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eZ-Audit: Electronic Submission of Financial Statements and Compliance Audits

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
TABLE OF CONTENTS

Table of Contents

eZ-Audit Overview ............................................................................................................................................. 3

Frequently Asked Questions… ................................................................................... 3
eZ-Audit Technical Requirements .............................................................................. 5

School Group Submissions ........................................................................................................ 6
eZ-Audit Submission Requirements .......................................................................................... 8
eZ-Audit Rules of Behavior ....................................................................................................... 9

Questions/Concerns.................................................................................................. 13

eZ-Audit Registration ...................................................................................................................................... 14
Administrative Tasks/Security.......................................................................................................................... 16

Login ......................................................................................................................................... 16

New User Login ........................................................................................................ 18
Update My Profile Page ........................................................................................... 20
Forgot Password ...................................................................................................... 22
Logout ....................................................................................................................... 25
My Profile ................................................................................................................. 27
Change Challenge Questions ................................................................................... 30
Change Password ..................................................................................................... 31
Navigation ................................................................................................................ 32
Data Edits ................................................................................................................. 33

Manage Users .................................................................................................................................................. 35

Types of Users and Responsibilities......................................................................................... 35

Institution Administrator Homepage ........................................................................ 35
Creating Data Entry/Submitter Users ...................................................................... 37

Institution Profile Page/Status ......................................................................................................................... 38

Institution Profile ..................................................................................................... 38

Historical Submissions ............................................................................................................ 39
Annual Submissions ......................................................................................................................................... 40

Annual Submission Financial Statement................................................................................ 40
No Title IV Activity .......................................................................................................................................... 42

No Title IV Activity Submission Financial Statement ............................................................ 42
FSA Annual Submission – Financial Statements page .......................................................... 43
90/10 Revenue Calculation Attestation ................................................................................... 56
FSA Annual Submission Compliance Audit Information ...................................................... 59
FSA Annual Submission Completeness Checklist .................................................................. 62
FSA Annual Submission Upload Attachments ....................................................................... 65
FSA Annual Submission-Submit ............................................................................................ 68
Merger/Change in Ownership.......................................................................................................................... 71

Merger/Change in Ownership Submission Financial Statement........................................... 71
Balance Sheet ........................................................................................................................... 72
Merger/Change in Ownership Submission Upload Attachments ........................................... 74

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Merger/Change in Ownership Submission-Submit ................................................................ 77
Change in FY End ............................................................................................................................................ 78

Change in Fiscal Year End Submission.................................................................................. 78
Waiver ............................................................................................................................................................. 80
Closeout Audit Submission .............................................................................................................................. 83

Closeout Audit Compliance Audit Information ...................................................................... 83
Closeout Audit Submission Completeness Checklist .............................................................. 85
Closeout Audit Submission Upload Attachments ................................................................... 88
Closeout Audit Submission-Submit ......................................................................................... 90
New Institution/Reinstatement Submission ...................................................................................................... 91

New Institution/Reinstatement Submission Financial Statement .......................................... 91
New Institution/Reinstatement Submission Completeness Checklist..................................... 96
New Institution/Reinstatement Submission Upload Attachments .......................................... 99
New Institution/Reinstatement Submission-Submit ............................................................. 102
Stub Audit Submission.................................................................................................................................... 103

Stub Audit Submission Compliance Audit Information ....................................................... 103
Stub Audit Submissions Completeness Checklist.................................................................. 105
Stub Audit Submissions Upload Attachments ....................................................................... 107
Stub Audit Submission-Submit .............................................................................................. 109
Additional Information................................................................................................................................... 110

Additional Information Submission ...................................................................................... 110
Letters/ Notifications ..................................................................................................................................... 112
Notifications .................................................................................................................................................. 112
Resubmission/ Incomplete Letter ..................................................................................................................... 97
Delinquent Letter ............................................................................................................................................. 99
Reminder Email ............................................................................................................................................. 101
Appendix ........................................................................................................................................................ 102

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

eZ-Audit Overview
Frequently Asked Questions…
What is eZ-Audit?
eZ-Audit is a web based paperless single point of submission for financial statements and compliance
audits. A designee from your entity simply signs on to eZ-Audit, enters summary audit and financial data
directly from your report into a web form, attaches an electronic version of the report, and hits the submit
button. Your submission through eZ-Audit will allow for more rapid and efficient processing by the
Department of Education (ED) and therefore provide you with immediate feedback.
How does eZ-Audit work?
1.
Your entity submits its compliance audit data and summary financial data, as applicable via a web
form (follow this manual for complete instructions).
2.
Your entity also attaches an electronic copy of audit report in a non- editable pdf format (using
Adobe Acrobat).
3.
The eZ-Audit system automatically forwards flagged financials and/or deficient audits to FSA for
resolution.
4.
FSA communicates with you to reach resolution.
5.
As desired, you can periodically check eZ-Audit for the status of your report.
How does eZ-Audit Benefit You?
•
You will receive instant acknowledgement of receipt – no more lost reports!
•
You will no longer need to make any copies or send reports in the mail to ED.
•
Processing times will be greatly reduced, thus allowing for quicker remediation of findings.
•
Web forms will contain pre-populated fields.
•
There are no new reporting requirements – data entry will be limited to the same data already
contained in the reports.
•
The time spent submitting these forms should be less than 1 hour.
•
Status of your submissions will be accessible to you online at any time.
•
eZ-Audit Help Desk assistance is available at [email protected] or by calling 1-877-263-0780,
Monday – Friday, 9 a.m. – 5 p.m. ET.
Who at my entity will use eZ-Audit?
•
eZ-Audit Institution/Entity Administrator, selected by your entity, is responsible for:
o
Registering your entity with eZ-Audit
o
Providing/managing access to data entry and submission approval personnel, as identified by your
entity
o
Maintaining security information regarding entity’s users as required
•
eZ-Audit Data Entry Users, selected by your entity, are responsible for:
o
Entering data into the eZ-Audit system
o
Attaching non-editable, pdf files of financial statements and compliance audits
•
eZ-Audit Submission Approvers, selected by your entity, are responsible for:
o
Reviewing the submission prior to “submit”
o
Approving the submission via the “submit” action

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
What role should my auditor play in eZ-Audit?
You may choose to ask your auditor to serve in all roles listed above. It your auditor is not selected as a
Data Entry/Submitter User; you may request that your auditor electronically sends you your financial
statements and compliance audits in the non-editable pdf format using Adobe Acrobat. Please note that
the pdf files containing your financial statements and compliance audits will be included as attachments to
your eZ-Audit submission – all signature pages in the financial statements and compliance audits, as well
as the entity’s corrective action plan, must be scanned.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
eZ-Audit Technical Requirements

eZ-Audit is a web-based application. This means you will not need to load a new application
on your computer. You will simply need to ensure that you have an Internet browser –
Internet Explorer 11.0 or higher.
If you receive an error that does not allow you to access eZ-Audit when you type in
the URL from your Internet browser, please contact your network administrator and
request that he/she do one of the following:

NOTE
•
•

Open your firewall to allow all 165.224.xxx.xxx addresses through, which would
allow your entity access to all ed.gov sites
Conduct a lookup on ezaudit.ed.gov which will allow your entity access to eZ-Audit

eZ-Audit requires you to attach a non-editable pdf version of your annual submissions. Adobe
Acrobat must be used to create this attachment.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
School Group Submissions

ED considers a school group as a collection of schools whereby a single school within the group
(what ED calls the submitting institution (Locator) or a designated representative (such as a
State Auditor) submits a single consolidated financial statement and compliance audit together to
ED (For example; ITT, State of Louisiana (who submits for all the state schools in Louisiana),
etc.).
The submitting institution (Locator) must be located in the same state/region as the
Corporate Headquarters. If there are no schools located in the same state/region, the
lowest OPEID in the group will continue to be the submitting institution (Locator).
Schools that submit consolidated (covering more than one OPEID) financial statements
and multiple compliance audits will complete the Compliance Audit Information,
Checklist and Upload pages for each (OPEID) school in the group. The submitting
institution (Locator) can submit for all OPEIDs or the member school can complete and
submit their own information. The member school must be registered (See Registration
Instructions).
School Group Compliance Audit Information Page:

