Financial Partners - 2005

Entering School and Lender Reviews by Guaranty Agencies

Audit and Default Information

Training Guide/Manual
Volume VI January 2006
Part I

U.S. Department of Education – Federal Student Aid

(VISIT OUR WEBPAGE @ www.ed.gov/offices/OSFAP/PEPS)

(The information in this guide is fictitious and was created for training purposes.)
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 Table of Contents
Volume VI, Part 1
Financial Partners Module
WHAT’S NEW Recent Changes to the System 3
REVIEWS Review Query 4
Review Detail 19
Review Deficiency Query 28
Review Deficiency Detail 35
AUDITS Audit Query 39
Audit Detail 49
Lender Audit Tracking Query
50
Lender Audit Tracking Detail 56
Lender Servicer Audit Tracking 60
GA Servicer Audit Tracking 60
Exceptional Performer Audit Tracking 60
Audit Deficiency Query 61
Audit Deficiency Detail 67
ACTIONS Action Query 68
Action Detail 72
APPEALS Appeal Query 74
Appeal Detail 78
DEFAULT INFORMATION GA Default Rates 80 2
Lender Default Rates 86
 What’s New

•Servicer review records has a new feature that allows you to record
those lenders that are reviewed at the servicer more easily. See Part 1,
page 26 for further details.
•Exceptional Performer Designation quarterly audits are being
tracked and recorded in the Audit section. That section starts on Part 1,
page 39.
•Exceptional Performer Designation is now recorded on the entity’s
detail screen. See Part 2, page 94 and 103 for further details.
•New scope codes have been added to capture reviews done as part of
the exceptional performer designation and the CRI initiative. See
Appendix D for a list of scope codes.
• Appendix D has field definitions for program review records and a list
of points to remember.

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 REVIEWS
Review Query: To view data on program reviews that have been conducted on
Lenders, Servicers, and Schools (only Guarantor reviews of Schools), From the
main menu bar choose “More/Financial Partners/Reviews/Review Query.”

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The PEPS Tool Bar used within the Financial Partners module is similar to the
Tool Bar used throughout PEPS.

5
This screen is used to get a list of reviews that have been conducted. You will be able to
see all records created by all guarantors and the Department’s reviews of lenders. We will
be viewing the dummy records that have been developed for the guarantor 611. Enter 611
in the GA column and select the “Magnifying Glass” from your Tool Bar.

Note: It is NOT recommended to click on the “Magnifying Glass” without entering

criteria to search from. Doing so would retrieve almost 20,000 records and cause the
PEPS system to slow down significantly.
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All records matching the selection criteria will be displayed. This first screen
contains information on the year and quarter in which the review was conducted. The
organization that performed the review, the entity being reviewed and scope related
to the review. Notice that there is one review that is listed multiple times (Kingsley
State Bank) because it had multiple scopes. Using the Horizontal Scroll Bar you
can read the additional text that is located to the right of the screen.

Shortcut
buttons to
view or
update (if
user has
access) more
detailed
information
on a record

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The second screen of review data contains information on the entity’s ID, name,
city, state and related date information. Continue to scroll to the right.

Upcoming reviews can be input in the system. It is important that everyone

input their scheduled reviews so that multiple organizations that plan to review
the same entity can consider performing joint or CRI reviews to help eliminate
redundancy. This is important to the success of the review process. 8
The third screen provides information on dates relating to the review, the reviewer
that performed the review, the level of the violations, and what type of review was
performed. Continue to scroll.

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The forth screen provides information on who updated this record, and the date it
was updated. To view the detail of the last review listed in this query, make sure
the last record is highlighted and select the “Detail” shortcut button at the bottom
of the screen.

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This is the detail information of the selected review from the query screen. You can
Create, Read, Update, and Delete (CRUD) information that relates to reviews conducted
by your Guaranty Agency, as well as, read information on reviews conducted by other
Guarantors and the Department.

Shortcut buttons
to view:
deficiencies, the
main info. of a
group of lenders
that are related;
their total
portfolio; the
deficiency
information
related to this
review; and to
print a cover
sheet for this
record.

Used when populating the lenders reviewed on a Servicer review. Please

refer to page 26 for more information. 11
If you notice this lender has an Assoc Cd (short for Association Code). That
means it is a part of a group of lender numbers that make up an organization.
Many lenders use multiple lender IDs. Mergers and acquisitions among lenders
are tracked in PEPS. Select the “Main” button.

