Session 68
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Session 68. LaRS Review Session Martha Shine Angela Baker. LaRS Process Overview. Invoice Submission – quarterly submission of lender portfolio activity Validation – edit routine to ensure data reliability & accuracy Notification – alerts to lenders & servicers

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Session 68

Session 68

LaRS Review Session

Martha Shine

Angela Baker


Lars process overview

LaRS Process Overview

  • Invoice Submission – quarterly submission of lender portfolio activity

  • Validation – edit routine to ensure data reliability & accuracy

  • Notification – alerts to lenders & servicers

  • Payment/Collections – process for issuing payments and collecting debts

  • Reports – management information tools


Lars process flow

LaRS Process Flow

Payments

  • Automated Clearinghouse (ACH)

  • U.S. Treasury Offsets

Accounts

Payable

Module

Validation

Lender/Servicer

Invoice

Submission

Alerts

Lender

Accounts

Receivable

Module

  • Origination Fees

  • Lender Fees

  • Interest Subsidy

  • Loan Activity

  • Loan Portfolio Status

  • E-Mail Alert FTP Users

  • (SAIG – receipt of file)

  • Check data

  • (e.g. valid

  • combinations)

  • E-Mail Alert

  • (FTP users)

  • Reasonability

  • Lender Search Report

  • E-Mails

  • Payments

  • Receivables

Collections

  • Origination & Lender Fees

  • Consolidation Loan Rebate Fee

  • Review Findings

  • Check or ACH acceptable

  • http://www.fp.ed.gov/PORTALSWebApp/fp/Manuals.jsp


Lars validation is your data correct

LaRS – Validation (Is your data correct?)

  • Origination and Lender Fees

    • Loan type, fee percent & interest rate validation

  • Interest Benefits

    • Loan type & interest rate validation

  • Special Allowance Subsidy

    • Loan type, SAP category, & interest rate validation

  • Loan Activity & Portfolio Status

    • Completeness and accuracy


Lars notifications

LaRS - Notifications

  • E-Mail Alerts

    • File transfer acceptance

      • Single versus multiple invoice submission

    • Payment notification

      • Invoice Detail

    • Receivable notification

      • Invoice Detail

      • Weekly

    • Reasonability


Lars notifications1

LaRS - Notifications

  • Technology Challenges

    • Returned mail

    • Spam & pop-up blockers


Lars notifications2

LaRS – Notifications

  • Payments

    • Disbursements made within 7-10 business days

    • Notifications issued 12-24 hours prior to payment

    • U.S. Treasury Offsets

      • Incoming ACH – ‘TCS TREAS 449’

        • call (800) 304-3107


Lars notifications3

LaRS – Notifications

  • Receivables

    • Payable to FSA

    • Due upon receipt

    • Lender billed weekly

    • Funds Remittance Guide http://www.fp.ed.gov/PORTALSWebApp/fp/Manuals.jsp


Lars lender search report

LaRS Lender Search Report

  • On-line users

    • Available prior/post submission

  • File transfer

    • Available post submission


Lars lender search report1

LaRS Lender Search Report

  • Access

    • FMS with appropriate user id/password

  • Uses

    • Reconciliation

    • Compliance audit

    • FSA lender reviews


Lars review objectives

LaRS Review Objectives

  • To verify the procedures are adequate

  • To confirm the accuracy to book and records

  • To verify accurate billing/payment of each LaRS invoice

  • To verify timely filing


Core elements of a lars review

Core elements of a LaRS review

  • Disbursement & other procedures

  • Reconciliation of LaRS invoice to the general ledger

  • Test Interest Rate Changes

  • Test LaRS data elements

  • Validate timeliness of LaRS submission

  • Test Reporting NSLDS Data to GA


Review process

Review process

  • Selection of entity type and scope period

  • Pre-planning,(notification of documents needed, sampling, identify data formats, and summary data analysis)

  • Test data accuracy of LaRS quarterly invoice(s) (sample calculations)


Review techniques

Review Techniques

  • Compare origination & lender fees to effective dates

  • Compare interest rates to effective dates

  • Compare special allowance codes to effective dates

  • LaRS part comparison (e.g. sales)


Review techniques cont d

Review Techniques cont’d

  • Design your sampling spreadsheet to cover specific scope period requirements, in lieu of general requirements.

  • Gear pre-plan to review LaRS for specific entities, such as, lender, school lender, exceptional performer or common review initiative.


Review techniques cont d1

Review Techniques cont’d

  • Remember, LaRS data is at the summary level. Your sample should look at loan level detail.

  • Utilize Data Mart during pre-planning for lender and servicer identity, lender scorecards, access to historical lender data (pre 2002) and monthly data loads for PEPS, NSLDS, LaRS

  • Utilize PEPS to determine previous review periods, deficiencies and any liabilities paid


Review techniques cont d2

Review Techniques cont’d

  • Utilize NSLDS to verify repayment conversion date, last date of attendance, borrower status, loan type, disbursement date, lender and servicing history.


Lars review techniques cont d

LaRS Review Techniques cont’d

  • Verify the accuracy of ending and average daily balances reported in Part IV, LARS by reviewing sampled loans using payment history.

  • Verify that variable interest rate changes are updated timely and accurately.


Lars review techniques cont d1

LaRS Review Techniques cont’d

  • Lender/Servicer Eligibility

  • Part Comparison (e.g. accurately reporting disbursements in Parts I & IV)

  • Fee calculation


Timely filing

Timely Filing

  • Utilize Data Mart to check for LaRS submission gaps

  • Invoice must be submitted within 90 days of the end of the quarter


Challenges

Challenges

  • Consolidation Loan Rebate Fee

    • Work with your lender/servicer to ensure timely payments to ED.

  • ACSI – Customer Satisfaction

    • On-line form navigation & correction

  • Informed Lenders

    • Servicers improve communication with clients.

    • Lenders - notify FSA of personnel changes


Resources

Resources

  • FP Portal (www.fp.ed.gov)

    • Rates, Forms & User Guides for guarantors & lenders

    • http://www.fp.ed.gov/PORTALSWebApp/fp/Manuals.jsp

  • IFAP (www.ifap.ed.gov)

    • Policy updates

  • Lender Reporting Team @ [email protected]


Technical slide

Technical Slide

We appreciate your feedback and comments.

We can be reached at:

Martha Shine, 312-886-8760

Email: [email protected]

Angela Roca-Baker, 202-377-3322

Email: [email protected]


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