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When more than one OPEID is covered ED considers this to be a
school group. The school group should designate one of the OPEIDs as
the submitting institution. The submitting institution registers with the eZAudit and does the submission for all of the schools in the school group.
As part of the eZ-Audit submission, the submitting institution has to
complete the Compliance Audit Information page. This should be done
only once, covering all of the schools in the school group. In answering
the questions on the page, the submitting institution should answer
‘Yes” if the condition applies to any of the schools. For example, if any
of the schools participates in FFEL programs, the answer for the school
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
group would be ‘Yes’. If you have additional questions regarding school
groups, please send an email to [email protected] or contact the eZAudit Help Desk at 1-877-263-0780.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
eZ-Audit Submission Requirements

Effective, June 16, 2003 all schools required to submit financial statements and
compliance audits must submit via eZ-Audit. The Department of Education will no longer
accept paper submissions of financial statements and compliance audits.
When must an institution submit financial statements and/or compliance audit?
 All participating institutions must submit financial statements and
compliance audits annually. (34 CFR 668.23)
o Proprietary institutions’ financial statements and compliance audit is due six
months after the end of the fiscal year (34 CFR 668.23).
o All the Proprietary institutions will have to answer a question “Have you
disbursed Title IV funds?” before starting a submission.
** If your school did not disburse any Title IV funds, then you answer NO
to the question “Have you disbursed Title IV funds?” and you only have
to submit financial statements portion of the Annual Submission known
as “No Title IV Activity Financial Statement Submission.”
** If your school did disburse any Title IV funds then you answer YES to the
question “Have you disbursed Title IV funds?” and you have to submit both
financial statements and compliance Audit portion of the Annual
Submission known as “Annual Submission.”
** If your school did not disburse $500,000 or more in Title IV funds during
each of the two completed award years you may request a waiver.
 If you are seeking initial participation in the Title IV Program.
o Please note that an Application for Approval to Participate in Federal
Student Aid Programs (www.eligcert.ed.gov) should be filed at the time of
your submission.
 If you undergo a change in ownership, merger or change in structure.
o Please note that an Application for Approval to Participate in Federal
Student Aid Programs (www.eligcert.ed.gov) should be filed at the time of
your submission.
 If you wish to be reinstated to participate in Title IV program(s).
o Please note that an Application for Approval to Participate in Federal
Student Aid Programs (www.eligcert.ed.gov) should be filed at the time of
your submission.
 If your institution closes or loses eligibility to participate in the Title IV programs.
o Please note that you need only submit a close out audit.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
eZ-Audit Rules of Behavior

eZ-Audit is a Department of Education system. Department of Education computer systems are
provided for the processing of Official U.S. Government information only. All data contained on
Department of Education computer systems is owned by the Department of Education and may
be monitored, intercepted, recorded, read, copied or captured in any manner and disclosed in
any manner, by authorized personnel. THERE IS NO RIGHT OF PRIVACY IN THIS SYSTEM.
System personnel may give to law enforcement officials any potential evidence of crime found
on Department of Education computer systems. Unauthorized use of this system is a violation of
Federal law and can be punished with fines or imprisonment (P.L. 99-474). “Use of this system
by any user, authorized or unauthorized, constitutes consent to this monitoring, interception,
recording, reading, copying, and disclosure.”
You may decide to send FSA information, including personally identifying information. The information
you supply
– whether through a secure Web form, a standard Web form, or by sending an electronic mail
message – is maintained by FSA for the purpose of processing your request or inquiry. Various
employees of FSA may see the information you submit in the course of their official duties. The
information may also be shared by FSA with third parties to advance the purpose for which you
provide the information, including other federal or state government agencies. For example, if
you file a complaint, it may be sent to a financial institution for action, or information may be
supplied to the Department of Justice in the event it appears that federal criminal statutes have
been violated by an entity you are reporting to FSA.
The primary use of personally identifying information will be to enable the government to contact
you in the event we have questions regarding the information you have reported. If you are
concerned about how information about you may have been used in connection with the eZAudit web site, or you have questions about FSA’s privacy policy and information practices, you
should e-mail us at [email protected]. Electronic mail is not necessarily secure. You are
advised to be cautious when sending electronic mail containing sensitive, confidential
information. As an alternative, we advise users to give consideration to using postal mail.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. Rules of Behavior to view the detail rules
2. Accept & Continue
3. [email protected]
All eZ-Audit users are required to carefully read the eZ-Audit Rules of Behavior
document that can be accessed via the web at https://ezaudit.ed.gov.

NOTE

Questions/Concerns
eZ-Audit will continue to post updates and critical information to the eZ-Audit website and
the Knowledge Center at https://fsapartners.ed.gov.
Contact the eZ-Audit help desk at [email protected] or by calling 1-877-263-0780.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

eZ-Audit Registration
All institutions must submit a registration request letter to the Department of Education to
gain access to eZ-Audit. Please see the Registration Instructions on eZ-Audit Welcome Page.
To register, please mail a letter on your school’s letterhead that includes the following:
1. First and Last Name of appropriate person in authority (e.g. President/CEO/Chancellor)
2. Signature of person named in #1 above
3. First and Last Name of eZ-Audit Institution Administrator
4. Signature of designated eZ-Audit Institution Administrator
5. e-mail address of eZ-Audit Institution Administrator
6. Phone number and extension (if necessary) of eZ-Audit Institution Administrator
7. Fax Number
8. OPE ID
9. Fiscal Year End Date
If you are a State Auditor, please mail a letter on your state’s letterhead that includes the following:
1.
2.
3.
4.
5.
6.
7.
8.
9.

First and Last Name of appropriate person in authority
Signature of person named in #1 above
First and Last Name of eZ-Audit Institution Administrator
Signature of designated eZ-Audit Institution Administrator
e-mail address of eZ-Audit Institution Administrator
Phone number and extension (if necessary) of eZ-Audit Institution Administrator
Fax Number
Fiscal Year End Date
Attach list of all schools covered in the Statewide Audit. The list should include
the name of school and OPE ID.

Note: This data is requested for information purposes only, and will help eZ-Audit
provide better Customer Service.
How will I receive my registration confirmation and eZ-Audit Institution Administrator user ID
and password? Your registration confirmation and eZ-Audit Institution Administrator user ID
and temporary password will be sent to the email address provided in the registration request
letter that you mailed to the Department of Education.
You will receive two registration confirmation emails. The first email from eZ-Audit will
include your user name and instructions for accessing the eZ-Audit website. For security
purposes, your temporary password will be delivered in a second email from eZ-Audit.
Once I have sent in my Registration Request letter and have received my registration
confirmation emails, when and how do I begin using eZ-Audit?
To access eZ-Audit on or after April 1, 2003 simply type in the URL, www.ezaudit.ed.gov in
your Internet browser, and when the eZ-Audit login screen appears, type in the user name
and temporary password you received through email from eZ-Audit.
Even if you are not required to submit on April 1, please be sure to log on to the eZ-Audit

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

system immediately, in order to change your temporary password and ensure your access to
the site is secure.

What if I need to change my Institution Administrator?
To change your Institution Administrator a new registration letter, following registration instructions,
must be submitted. The new Institution Administrator will receive a username and password within 48
hours of receipt.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Login

Administrative Tasks/Security

After typing in the URL https://ezaudit.ed.gov in your Internet browser, the “Welcome to eZAudit” screen below should appear:

1. Enter the username provided to you during the registration process by email.
2. Enter in your password or your temporary password if this is your first time using this site.
3. Single click the LOGIN button-this will take you to your institution’s homepage.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
NOTE

Your user name will be the first letter of your first name, the first five letters of
your last name and 2 numeric characters. Your username and password are
case sensitive. If you are locked out after 3 unsuccessful attempts at login
you must wait 30 minutes then try again.