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This screen shows the main name and the main location for the associated
group of lenders. If the lender does not have an Assoc Cd listed, this screen
will be blank. Select the “Red Door” button to go back to the detail record
and select the “Assoc Rollup” button.

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This screen shows the portfolio for the entire group of lender numbers rolled up into
quarters in the same year that the review was conducted. A message will display if the
lender has no other associated lenders or does not have portfolio for the review year.
More information is in Volume VI, Part 2 under Entity Maintenance/Lender Portfolio.
Select the “Red Door” to go back to the detail record.

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Select the “Cover Sheet” from the detail record and then choose “preview” to
review the cover sheet (see below) or “print” and attach to the review report.
Select the “Red X” to go back to the detail record.

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Select the “Deficiencies” button from the detail record and it will take you to this
screen. The deficiency screen provides information on assessed and paid liabilities and
their status. You can CRUD information on reviews conducted by your agency and
read information on all others. To view the amount assessed you would first click in the
line you want to view and select the “Assessments” button.

Note: There are alternate ways to access this screen by selecting “Deficiencies” in the
“Review Query” screen or by choosing “More/Financial Partners/Reviews/Review
Deficiency Detail.” 16
The Assessed Obligation screen shows how much liability was identified and
assessed against the lender or school in the program review report. The effective
date is usually the same as the date the report was issued. If the amount has not
been determined at the time the report is issued, this screen will remain blank.
Select the “OK” button to go back to the deficiency screen and then select the
“Payments” button.

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The Paid Obligations screen provides information on the type of organization
making the payment, how the payment was made, type of obligation being paid,
amount and effective date of payment. Select the “OK” button to exit and the red
door icon on the next three screens to return to the main menu.

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Review Detail: To create or update records it is easiest to go directly to the
“Review Detail” by choosing “More/Financial Partners/Reviews/Review
Detail.”

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 To create a new record press the “Open Book” then enter an OPE ID and tab or
press enter. If the lender has reviews it will display a list to choose from or cancel to
start a new record. If starting a new record, click in the Review Dt field and
complete as many of the items within the squares as you can. Once finished, to enter
another record simply press the “Open Book” again and follow the steps above.

Note: See Appendix D for a list of field definitions for those fields within the squares.
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Once completed, select the “Diskette” icon to save this record. The message at
the bottom should read that the record has been saved. The Seq# will be
populated once this record has been saved. To enter the assessed deficiencies
associated with this review, select “Deficiencies”.

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Click in the Defic column and enter a valid deficiency code. The default option of
open status should remain open until that deficiency has been resolved and paid.
Click into the Defic column on the second row and enter another valid deficiency
code. To enter an assessed amount associated with one of the codes, make sure
the cursor is on the correct line and click the “Assessment” button.

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For a liability assessment that is due from the school, click on the Org Type LOV
and choose School. Tab or click to Assessed Amt Type LOV and choose Liability.
Tab or click to Assessed Amt and type an amount. Tab or click to Effective Date
and enter a date. The date is normally the same as the Report Issue Date which is
usually when the assessment is made. Click in the Assessed Amt column to add
additional rows. Click on “OK” to exit and save.

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Add a new deficiency code and click the “Payments” button to add an amount
that was received or verified that it was paid.

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For a liability received from the school, change the org type to school and the
Payment Type to liability. Complete the method, amount and date. If the
liability is different than the default simply so back and change. Select the “OK”
to exit and save. Select the “Red Door” icon in the next screen to return to the
review record.

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Entering Servicer Review Records: If entering a servicer review, once the review
and deficiency information has been input and saved. You will then need to add those
Lenders reviewed as part of the Servicer review. Click on the “Underlying Lenders”
button.

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Enter those lenders that were reviewed as part of the Servicer review. Once
you have entered the lenders press the “Diskette” to save the record. Each
will be assigned a PRCN which can be accessed individually and all
information related to the servicer review will be automatically populated on
the individual lender record.

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Review Deficiency Query: To review deficiencies that have been identified in
program reviews, choose “More/Financial Partners/Reviews/Review
Deficiency Query.”

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To get a list of deficiencies that have been identified by the 611 guarantor. Scroll
over to the GA column (between the By and For column) and enter 611. Select
the “Magnifying Glass” icon.

29
The query will retrieve records similar to these test records. Using the horizontal
scroll bar you can see the additional information that is located to the right of the
screen.

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Query Review Deficiency Results - Second Screen

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Query Review Deficiency Results - Third Screen. To download this data into an
excel spreadsheet, select the “Folder Tabs” icon to extract the file.

