р)X)X>=N)Unlessotherwisespecifiedbystatutory/regulatoryauthority,theterm timely  mannermeansassoonaspossibleinthecourseofbusiness.Practitionersshould  useprofessionaljudgementandshouldalsomakethedeterminationinrelationtotheactivityinvolved.Forexample,sinceEDForm799'sarefiledonaquarterlybasis,noncompliancerelatedtotheclassificationofloansreportedonthe799filedinthesecondquarterwouldnothavetobereportediftheentitysinternalcontrolovercompliancedetectedandcorrected(properlyreclassifiedtheloansandmadeanyadjustmentsaccordingly)thenoncompliancebythetimetheentityfiledthenext799inthethirdquarter. ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ vwxXXX)X>=|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXo @ )X>=XXX|(X` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[Xo[X` hp x (#%'0*,.8135@8:<H?AXoӀ)X)X>=N)Seefootnote9herein.NX>=XN)X>=XXNX>= ##))Xd#         dTable_A dTable_BII- * `CG Times  +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ|(Xr hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AXr X{ @ XXX)X>=|(Xr hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AXr X{ @ )X>=XXX|(Xr hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AXr X{Ӏ)X)X>=p)Paragraph39saysfurther:Toobtainsuchanunderstanding,apractitioner  shouldconsiderthefollowing:(a)Laws,regulations,rules,contracts,andgrantsthatpertaintothespecifiedcompliancerequirements,includingpublishedrequirements;(b)Knowledgeaboutthespecifiedrequirementsobtainedthroughpriorengagementsandregulatoryreports;(c)Knowledgeaboutthespecifiedcompliancerequirementsobtainedthroughdiscussionwithappropriateindividualswithintheentity(forexample,thechieffinancialofficer,internalauditors,legalcounsel,complianceofficer,orgrantorcontractadministrators);and(d)Knowledgeaboutthespecifiedcompliancerequirementsobtainedthroughdiscussionswithappropriateindividualsoutsidetheentity(forexample,aregulatororthirdpartyspecialist). ##))Xd#         K +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљo[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)CopiesoftheCodeofFederalRegulationscanbeobtainedbycontacting  theSuperintendentofDocuments,U.S.GovernmentPrintingOffice,WashingtonD.C.20402at(202)5121800oraCompilationofStudentFinancialAidRegulationscanbeobtainedbycalling18004FEDAID.NX>=XN)X>=XXNX>= ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљo[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)CopiesofEDsDearColleagueLettersorClarificationletterscanbe  obtainedby(1)calling18004FEDAIDor(202)4012412or(2)byfaxingrequeststo(202)2050657. ##))Xd#        )m  Z (CG Times Regular  +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљo[X` hp x (#%'0*,.8135@8:<H?AXo @ р @  @  @ o[X` hp x (#%'0*,.8135@8:<H?AXo @ )X)X>=)TheSecretarypaysinterestbenefitsonconsolidatedloansiftheloan  applicationwasreceivedbythelenderonorafterJanuary1,1993butnotlaterthanAugust9,1993,oriftheconsolidationapplicationwasreceivedbythelenderonorafterAugust10,1993andonlyifalloftheunderlyingloans 4 consolidatedaresubsidizedStaffordloans.X>=X)X>=XXX>= ##))Xd#        <9Z &Courier Regular  +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=Xљ=XљXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XX=XљXXX)X>=|(X4 hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X{[X` hp x (#%'0*,.8135@8:<H?AX4 X{ @ )X>=XXXo[X` hp x (#%'0*,.8135@8:<H?AXoӀ)X)X>=N)PertainstosubsidizedStaffordloansandsomecategoriesof  Consolidatedloans(seeprocedured).Forloansdisbursedon/after10/1/92,regulationsallowlenderstobillEDforinterest,however,oncethelenderknowstheloanisunconsummated,alltheinterestpaidbyEDforthoseloans 4 mustbereturnedtoED.NX>=XN)X>=XXNX>= ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XX=Xљ=XљXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XX=XљkXXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XXkXo[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)SeedefinitioninAppendixC. ##))Xd#          +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo @ XXXX)X>=XXX8)>=)XXdd8 @ @@  ݛ=XљXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XX=Xљ=XљXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XX=XљkXXX)X>=|(X4` hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[X~[X` hp x (#%'0*,.8135@8:<H?AX4` X~ @ )X>=XXkXo[X` hp x (#%'0*,.8135@8:<H?AXo @ р @ o[X` hp x (#%'0*,.8135@8:<H?AXo)X)X>=N)PertainstoallFFELloans.Forloansdisbursedon/after10/1/92,  regulationsallowlenderstobillEDforspecialallowance,however,oncethelenderknowstheloanisunconsummated,allspecialallowancepaidbyEDfor j thoseloansmustbereturnedtoED. ##))Xd#        STATUS CHANGES!Table_C&0 d dIII- SERVICE REPORTIV- A- B- C- B- ; `(CG TimesScalable  !  =    |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oXXXc=(hH  Z 6Times New Roman Regularc|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oXXXUk)L  Z (CG Times RegularU|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[    e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oe[X` hp x (#%'0*,.8135@8:<H?Ae  р  e[X` hp x (#%'0*,.8135@8:<H?AeӀc=(hH  Z 6Times New Roman RegularcParagraphs54and55ofSSAENo.3explainhowthepractitionershouldreportif,alternatively,managementpresentsitswrittenassertionsinaseparatereport.