**If you have an existing user logging in for the first time, you will be presented
with the challenge questions and answers page where you will select the
questions and answer them accordingly.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
New User Login
If you are a new eZ-Audit user and have successfully logged into eZ-Audit for the first time, you
will be presented with the following screen after the Password Reset Functionality has been
implemented:

There are two sets of challenge questions to choose and answer accordingly.
1. Select a challenge question from the first drop down list. You will have the
following selection: Challenge Question List 1:
• What month is your mother born?
• What is your father’s middle name?
• In what city was your mother born?
• Which hospital where you born in?
• Who is your favorite author?
2. Type your answer to the question you have selected.
3. Select a challenge question from the first drop down list. You will have the
following selection: Challenge Question List 2:
• What is your favorite color?
• What is your favorite flower?
• What is your child’s middle name?
• Who is your favorite athlete?

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
• What is your favorite movie?
4. Type your answer to the question you have selected.
5. Click on the SUBMIT button. This will take you to the Update My Profile page where you will
type in your new password.

NOTE

All answers are case sensitive. You will not be able to view the answers as you
type them in.

1. Click the SAVE button to ensure all changes are successfully captured by the system.
Please note by selecting the save button you are also accepting the Rules of
Behavior.
2. Click the RESET button to cancel entries and begin again.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Update My Profile Page
After you successfully login by clicking on the Submit button from the Challenge Questions
page the following screen will appear on the screen. Enter your new password:

1. Type in your new password.

2.Re-type in your new password.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
The password must be 12-40 characters in length and must include uppercase, lowercase
letters and numeric values. Each password shall contain each of the following four types of
characters: English uppercase letters (A-Z). English lowercase letters (a-z). Westernized
Arabic numerals (0-9). Non-alphanumeric special characters (such as !,@,#,$,&,*). Clicking the
SAVE button ensures all information has been saved by the system. Please note that the
system will automatically prompt you to change your password every 90 days. Follow the
same process described above to make this change. If you require additional help, contact the
Help Desk at 1-877-263- 0780.

NOTE

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Forgot Password
If you forget your password, click on the “Forgot Password?” link from the login page.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
By clicking on “Forgot Password?” link, the Password Reset page should appear
requesting your user information:

1.
2.
3.
4.

Click on the check box to indicate that you are an institution user.
Enter your username.
Enter the OPEID of your institution.
Click the SUBMIT button. This will take to the Password Reset page
with the challenge questions.
5. Click the RESET button to cancel current entries and begin again.

Challenge Questions
After eZ-Audit validates your username, the questions you initially chose will appear:

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

1. Please type your answer to the first question.
2. Please type your answer to the second question.
3. Click the SUBMIT button. This will take you to a page that informs you a temporary
password has been sent to your email.
4. Click the RESET button to cancel current entries and begin again.

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The answers are case sensitive.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Logout

If you clicked on the LOGIN button from the page above, this will bring you to your institution’s
homepage. The screen below should appear with your institution’s name:

1. To logout of the eZ-Audit system, click on the LOGOUT button at the top of this
page. The screen shown on the next page should appear if you have
successfully logged out of thesystem.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

2. To log back into the eZ-Audit system click on the underlined link above and repeat the LOGIN
step.

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Your eZ-Audit session will automatically expire after 30 minutes of inactivity. If
you have not saved your work when the session expires, data will be lost.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
My Profile

To update your profile (i.e. username, email address, phone number, password, challenge
questions etc.), repeat the LOGIN step. This will take you to your institution’s eZ-Audit
homepage. The screen below should appear with your institution’s name and OPEID number:

1. Click on the underlined text “Update My User profile” located on the lower left
hand side of the screen. This will take you to the Update My Profile page shown
on the next page.

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This page is used to update your user profile information such as name,
email address, phone, password, challenge questions, etc.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
If you clicked on the underlined text “Update My User profile” on your institution’s homepage,
the screen below should appear:

The password must be 12-40 characters in length and must include uppercase, lowercase
letters and numeric values. Each password shall contain each of the following four types of
characters: English uppercase letters (A-Z). English lowercase letters (a-z). Westernized
Arabic numerals (0-9). Non-alphanumeric special characters (such as !,@,#,$,&,*). Clicking
the SAVE button ensures all information has been saved by the system. Please note that the
system will automatically prompt you to change your password every 90 days. Follow the
same process described above to make this change. If you require additional help, contact
the Help Desk at 1-877-263- 0780.

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Take a moment to review the information on this screen for accuracy. If
changes need to be made, update the information as necessary and enter any
missing information.
Remember to SAVE your changes!!!

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

NOTE

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Change Challenge Questions
To change your challenge questions, repeat the My Profile step, taking you to the Update My
Profile page. The screen shown below appears at the bottom of that page:

1.
2.
3.
4.
5.
6.

Select a question from the first drop down list.
Select a question from the second drop down list.
Enter your answer to the first question you have selected.
Enter your answer to the second question you have selected.
Click the SAVE button to ensure all changes are successfully captured by the system.
Click the RESET button to cancel current entries and begin again.

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June 2021

All answers are case sensitive. You will not be able to view the answers as you type
them in.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Change Password

To change your password, repeat the My Profile step to get to the Update My Profile page.
The screen shown below should appear at the midsection of that page:

1.
2.
3.
4.
5.

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June 2021

Enter your old or temporary password.
Enter your new password.
Retype your new password.
Click the SAVE button to ensure all changes are successfully captured by the system.
Click the RESET button to cancel current entries and begin again.

The password must be 8-15 characters in length and must include uppercase,
lowercase letters and numeric values. Each password shall contain each of the
following four types of characters: English uppercase letters (A-Z). English lowercase
letters (a-z). Westernized Arabic numerals (0-9). Non-alphanumeric special characters
(such as !,@,#,$,&,*). Clicking the SAVE button ensures all information has been
saved by the system. Please note that the system will automatically prompt you to
change your password every 90 days. Follow the same process described above to
make this change. If you require additional help, contact the Help Desk at 1-877-2630780.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Navigation

To move from field to field in the eZ-Audit system, simply press the Tab button on your
computer. This takes you from one field to the next.

1. To go back to a previous screen or action, simply click on the back or forward button.
2. To move across forms or sections in the system, click the underlined text of interest.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Data Edits

Edit checks will be automatically performed on each page when you click on any of the
transaction buttons such as the “SAVE or SAVE and PROCEED” buttons. If any invalid data
entries are detected, the page will redisplay with error message(s) at the top indicating the field
that needs to be corrected and the correction to be made. To continue, make the changes
indicated by the message(s) displayed and click the “SAVE or SAVE and PROCEED” buttons.
This will allow for the submission process to continue. The system will not allow you to submit to
the Department of Education without correcting the errors. See sample screens below

The eZ-Audit system does not allow punctuation marks in the fields. For example, “$”
dollar, “:”colon and “,” comma signs input into the system will result in an error
message. Also please note that all fields must be completed. Enter “0” for any null
response.

NOTE

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

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Manage Users

Types of Users and Responsibilities
1. The eZ-Audit Institution/School Administrator, selected by your school, is responsible
for:
o
o

Registering your school with eZ-Audit
Providing/managing access to data entry and submission approval
personnel, as identified by your school
o Maintaining security information regarding schools’ users as required
2. The eZ-Audit Data Entry Users, selected by your school are responsible for:
o Entering data into the eZ-Audit system
o Attaching non-editable, PDF files of audited financial statements and compliance
audits
3. The eZ-Audit Submission Approvers, selected by your school, are responsible for:
o Reviewing the submission prior to “submit”
o Approving the submission via the “submit” action

Institution Administrator Homepage

To log into the eZ-Audit system as your institution’s administrator, repeat the LOGIN step. The
screen below should appear once your administrator’s username and password has been
entered and verified by the system. This screen below is different between persons having
administrator or user’s rights:

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. The MANAGE USERS button should be displayed if you have administrator’s
rights to this system. Click on it to perform any of the manage users’ tasks
such as adding or deleting a user. The screen on the next page should appear.
2. This should read the name of your institution. Confirm that this is correct.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Creating Data Entry/Submitter Users

If you clicked on the “Manage Users” button, the screen below should appear:

1. Click on the DELETE USER button to delete a user from the system
2. Click on the ADD USER button to add a user to the system.