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The following window will be displayed. Enter a path and file name. In this case
enter after the C:\ pepsdata and deficiencies.csv as the file name, to create an
excel compatible file, and select “Create File”

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A message should appear to inform you that the extract was downloaded into the
path you specified. You can now open the file into excel or access. Click the
“OK” on that message and then the “Red Door” to return to the main menu.

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Review Deficiency Detail: To view or update deficiency information on specific
records, (if the user has access) choose “More/Financial Partners/Reviews/Review
Deficiency Detail.”

35
To update or view deficiency information on a specific record, press the “Open
Book” and enter the lender ID at the top of the screen and tab. The most current will
be displayed.

Note: There are various ways to access the deficiency data. The Review Query
screen, the Review Detail screen, and the Review Deficiency Query screen all have
shortcut buttons that are accessible, if data is displayed.
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To view a list of all the PRCNs, select the “Up/Down” arrow next to the PRCN
information and you will get a list to choose from. If you select a PRCN that is
not your agency’s, the system will not allow you to update that record. The 6th
and 7th position of the PRCN identifies the Region Code. Every guarantor has a
designated Region Code.

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The deficiency information for the selected PRCN is displayed. You can toggle
back and forth among PRCN for this entity by pressing the “Up/Down” arrow.
Once your desired record is displayed, you may begin entering deficiency
information. Select the “Red Door” icon to exit.

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 AUDITS

Audit Query: To view information in a spreadsheet format on audits that have

been received by the Department, choose “More/Financial Partners/Audits/
Audit Query”

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This screen will provide information on audits that have been received by
Financial Partners. Enter a year that you are interested in viewing and other
specific criteria relevant to the results you desire. Select the “Magnifying Glass”
icon.

40
You should have similar results from the query. Using the horizontal scroll bar,
there is additional information located to the right of the screen.

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Audit Query Results - Second Screen

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Audit Query Results - Third Screen

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Audit Query Results - Fourth Screen. Scroll back to the beginning.

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This is the audit detail record. It provides information on the entity performing
the audit, dates that are related to the audit, type and date of response, HQ and
Regional referral information, deficiency and servicer information. As in the
review records, you would select the “Defic” button to view the detailed
information of the deficiencies associated with this audit.

Note: There is an alternative way to access this screen by choosing

“More/Financial Partners/Audits/Audit Detail”
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 This is the audit deficiency detail screen. No deficiencies were found for this
audit. These screens are slightly different than the review deficiency screens. We
have been working on upgrading the views and the audit screens have not been
done.

Note: There are alternative ways to access this screen by selecting

“More/Financial Partners/Audits/Audit Deficiency Detail” or selecting “Defic”
in the Audit Query results screen or selecting “Detail” in the Audit Deficiency
Query results screen. 46
A cover sheet reflecting the information related to this audit can be printed by
pressing the “Cvr Sheet” button. The servicer information that is associated with
an audit can be viewed by selecting the “Servicer” button.

47
This is the screen when “Servicer” is selected. Multiple servicer names and
numbers that are used by the lender and associated with this audit are recorded in
this section.

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Audit Detail: See page 45.

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Audit Tracking Query: Those lenders required to submit an audit are tracked in
the audit tracking section. To query those lenders in a spreadsheet format, choose
“More/Financial Partners/Audits/Audit Tracking/Lender Audit Tracking
Query”

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Currently all lenders with a portfolio that is = > $10M for 1995, 1996, and
1997 and =>$5M for 1999 and after; will be displayed. Scroll to the right to
view the additional info.

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Lender Audit Tracking Query - Second Screen.

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Lender Audit Tracking Query - Third Screen.

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Lender Audit Tracking Query - Fourth Screen.

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Lender Audit Tracking Query - Fifth Screen. Select the “Red Door”
icon to exit to the main menu.

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Lender Audit Tracking Detail: The detailed record on the lenders required to
submit an audit. To view the detail on those lenders, choose “More/Financial
Partners/Audits/Audit Tracking/Lender Audit Tracking Detail”

56
This is the audit tracking detail record. This screen provides information on the
letters that were sent for tracking purposes, the origination YTD amount, and
quarterly outstanding amounts. Select the “Servicers “ button to view the
servicers this lender does business with.

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This screen lists the servicer that the lender utilizes. Select the “Red
Door” icon to go back to the previous screen and select the “Roll Up
Detail” button.

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This Roll Up Query screen provides the detail information on the lenders
associated with the consolidated portfolio data used to track the lender
audits. If you scroll to the right you will see the individual portfolio data for
each lender. Select the “Red Door” icon once you finish scrolling to go
back to the main menu.