[N<6X9`(.Courier 10cpiTT TT)[ ##))Xd#          !  =    |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oXXXc=(hH  Z 6Times New Roman Regularc|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oXXXUk)L  Z (CG Times RegularU|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[    e[X` hp x (#%'0*,.8135@8:<H?Ae  XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oe[X` hp x (#%'0*,.8135@8:<H?Ae  р      e[X` hp x (#%'0*,.8135@8:<H?Ae  рc=(hH  Z 6Times New Roman RegularcParagraph61ofSSAENo.3says thepractitionershouldmodify[thestandardreport]ifanyofthefollowingconditionsexists:0..Thereismaterialnoncompliancewithspecifiedrequirements.0..Thereisamatterinvolvingamaterialuncertainty.0..Thereisarestrictiononthescopeoftheengagement.0..Thepractitionerdecidestorefertothereportofanotherpractitionerasthebasis,inpart,forthepractitionersreport.XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)oc=(hH  Z 6Times New Roman RegularcParagraphs62through68ofSSAENo.3givepractitionersguidancewhenanexaminationofmanagementsassertionsaboutanentityscompliancewithspecifiedrequirementsdisclosesmaterialnoncompliance.XXXo)<6X9`(BCourier 10cpiTT T T T T T TT)o ##))Xd#        ) `(CG TimesScalable\ ` = !  =    |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-\ `-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-2`-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[    e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-e[X` hp x (#%'0*,.8135@8:<H?Ae  р    e[X` hp x (#%'0*,.8135@8:<H?Ae-<6X`(-Seefootnote1herein.<6X`( ##Xd#        2`<6X`(*`2*0  !  =    |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-\ `-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-2`-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[    e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-        e[X` hp x (#%'0*,.8135@8:<H?Ae  р-<6X`(-Seefootnote2herein. ##Xd#         > !  =    |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-\ `-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-<6X`(-XXX-2`-|(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[    e[X` hp x (#%'0*,.8135@8:<H?Ae  XXX-2`-  e[X` hp x (#%'0*,.8135@8:<H?Ae    XXX-$\ `-Thepractitionershouldfollowtheguidanceinparagraphs2428ofSSAENo.3,ifconditionsexistwherethereportshouldbemodified. ##Xd#        $\ `Table_DC- )`D- E- F-   (*      |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?AeXXX-<6X`(-XXX-<6X`(-e[X` hp x (#%'0*,.8135@8:<H?AeXXX-<6X`(-e[X` hp x (#%'0*,.8135@8:<H?Aee[X` hp x (#%'0*,.8135@8:<H?Ae&&&-2*0-@..j F    -)`-e[X` hp x (#%'0*,.8135@8:<H?Ae@..f 400MarylandAvenue,S.W.,Washington,D.C.202021510  -'      |(X4hp x (#%'0*,.8135@8:<H?ACPFHKXMOR`TVYh[  e[X` hp x (#%'0*,.8135@8:<H?AeXXX-<6X`(-XXX-<6X`(-e[X` hp x (#%'0*,.8135@8:<H?AeXXX-<6X`(-e[X` hp x (#%'0*,.8135@8:<H?Ae   X e[X` hp x (#%'0*,.8135@8:<H?AeXXX-*`-%..  APPENDIXF X -*`-@.. UNITEDSTATESDEPARTMENTOFEDUCATION-2*0-@..officeofinspectorgeneralXXX-*`-dTable_E(!2{$ +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo  XXXX)X>=XXX8)>=)XXdd8    =XљXX)X>=Ҁ  0   CRight ParRight-Aligned Paragraph NumbersI.A.1.a.(1)(a)i)a)3|w< `(CG TimesScalableXXw P7XP<6X9`(BCourier 10cpiTT T T T T T TT)Xx6X@;X@;`imesScalable T T T TT)O P7P< `(CG TimesScalable T T T TT) P 7P<`imesScalable T T T TT) P 7P< `(CG TimesScalable T T T TT) P7P; `(CG TimesScalablelarTT)&&m Pi7&P\ `s New Roman RegularTT)&&G\  P}&P\ `s New Roman RegularTT)A\  P}P<6X`(s New Roman RegularTT)Xx6X@};X@\ `s New Roman RegularTT)XXN\  P}XP2`s New Roman RegularTT)XX P}7XP<6X`(s New Roman RegularTT)RZ6X@}@*`s New Roman RegularTT)XXw P}7XP2*0s New Roman RegularTT)&&*0 x}7&<6X`(s New Roman RegularTT)&&n6X@}&@2`s New Roman RegularTT)&& P}7&P$\ `s New Roman RegularTT)X*e\  P}XP2`s New Roman RegularTT) P}7P)`s New Roman RegularTT)&&m P}7&P2*0s New Roman RegularTT)XX*0 x}7X*`s New Roman RegularTT) P}7P)`s New Roman RegularTT)c P}7P*`s New Roman RegularTT) P}7P)`s New Roman RegularTT)O P}7P2*0s New Roman RegularTT)*0 x}7*`s New Roman RegularTT) P}7P(&+O$  o[X` hp x (#%'0*,.8135@8:<H?AXo  XXXX)X>=XXX8)>=)XXdd8  ]D#VKY)` GߛU +O!  o[X` hp x (#%'0*,.8135@8:<H?AXo  XXXX)X>=XXX8)>=)XXdd8    ݛ XXX)X>=@XX$December1996     ӢLS9701  DearColleague:ThislettertransmitstheU.S.DepartmentofEducationsAuditGuide,ComplianceAudits 0  (AttestationEngagements)forLendersandLenderServicersParticipatingintheFederalFamilyEducationLoanProgram.ThisguidesupersedestheMarch1995LenderAuditGuide. b  Section428(b)(1)(U)oftheHigherEducationActof1965,asamended,(HEA)andSection682.305(c)ofTitle34oftheCodeofFederalRegulations(CFR)requirealllendersparticipatingintheFederalFamilyEducationLoan(FFEL)Programtohaveanannualcomplianceauditperformedbyanonfederalauditor.Aparticipatinglenderis