3. Complete all required fields providing the name and contact information for the “New User”.
4. Do not forget to specify the New User’s role (see “Manage Users” for role definition).
5. Remember to click on the “ADD USER” button to save all entries. Submitter must be
selected as a user role to access to the “Submit To ED” button.
Each registered institution’s administrator will have the capability to add or delete
NOTE
a user for their institution. When a new user is added, the user will receive 2
email notifications, one containing their username and the other containing the
user’s temporary password.
37
June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Institution Profile

Institution Profile Page/Status

This is a sample of what an institution’s profile page should look like. Institutions should
confirm that the information is correct.

1. To view the Institution Profile, click on the Institution Name:

NOTE

June 2021

Each The Institution Profile can be viewed from Home page and any submission
Page when clicked on the Institution Name.
Changes to the Institution’s Profile can only be made via the eAPP. School group listings are
also listed on this page. If there is a discrepancy with the school group listing please contact
the eZ-Audit Help Desk at1-877-263-0780.
38

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Historical Submissions

This page provides a history of the institution’s three past transactions as available in the eZ-Audit
system. You may view prior submissions at any time. Please note that you will have “read only”
access to these historical submissions.

1. To view a historical submission, click on the type of submission link.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Annual Submissions

Annual Submission Financial Statement

To complete your institution’s annual submission, complete the LOGIN step. This will take you to
your institution’s eZ-Audit homepage. On the upper left hand side of the page, you will see a
section “Create Annual Submissions”. Please check to see that the FYE on the link matches the
FYE of the submission that you wish to create. If it does not, please contact the help desk at 1877-263-0780 so that this problem can be rectified. Please note that submissions created on the
incorrect link cannot be accepted. If the link for the correct FYE appears, click on the underlined
text “Create FYE Annual Submission”, and then the screen below should appear with your
institution’s name:

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. Select YES if the institution has disbursed Title IV funds, and click on the Cancel button, Institution
homepage will be displayed.
2. Select YES, and click on the Reset button, the selection will reset.
3. Select YES, and click on the Submit button, FSA Annual Submission FINANCIAL STATEMENT
INFORMATION page will be displayed.
4. Select NO, and click on the Submit button, No Title IV Activity Submission FINANCIAL STATEMENT
INFORMATION page will be displayed.

NOTE

June 2021

If you are submitting for a school group (your financial statements cover more
than one OPEID) only one institution (OPEID) in the group should be used to
satisfy the reporting requirement for all institutions that are part of the school
group. Remember, do not use commas or other punctuation and place a “0” in
any fields with a null value.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

No Title IV Activity

No Title IV Activity Submission Financial Statement

To complete your institution’s annual submission, complete the LOGIN step. This will take you to
your institution’s eZ-Audit homepage. On the upper left-hand side of the page, you will see a
section “Create Annual Submissions”. Please check to see that the FYE on the link matches the
FYE of the submission that you wish to create. If it does not, please contact the help desk at 1877-263-0780 so that this problem can be rectified. Please note that submissions created on the
incorrect link cannot be accepted. If the link for the correct FYE appears, click on the underlined
text “Create FYE Annual Submission” and then the screen below should appear with your
institution’s name:

1. Select NO if the institution hasn’t disbursed Title IV funds, and click on the Cancel
button, Institution homepage will be displayed.
2. Select NO, and click on the Reset button, the selection will reset.
3. Select NO, and click on the Submit button, the screen below will be displayed.

NOTE

June 2021

Screens and Steps after step 3 are same as in the Annual Submission section,
except the 90/10 Revenue Attestation and Compliance Audit part. With the ‘No
Title IV Activity,’ schools are required to submit only Financial Statement.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission – Financial Statements page

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission – Financial Statements page continues:

1.
2.
3.
4.
5.
6.
7.

This should read the name of your institution and OPEID. Confirm that this is correct.
Begin date is the beginning of the audit period.
End date is the end of the audit period.
Provide a reason if your audit period is less than a year.
This is the auditor on file with the Department of Education.
If the auditor’s information is correct, no action is required. If incorrect or blank, select No.
This field should be pre-populated. Please enter the auditor’s Tax Identification Number (TIN) if
this information is incorrect or missing. DO NOT USE HYPHENS.
8. Please select appropriate opinion type from the drop-down list based on your auditor’s
opinion. This information is presented in the opinion paragraph of the Independent
Auditor’s Report.
If the opinion paragraph states that the financial statements “present fairly, in all
material respects”, the type of opinion should be “Unqualified”.
9. Please indicate “yes” or “no” if your institution’s submission contains a going concern
explanatory paragraph included in either the independent auditor’s report or if a going
concern has been disclosed in the notes to the financial statements.
10. Choose “yes” or “no” if the Financial Statements are presented with the Supplemental
Schedule according to the new format per Borrower Defense Regulations.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
If “Yes” is chosen for the financial statements according to the new format per
Borrower Defense Regulations, the following links will appear:
11. Primary Reserve Ratio – (see section on completing the Primary Reserve Ratio
Page).
12. Equity Ratio – (see section on completing the Equity Ratio Page).
13. Net Income Ratio – (see section on completing the Net Income Ratio Page).
If “No” is chosen for the financial statements according to the new format per Borrower
Defense Regulations, you the following links will appear:
15. Balance Sheet – (see section on completing the Balance Sheet).
16. Income Statement – (see section on completing the Income Statement).
17. 90/10 Revenue Calculation Attestation. For this section, please click on the 90/10 Revenue
Calculation Attestation calculation link “OPEID of the school” and complete the fields requested.
(see section on completing the 90/10 Revenue Calculation Attestation).
18. Click the CANCEL button to make changes to all entries.
19. Click the SAVE button to ensure all entries are successfully stored by the system on this page.
20. Click the SAVE and PROCEED button to go to the Program and Audit Information page.
This is the next stage in the submission process.

NOTE

June 2021

Do not leave any field blank.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Primary Reserve Ratio
If you clicked on the underlined text “Primary Reserve Ratio” on the Financial Statements page,
the screen below should appear. This page can also be reached by repeating the LOGIN step.
This will take you to your institution’s eZ- Audit homepage. On the upper left hand side of the
page, you will see a section “Create Annual Submissions”. Click on the underlined text
“Financial Statements”, and then choose “Yes” for question #5 (according to Borrower Defense
Schedule), and then click on the underlined text “Primary Reserve Ratio” on the lower part of the
page. The screen below should appear:

NOTE

All data entered on this page should come directly from the financial responsibility
supplemental schedule, balance sheet and/or notes that will be attached with your
submission. Remember, do not use commas or other punctuation and place a “0” in any
fields with a null value. Because the system times out every 30 minutes, it is advisable to
print these screens out in advance and prepare your answers on paper, then when you
return to the system, you simply have to type in the figures.
Alternatively, click “Save” at the base of this page if you need more time. While this will
return error messages if the work is not complete, it will save your work and restart the 30
minute clock.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Please review the final regulations that were published on September 23, 2019
(https://fsapartners.ed.gov/knowledge-center/library/federal-registers/2019-0923/final-regulation-borrower-defense-repayment) that in part establish new Financial
Responsibility requirements for requirements for the elements of the composite score.
Also please review the Electronic Announcement posted on April 9, 2020
(https://fsapartners.ed.gov/knowledge-center/library/electronicannouncements/2020-04-09/financial-responsibility-and-ez-audit-reportingrequirements-updated-8202020)for additionalguidance on the new Financial
Responsibility requirements.
The Department intends to supplement the above Electric Announcement with Q&A’s on
other Financial Responsibility issues, as needed, please review the Knowledge Center
website (https://fsapartners.ed.gov)for additional guidance.
Primary Reserve Ratio Information
1. Total Equity- this should be taken directly from the balance sheet.
2. Secure and Unsecured related party receivables and/or other related party assets -

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

This should be the total of related party assets included in assets on the balance sheet.
This number is not used to compute your composite score, it is just the total amount

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

3.
4.
5.

6.
7.
8.
9.
10.
11.
12.
13.

14.
15.