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Lender Servicer Audit Tracking and GA Servicer Audit Tracking and
Exceptional Performer Audit Tracking: These new sections were recently
added. The screens are similar to the others already covered and starts with the
current audit period ending 2003.

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Audit Deficiency Query: To view the deficiencies associated to an audit in a
spreadsheet format choose “Menu/Financial Partners/Audits/Audit Deficiency
Query.”

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To view the deficiencies that were identified in an audit, enter the year that you
are interested in viewing and any other specific criteria relevant to the results you
desire. Select the “Magnifying Glass” icon.

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The query will retrieve records similar to these. Using the horizontal scroll bar,
you can view other information located on the right of this screen.

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Audit Deficiency Query - Second Screen

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Audit Deficiency Query - Third Screen. Scroll back to the beginning and select
“Detail” on the first record to view the deficiency information.

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This is the audit deficiency detail of the selected record. Select the “Red Door” icon
to exit. Select the “Red Door” icon again to return to the main menu.

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Audit Deficiency Detail: See pages 46 and 66.

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 ACTIONS

Action Query: To get a list of administrative actions taken against a lender or

servicer, choose More/Financial Partners/Actions/Action Query.

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Currently there is no data available to populate this area. Scroll over to the right
to view additional fields.

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Query Admin Actions - Second Screen

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Query Admin Actions - Third Screen. Select the “Red Door” icon to exit.

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Action Detail: To view additional information on an administrative action,
choose More/Financial Partners/Actions/Action Detail.

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 There is no data available to populate this screen. The action detail screen
provides more detailed data about the action. Select the “Red Door” icon to exit
to the main menu.

Note: There is an alternative way to access this screen by selecting “Dtl” in the Action
Query screen.
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 APPEALS
Appeal Query: To view the appeals that have been received in Financial Partners
for lenders and servicers choose More/Financial Partners/Appeals/Appeal
Query.

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Currently this area has not been populated. Therefore, no data can be viewed.
This area will have the lender and servicer appeals that have been received for
audits and reviews. Scroll over to the right to view the additional fields to the
right of this screen.

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Appeals Query - Second Screen.

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Appeals Query - Third Screen. Select the “Red Door” icon to return to the main
menu.

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Appeal Detail: Additional information on an appeal received from a lender or
servicer can be viewed by choosing More/Financial Partners/Appeal/Appeal
Detail.

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The appeal detailed screen provides additional information on the type of activity that
is being appealed and the dates associated with the appeal. Select the “Red
Door”icon to return to the main menu. To see the related detail or deficiencies related
to this appeal press “Rltd Dtl” or “Rltd Defic” buttons.

Note: There is an alternative way to access this screen by selecting the “Details”
in the Appeal Query screen.
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 DEFAULT INFORMATION
GA Default Rates: You can view the default rates of and letters sent to lenders and
guarantors. To view the default rates for guarantors choose More/Financial
Partners/Default Information/GA Default Rates.

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To list all guarantor default rates for 2000 enter 2000 in the Cohort Year. Select
the “Magnifying Glass.”

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The query resulted in a list of guarantor’s default rate in ascending order by their 3
digit GA code. The first record (555) is an internal number used by the Department.
To view the guarantor associated with the GA code, either scroll to the right or click on
the three digit number and select the “Double Plus Sign” and the detail of that agency
will be displayed or scroll to the right to view that information.

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Guarantor Default Rates Result - Second Screen. You can view the form letter
that was sent to the agencies with a default rate for that year by pressing “Prt
Lettr.” Select the “Red Door” to exit.

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GA Default Rate Letters: To view the letters that were sent a particular
guarantor in a cohort default year choose More/Financial Partners/Default
Information/GA Default Letters.

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To view the letter data for 2000 enter 2000 in the Cohort Yr and select the
“Magnifying Glass”. This screen provides information on the letters that were
sent to the guarantors and if there were corrections made to the original letter sent,
the corrected rate would be listed on this screen. To date we have not had any
guarantor corrected rates. Select the “Red Door” to exit.

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Lender Default Rates: To view the default rates for lenders choose
More/Financial Partners/Default Information/Lender Default Rates. The
screens for the lender default rates are similar to the guarantor default rates. Refer
to page 81.

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Default Rate Letters: To view the letters that were sent a particular lender in a
cohort default year choose More/Financial Partners/Default Information/
Lender Default Letters. The screens for the lender default letters are similar to
the guarantor default letters. Refer to page 85.

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