16.
17.
18.
19.
20.
21.
22.
23.

disclosed in the financial statements and notes to ensure that all related party amounts
have been identified in the financial statements. See 34 C.F.R.§ 668.23(d). Only the
amounts included in lines 3 and 4 are used for the related party adjustment in the
composite score.
. Include all Unsecured related party receivables on the balance sheet
Include all other unsecured related party assets on the balance sheet
Property, plant and equipment, net - including construction in progress and capital
leases (Combine lines 6 through line 9) This number is not used to compute your
composite score, it is just used to reconcile that all property, plant and equipment is
included in lines 6 – 9.
Property, plant and equipment, net - pre-implementation less any construction in
progress
Property, plant and equipment, net - post-implementation less any construction in
progress with outstanding debt for original purchase
Property, plant and equipment, net - post-implementation less any construction in
progress without outstanding debt for original purchase
Construction in progress
Lease right-of use asset (Combine line 11 and line 12) - This number is not used to
compute your composite score as it is just used to reconcile that lease right of use assets
are included in lines 11 and 12.
Lease right-of use asset - pre-implementation -This should be lease agreements that
were entered into prior to December 15, 2018 that have not been modified.
Lease right-of use asset - post-implementation -This should be agreements that were
entered into on or after December 15, 2018 or agreements that were modified on or after
December 15, 2018.
This should include all intangible assets on the balance sheet. For example, purchased
intangibles including patents, franchises, copyrights, trademarks, brand names,
covenants not to compete, accreditation costs, program development costs; and any
advertising costs not resulting from direct response advertising.
Post-employment and defined pension plan liabilities
Long-term debt - for long-term purposes and Construction in Process debt - This
should be the total all long-term debt- for long-term purposes including the current part of
that debt and any construction in process debt. The total should be equal to or greater
than the total of lines 16 – 18. This number is not used in the composite score it is just to
reconcile long-term debt to the financial statements as not all long-term debt qualifies for
the composite score adjustment.
Long-term debt for long-term purposes pre-implementation
Qualified Long–term debt for long-term purposes post-implementation for purchase of
Property, Plant and Equipment
Line of Credit for Construction in progress
Lease right-of-use asset liability (Combine line 20 and line 21) -This number is not
used in the composite score it is just to reconcile lease right-of-use asset liabilities. The
total should equal lines 20 and 21.
Pre-Implementation right-of-use leases liabilities -This would be leases that were entered
into prior to December 15, 2018 that have not been modified.
Post-Implementation right-of-use leases liabilities -This would be leases that were entered
into on or after December 15, 2018 or leases that have been modified.
Total Operating Expenses and Losses:
Total Non-Operating Expenses and Losses

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
24.
25.
26.
27.
28.

Comprehensive Losses
Discontinued Operations not classified as an operating expense
Change in accounting principle
Investment losses
Post-employment and defined pension plans losses less nonservice component of net
periodic pension and other post-employment plan expenses

Primary Reserve Ratio Information Continues:
29. Click the CANCEL button to erase all entries
30. Click the SAVE button for eZ-Audit to save the entries
31. Click the SAVE and PROCEED button to save all entries and then take you the Income
Statement page.

Equity Ratio
If you clicked on the underlined text “Equity Ratio” on the Financial Statements page, the screen
below should appear. This page can also be reached by repeating the LOGIN step. This will
take you to your institution’s eZ- Audit homepage. On the upper left hand side of the page, you
will see a section “Create Annual Submissions”. Click on the underlined text “Financial
Statements”, and then choose “Yes” for question #5 (according to Borrower Defense Schedule),
and then click on the underlined text “Equity Ratio” on the lower part of the page. The screen
below should appear:

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Equity Ratio Information
32. Total Assets.
33. Click the CANCEL button to erase all entries
34. Click the SAVE button for eZ-Audit to save the entries
35. Click the SAVE and PROCEED button to save all entries and then take you the Income Statement
page.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Net Income Ratio
If you clicked on the underlined text “Net Income Ratio” on the Financial Statements page, the
screen below should appear. This page can also be reached by repeating the LOGIN step. This
will take you to your institution’s eZ- Audit homepage. On the upper left hand side of the page,
you will see a section “Create Annual Submissions”. Click on the underlined text “Financial
Statements” and then choose “Yes” for question #5 (according to Borrower Defense Schedule),

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
and then click on the underlined text “Net Income Ratio” on the lower part of the page. The
screen below should appear:

Net Income Ratio Information
36. Net Income before income taxes (loss)
37. Net Comprehensive income (loss)
38. Total Operating Revenues and Gains
39. Total Other Revenue and Gains
40. Comprehensive Income and Gains
41. Discontinued Operations not classified as an operating Gain
42. Change in Accounting Principle Gains
43.Click the CANCEL button to erase all entries
44. Click the SAVE button for eZ-Audit to save the entries
45. Click the SAVE and PROCEED button to save all entries and then take you the Income Statement
page.

Balance Sheet

If you clicked on the underlined text “Balance Sheet” on the Financial Statements page, the
screen below should appear. This page can also be reached by repeating the LOGIN step. This
will take you to your institution’s eZ- Audit homepage. On the upper left hand side of the page,
you will see a section “Create Annual Submissions”. Click on the underlined text “Financial
Statements” and then click on the underlined text “Balance Sheet” on the lower part of the page.
The screen below should appear:

NOTE

All data entered on this page should come directly from the balance sheet and/or notes that
will be attached with your submission. Remember, do not use commas or other punctuation
and place a “0” in any fields with a null value. Because the system times out every 30
minutes, it is advisable to print these screens out in advance and prepare your answers on
paper, then when you return to the system, you simply have to type in the figures.
Alternatively, click “Save” at the base of this page if you need more time. While this will
return error messages if the work is not complete, it will save your work and start the 30
minute clock again.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Balance Sheet Information Continues:
1. All amounts due from management employee borrowings from the institution or employee
advances. See SFAC NO 6.
2. All amounts due from related parties [owners, shareholders and affiliates] on account in
the form of promissory notes that are not collateralized or subject to a security
agreement. See SFAC NO 6 & SFAS 57.
3. All amounts due from related parties [owners, shareholders and affiliates] on account in
the form of promissory notes that are not collateralized or subject to a security
agreement. See SFAC NO 6 & SFAS 57.
4. All amounts on account in the form of promissory notes not included in line items 2
and 3 above. See SFAC NO 6
5. Total of All Related Party Assets (both secured and unsecured)
6. Property, Plant and Equipment including capitalized leases net of accumulated depreciation.
7. Construction in Progress.
8. Pre-Implementation right-of-use-assets
9. Post-Implementation right-of-use-assets
10. All purchased intangibles including patents, franchises, copyrights, trademarks, brand
names, covenants not to compete, accreditation costs, program development costs; and,
any advertising costs not resulting from direct response advertising. See APB 17 & SFAS
142.
11. The excess of costs over the market [fair] value of specific assets acquired in a business
combination. See APB 17 & SFAS 142.
12. Please enter Total Assets. Check this total against the information on your PDF. Your
submission will not be accepted if this total does not match the attached PDF.
13. Portion of debt used for long-term purposes maturing during the next fiscal year plus
amounts owed due to lines of credit with banks. See SFAS NO. 6.
Portion of the net present value of minimum lease payments maturing during the next
fiscal year. See SFAS NO. 13/98.
14. All formal debt instruments and any other debt instruments used for long-term purposes. See
SFAS 47.
15. Net present value of minimum lease payments not maturing during the next fiscal year. See
SFAS 13/98.
16. Pre-Implementation right-of-use-liabilities
17. Post-Implementation right-of-use-liabilities
18. All amounts owned on plans that pay employees or their beneficiaries for post
reemployment or post retirement benefits other than pensions; must be shown on face of
the balance sheet. SFAS 106, 112 and 132.
19. Please enter Total Liabilities. Check this total against the information on your PDF.
Your submission will not be accepted if this total does not match the attached PDF.
20. Click the CANCEL button to erase all entries
21. Click the SAVE button for eZ-Audit to save the entries
22. Click the SAVE and PROCEED button to save all entries and then take you the Income
Statement page.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Income Statement

If you clicked on the underlined text “Income statement” from the Financial Statements page, the
screen below should appear. This page can also be reached by repeating the LOGIN step. This
will take you to your institution’s eZ-Audit homepage. On the upper left hand side of the page, you
will see a section “Create Annual Submissions”. Click on the underlined text “Financial
Statements”, and then click on the underlined text “Income Statement” on the lower part of the
page. The screen below should appear:

1
2
33

Income Statement Information
1.
2.
3.
4.
5.

Sum of Total revenues.
Total of all expenses.
Click the CANCEL button to erase all entries
Click the SAVE button for eZ-Audit to save the entries
Click the SAVE and PROCEED button to save all entries and then take you back
to the Financial Statement page.

90/10 Revenue Calculation Attestation

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
90/10 Revenue Calculation Attestation Continues:
1. Numerator (Adjusted Student Title IV Revenue)
Student Non-Title Revenue
2. Grant funds for the student from non-Federal public agencies or private source independent of
the school
3. Funds provided for the student under a contractual arrangement with a Federal, State, or local
government agency for the purpose of providing job training to low-income individuals
4. Funds used by a student from savings plans for educational expenses established by or on
behalf of the student that qualify for special tax treatment under the internal Revenue Code
5. School Scholarships disbursed to the student
6. Student payments on current charges
7. Student Non-Title IV Revenue -Calculated by system (Combination of Lines 2 thru 6)
Revenue from Other Sources (Totals for the Fiscal Year)
8. Activities conducted by the institution that are necessary for education and training
9. Funds paid to the institution by, or on behalf of, students for education and training in qualified
non- Title IV eligible programs
10. Revenue from Other Sources- Calculated by System (Combination of Lines 8 thru 10)
11. Denominator- Calculated by System (Adjusted Student Title IV Revenue (Numerator)+Student
Non-Title IV Revenue + Revenue from Other Sources)
12. 90/10 Percentage- Calculated by System (Numerator/Denominator)
13. Click the CALCULATE ALL button to calculate, amounts in Line 7 and 11, and the 90/10
percentage in Line 13
14. Click the DONE button to save all entries and then take you back to the Financial Statement
15. Click the SAVE button for eZ-Audit to save the entries

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission Compliance Audit Information
If you successfully entered or saved the information inputted on the Financial Statements page
by clicking on the SAVE and PROCEED button, the screen below should appear. This page can
also be reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit
homepage. On the upper left hand side of the page, you will see a section “Create Annual
Submissions”. Please check to see that the FYE on the link matches the FYE of the submission
that you wish to create. If it does not, please contact the help desk at 1-877-263-0780 so that
this problem can be resolved. Please note that submissions created on an incorrect link cannot
be accepted. If the link for the correct FYE appears, click on the underlined text “Create FYE
Annual Submission”, and then click on the underlined text “Program and Audit Info”. The screen
below should appear:

NOTE

June 2021

If you are submitting for a school group (i.e. you are the submitting institution for
multiple schools), please complete a Compliance Audit Information page for each
school in the group. Click on the name of the school to access the appropriate
Compliance Audit Information Page.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.

Compliance Audit Information Continues:
This should read your institution’s name and OPE ID number. Confirm that this is correct.
Please indicate period audited in specified format.
Begin date is the beginning of the audit period.
End date is the end of the audit period.
Provide a reason if your audit period is less than a year.
This is the auditor on file with the Department of Education. If the auditor’s
information is correct, no action is required. If incorrect, click NO.
Enter audit firm’s TIN (Tax Identification Number). DO NOT USE HYPHENS.
Indicate whether your audit contains any findings related to Title IV.
Select appropriate opinion from the drop down list based on your auditor’s opinion.
This information is contained within the Report on Compliance with Specified
Requirements Applicable to SFA Programs.
Click the CANCEL button to make changes to all entries.
Click the SAVE button to ensure all entries are successfully stored by the system for
this page. To complete Compliance Audit Information page for member
school(s), click on the name of the school. Complete the Compliance Audit
Information page following the stepsabove.
Click the SAVE and PROCEED button to go to the FSA Annual SubmissionCompleteness Checklist page. This is the next stage in the submission process. If you
are a school group this will take you to the Checklist page for the school you have
selected.

School Group Submissions:



To complete the Compliance Audit Information page for member school(s), click
on the name of the school.
Complete the Compliance Audit Information page following the steps above.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission Completeness Checklist

If you successfully entered or saved the information inputted on the Compliance Audit
Information page by clicking on the SAVE AND PROCEED button, the screen below should
appear. This page can also be reached by repeating the LOGIN step. This will take you to your
institution’s eZ-Audit homepage. On the upper left hand side of the page, you will see a section
“Create Annual Submissions”. Please check to see that the FYE on the link matches the FYE
of the submission that you wish to create. If it does not, please contact the help desk at 1- 877263-0780 so that this problem can be rectified. Please note that submissions created on the
incorrect link cannot be accepted. If the link for the correct FYE appears, click on the underlined
text “Create FYE Annual Submission”, and then click on the underlined text “Completeness
Checklist”. The screen below should appear:

NOTE

June 2021

If you are submitting for a school group (i.e. you are the submitting institution for
multiple schools), please complete Checklist page for each school in the group.
Click on the name of the school to access the appropriate Checklist page.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. This should read your institution’s name and OPE ID number. Confirm that this is correct.
2. Ensure all applicable documents are included with your submission.
3. Provide contact information (name, phone, email) for who should be contacted
regarding the submission and/or additional notes as necessary. Please feel free to
attach any additional document(s). If you do attach these additional documents, please
write a note in this field advising that you have attached additional information not
required in this process.
4. IMPORTANT WARNING: Click the CANCEL button to erase/delete all entries since
the last time you saved your work.
5. Click the SAVE button to save all entries currently on screen. To complete the
Checklist page for member school(s), click on the name of the school.
Complete the Checklist page following the steps above.
6. Click the SAVE and PROCEED button to save all entries and to take you to the
Upload Attachment page. If you are a school group this will take you to the
Upload page for the school you have selected.
Change in Equity documentation may be included as part of the Income
Statement, or may be included as a separate document. Consolidated
Statements will only be included with the submission if the financial
statements reflect totals.

NOTE

School Group Submissions:



To complete the Checklist page for member school(s), click on the name of theschool.
Complete the Checklist page following the steps above.

NOTE

June 2021

Independent Auditors Report on Financial Statements, Report on Compliance and
Internal Controls Over Financial Reporting Based on an Audit of Financial
Statements Performed in Accordance with Government Auditing Standards, Report
on Internal Control Over Compliance, Report on Compliance with Specified
Requirements Applicable to FSA Programs must be prepared and presented on
auditor letterhead. Signatures (scanned) are required on Independent Auditors
Report on Financial Statements, Report on Compliance and Internal Controls Over
Financial Reporting Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards, Report on Internal Control Over
Compliance, Report on Compliance with Specified Requirements Applicable to
FSA Programs. Signatures created using a word processing application are not
acceptable.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission Upload Attachments

If you successfully entered or saved the information inputted on the Completeness Checklist
page by clicking on the SAVE and PROCEED button, the screen below should appear. This
page can also be reached by repeating the LOGIN step. This will take you to your institution’s
eZ-Audit homepage. On the upper left hand side of the page, you will see a section “Create
Annual Submissions”. Please check to see that the FYE on the link matches the FYE of the
submission that you wish to create. If it does not, please contact the help desk at 1-877-2630780 so that this problem can be rectified. Please note that submissions created on the incorrect
link cannot be accepted. If the link for the correct FYE appears, click on the underlined text
“Create FYE
Ann
ual Submission”,
and then click on the underlined text “Upload Attachments”. The screen below should appear:

3
4

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. This should read the name of your institution and OPE ID number. Confirm that this is correct.
2. Click on the Choose File button to search for document(s) to be attached. Then follow
instructions searching and attaching document(s).

3. Check all appropriate documents attached are in English and do not contain

any Personally Identified Information (PII). To view what is included in PII
please hover the mouse over the word PII.

4.
5.
6.
7.

(Please note: When uploading another document, please deselect the previous upload
type and then reselect the document type.)
After the document(s) has been attached and the file type identified by checking the box,
click the “ADD” button to ensure that the document(s) has been successfully attached to
your compliance audit submission.
Click the CANCEL button to erase all entries.
Click the SAVE button to save all entries currently on screen. To Upload the
Compliance Audit and/or Corrective Action Plan for member school(s), click on
the name of the school. Follow steps above.
Click the SAVE and PROCEED button to take you to the FSA Annual submission-submit page.

School Group Submissions:
To Upload the Compliance Audit and/or Corrective Action Plan for member
school(s), click on the name of the school.
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools


Follow the steps above.

NOTE

June 2021

As part of your annual submission, you must include an electronic copy
of your audited financial statements and compliance audit. Please note
that all files must be in a non- editable PDF format and no personal
information such as Social Security Numbers should be contained in
attachments. Remember, you can attach additional information not
required during this process. If you do attach additional information,
please make a note in the “Notes” field on the Completeness Checklist
page

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
FSA Annual Submission-Submit

If you successfully entered, saved and attached an electronic copy of your submissions by
clicking on the SAVE and PROCEED button, the screen below should appear. This page can
also be reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit
homepage. On the upper left hand side of the page, you will see a section “Create Annual
Submissions”. Please check to see that the FYE on the link matches the FYE of the submission
that you wish to create. If it does not, please contact the help desk at 1-877-263-0780 so that this
problem can be rectified. Please note that submissions created on the incorrect link cannot be
accepted. If the link for the correct FYE appears, click on the underlined text “Create FYE Annual
Submission”, and then click on the underlined text “Submits”. The screen below should appear:

1. This should read the name of your institution and OPE ID number. Confirm that this is correct.
2. Read to understand and attest that you have met all requirements.
3. Click on the SUBMIT TO ED button to complete your Public Annual Submission
process. This will then take you to your institution’s homepage with a displayed
confirmation of your submission. If you do not have the SUBMIT TO ED button
please verify that “submitter” is selected as a user role. See Manage Users for
details.
4. The following confirmation of receipt will be displayed on your home page.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

NOTE

June 2021

You will have “read” access only once submitted. Please note that only the
financial statements and audit sections for the period audited should be
completed and must be attached.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
If you are submitting for a school group the following screen on the next page will appear.
FSA Annual Submission-Submit continued:

1. To submit for all schools in the group click Select All.
2. Click the Submit indicator to submit for individual schools.
3. Click on the “SUBMIT TO ED” button to complete your FSA Annual Submission process.
This will then take you to your institution’s homepage with a displayed confirmation of your
audit submission(s). If you do not see the “Submit To ED” button, please verify that
submitter is selected as a user role.

NOTE
June 2021

You will have “read” access only once submitted.
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Merger/Change in Ownership

Merger/Change in Ownership Submission Financial Statement

To complete a Change in Ownership Submission, complete the LOGIN step. This will take you to
your institution’s eZ-Audit homepage. On the upper left-hand side of the page, you will see a section
“Other Submissions”. Click on the underlined text “Create Merger/Change in Ownership
Submission”, and then the screen below should appear:
If your fiscal year end changes as a result of the change in ownership, please
NOTE
submit a Change in FY end submission.

STOP

1.
2.
3.
4.
5.
6.
7.

This should read your institution’s name and OPEID number. Confirm that this is correct.
Date of the Day One balance sheet.
Provide reason. Enter “Change In Ownership”.
Enter contact information and any additional notes that will assist in processing this submission.
Click on Balance Sheet- (see section on completing the Balance Sheet
Click the CANCEL button to make changes to all entries.
Click the SAVE button to ensure all entries currently on the screen are successfully stored by the
system.
8. Click the SAVE and PROCEED button to go to the Upload Attachments page. This is
the next stage in the submission process.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Balance Sheet

10
11
1. Cash on hand, demand deposits in banks and other accounts characteristic of demand
deposits that may be withdrawn without prior notice or substantial penalty. See SFAC NO.6
& FASB Technical Bulletin No. 81-4.
2. Net realizable value of accounts receivables. Equals gross accounts receivable less
the allowance for doubtful accounts. See SFAC No. 6.
3. Marketable debt securities classified either as held-to-maturity, trading or available-forsale, and included in current assets. See SFAC No. 6 & SFAS 115.
4. All amounts due from related parties (owners, shareholders, and affiliates) on
account that are not collateralized or subject to a security agreement. See SFAC
No. 6.
5. The sum of all current liabilities.
6. The sum of all assets.
7. The sum of all purchased intangibles including patents, franchises, copyrights, trademarks,
brand names, covenants not to compete, accreditation costs, program development costs,
and any advertising costs not resulting from direct response advertising. Plus net goodwill.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
8.
9.
10.
11.

The sum of all liabilities.
Click the CANCEL button to make changes to all entries.
Click the SAVE button to ensure all entries are successfully stored by the system on this page.
Click the SAVE and PROCEED button to go to the Completeness Checklist. This is the
next stage in the submission process.

NOTE

June 2021

With a Merger/Change in Ownership, schools are required to complete the
Balance Sheet only. Remember, do not use commas or other punctuation and
place a “0” in any fields with a null value

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Merger/Change in Ownership Submission Upload Attachments
If you successfully entered or saved the information inputted on the Create Merger/Change in
Ownership Submission-Financial Statements page by clicking on the SAVE and PROCEED
button, the screen below should appear. This page can also be reached by repeating the LOGIN
step. This will take you to your institution’s eZ- Audit homepage. On the upper left hand side of
the page, you will see a section “Other Submissions”. Click on the underlined text “Create
Merger/Change in Ownership Submission”, and then click on the underlined text “Upload
Attachments”. The screen below should appear:

1. This should read the name of your institution and OPEID number. Confirm that this is correct.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
2. Read and follow instructions accordingly. If you do not have all of the required
documents, please contact your School Participation team representative or the help
desk to discuss this matter. Add any notes regarding these issues to financial statements
screen as shown on the previous page.
3. Click on the Choose File button to search for document(s) to be attached. Then follow
instructions on the next page on searching for and attaching document(s).

5.
6.
7.
8.

Check all appropriate documents attached are in English and do not contain any Personally
Identified Information (PII). To view what is included in PII please hover the mouse over the word PII.
(Please note: When uploading another document, please deselect the previous upload type and then
reselect the document type.)
After the document has been selected and the file type identified by checking the box, click the
“ADD” button to ensure that the document has been successfully attached to your compliance audit
submission.
Click the CANCEL button to make changes to all entries.
Click the SAVE button to ensure all entries are successfully stored by the system on this page.
Click the SAVE and PROCEED button to save all entries and to take you to the Merger/Change in
Ownership Submission page. This is the next stage in the submission process.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
NOTE

June 2021

Please note that all files must be in a non-editable PDF format and no
personal information such as Social Security Numbers should be
contained in attachments.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Merger/Change in Ownership Submission-Submit

If you successfully entered, saved and attached an electronic copy of your complete audited
financial statements by clicking on the SAVE and PROCEED button, the screen below should
appear. This page can also be reached by repeating the LOGIN step. This will take you to your
institution’s eZ-Audit homepage. On the upper left hand side of the page, you will see a section
“Other Submissions”. Click on the underlined text “Merger/Change in Ownership”, and then click
on the underlined text “Submit”. The screen below should appear:

1. This should read the name of your institution and OPE ID number. Confirm that this is correct.
2. Read to understand and attest that you have met all requirements.
3. Click on the “SUBMIT TO ED” button to complete your submission process. This will
then take you to your institution’s homepage with a displayed confirmation of your audit
submission. If you do not have the “Submit To ED” button, please verify that submitter
is selected as user role. See Manage Users in the eZ-Audit Step-by-Step guide by
clicking on the Help button.
4. The following confirmation of receipt will be displayed on your home page.

NOTE
June 2021

You will have “read” access only once submitted. Please note that only the
financial statements and audit sections for the period audited should be
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Change in FY End

Change in Fiscal Year End Submission

This page can be reached by repeating the LOGIN step. This will take you to your
institutions eZ-Audit homepage. On the upper left hand side of the page, you will see
a section “Other Submissions”. Click on the underlined text “Change Fiscal Year End
Date”. The screen below should appear:

1.
2.
3.
4.

This should read the name of your institution and OPE ID number. Confirm that this is correct.
This represents information on file with ED concerning current fiscal year.
Click on the drop down list to change month as desired.
Click on the “SUBMIT TO ED” button to ensure that date change is captured by the eZ-Audit
system.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
When notifying ED of a change in fiscal year end, please submit change 90
days prior to your current fiscal year end date. Contact your School
Participation Team Representative for information regarding additional
submission requirements. Please
note that this submission will not successfully change the link available for your annual
submission unless there has been an actual change in fiscal year end. If the incorrect
submission link is available and there has been no change in FYE, please contact the help
desk.

NOTE

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Waiver
Create Waiver Request

This page can be reached by repeating the LOGIN step. This will take you to your institution’s
eZ-Audit homepage. On the upper left hand side of the page, you will see a section “Other
Submissions”. Click on the underlined text “Other Submissions” and then click on the
underlined text “Create Waiver/Exemption Request”. The screen below should appear:

1. This should read the name of your institution and OPEID number. Confirm that this is correct.
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2. Click on the Choose File button to search for document(s) to be attached. Then follow
instructions on the next page on searching for and attaching document(s).

3. click the “ADD” button to ensure that the document(s) has been successfully
attached. The screen will then change to the screen on the next page. Please note
that documents being added to this request should be on letterhead and signed.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

4. Select the Fiscal Year End date from the drop down menu for which you are requesting a waiver.
5. Click the CANCEL button to erase all entries.
6. Click the “SUBMIT TO ED” button to submit your Waiver Request. This will then
take you to your institution’s homepage with a displayed confirmation of your
transaction.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Closeout Audit Submission

Closeout Audit Compliance Audit Information

This page can also be reached by repeating the LOGIN step. This will take you to your
institution’s eZ-Audit homepage. On the upper left hand side of the page, you will see a section
“Other Submission”. Click on the underlined text “Closeout Audit Submission”, and then click
on the underlined text “Compliance Audit Info”. The screen below should appear:

STOP

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.

This should read your institution’s name and OPE ID number. Confirm that this is correct.
Please indicate period audited in specified format.
Begin date is the beginning of the audit period.
End date is the end of the audit period.
Provide a reason if your audit period is less than a year.
This is the auditor on file with the Department of Education. If the auditor’s
information is correct, no action is required. If incorrect, click NO.
Enter audit firm’s TIN (Tax Identification Number). DO NOT USE HYPHENS.
Indicate whether your audit contains any findings.
Select appropriate opinion from the drop down list based on your auditor’s opinion.
This information is contained within the Report on Compliancewith Specified
Requirements Applicable to SFA Programs.
Click the CANCEL button to make changes to all entries.
Click the SAVE button to ensure all entries are successfully stored by the system for
this page. To complete Compliance Audit Information page for member
school(s), click on the name of the school. Complete the Compliance Audit
Information page following the stepsabove.
Click the SAVE and PROCEED button to go to the FSA Annual SubmissionCompleteness Checklist page. This is the next stage in the submission process. If you
are a school group this will take you to the Checklist page for the school you have
selected.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Closeout Audit Submission Completeness Checklist

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1. This should read your institution’s name and OPEID number. Confirm that this is correct.
2. Ensure all applicable documents are included with your submission
3. Enter contact information. Provide additional notes as necessary. Please feel free
to attach any additional document(s). If you do attach these additional documents,
please write a note in this field advising that you have attached additional
information not required in this process.
4. Click the CANCEL button to erase all entries.
5. Click the SAVE button to save all entries currently on screen.
6. Click the SAVE and PROCEED button to take you to the Upload Attachment page

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Closeout Audit Submission Upload Attachments

1. This should read the name of your institution and OPEID number. Confirm that this is correct.
2. Click on the Browse button to search for document(s) to be attached. Then follow
instructions on the next page on searching and attaching document(s).

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

1. Check all appropriate documents attached are in English and do not contain any Personally
Identified Information (PII). To view what is included in PII please hover the mouse over the word
PII.
(Please note: When uploading another document, please deselect the previous upload type and
then reselect the document type.)
2. After the document has been selected and the file type identified by checking the box, click the
“ADD” button to ensure that the document has been successfully attached to your submission.
3. Click the CANCEL button to erase all entries.
4. Click the SAVE button to save all entries currently on the screen.
5. Click the SAVE and PROCEED button to take you to the Closeout Audit Submission-submit
page.
NOTE

June 2021

As part of your stub audit submission, you must include an electronic copy
of your audit and/or complete audited financial statements. Please note
that all files must be in a non-editable. PDF format and no personal
information such as Social Security Numbers should be contained in
attachments. Remember, you can attach additional information not
required during this process. If you do attach additional information, please
make a note in the “Notes” field on the Completeness Checklist page.
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Closeout Audit Submission-Submit

If you successfully entered, saved and attached an electronic copy of your submission by clicking
on the SAVE and PROCEED button, the screen below should appear. This page can also be
reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit homepage.
On the upper left hand side of the page, you will see a section “Other Submissions”. Click on the
underlined text “Closeout Audit Submission”, and then click on the underlined text “Submit”. The
screen below should appear:

1. This should read the name of your institution and OPE ID number. Confirm that this is correct.
2. Read to understand and attest that you have met all requirements.
3. Click on the SUBMIT TO ED button to complete your FSA Annual Submission process.
This will then take you to your institution’s homepage with a displayed confirmation of
your audit submission.
4. The following confirmation of receipt will be displayed on your home page.

NOTE
June 2021

You will have “read” access only once submitted.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

New Institution/Reinstatement Submission

New Institution/Reinstatement Submission Financial Statement

To submit your institution’s New Institution/Reinstatement Submission audit, complete the
LOGIN step. This will take you to your institution’s eZ-Audit homepage. On the upper left-hand
side of the page, you will see a section “Other Submissions”. Click on the underlined text
“Create New Institution Submission” (for institutions that have not previously participated in Title
IV programs) or “Create Reinstatement Submission” (for institutions that have previously
participated in Title IV programs), and then the screen below should appear with your
institution’s name:

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Create New Institution/Reinstatement Submission – Financial Statement Continues:
Financial Statements Information Page should be completed using the current completed
fiscal year end financial statements data.
1. This should read your institutions name and OPEID number. Confirm that this is correct.
2. Enter Fiscal Year End 1(MM/DD/YYYY).
3. Fiscal Year End 2 will auto be populated to exactly one year from the
entered Fiscal Year End 1 (MM/DD/YYYY)
4. Begin date is the beginning of the audit period.
5. End date will be audit populated with Fiscal Year End 1, which is the end of the audit
period.
6. Provide a reason if your audit period is less than a year.
7. Enter Audit Firm’s TIN.
8. Please select appropriate opinion type from the drop-down lists based on your auditor’s
opinion. This information is presented in the opinion paragraph of the Independent
Auditor’s Report. If the opinion paragraph states that the financial statements “present
fairly, in all material respects”, the type of opinion should be “Unqualified”.
9. Please indicate “yes” or “no” if your institutions’ submission contains a going concern
explanatory paragraph included in either the independent auditor’s report or if a going
concern has been disclosed in the notes to the financial statements.
10. Choose “yes” or “no” if the Financial Statements are presented with the Supplemental
Schedule according to the new format per Borrower Defense Regulations.
If “No” is chosen for the financial statements according to the new format per Borrower
Defense Regulations, you the following links will appear:
11. Balance Sheet – (see section on completing the Balance Sheet).
12. Income Statement – (see section on completing the Income Statement).
13. If “Yes” is chosen for the financial statements according to the new format per Borrower
Defense Regulations, the following links will appear:
14. Primary Reserve Ratio – (see section on completing the Primary Reserve Ratio
Page).
15. Equity Ratio – (see section on completing the Equity Ratio Page).
16. Net Income Ratio – (see section on completing the Net Income Ratio Page).
11. Click the CANCEL button to make changes to all entries.
12. Click the SAVE button to ensure all entries are successfully stored by the system on this page.
13. Click the SAVE and PROCEED button to go to the Completeness Checklist. This is the
next stage in the submission process.

Balance Sheet

See “Balance Sheet” on the Financial Statements page under Annual Submissions for details
in completing all data fields. Please complete using current completed fiscal yearend financial
statements data.

Income Statement

See “Income Statement” on the Financial Statements page under Annual Submissions for details
in completing all data fields. Please complete using current completed fiscal yearend financial
statements data.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
NOTE

The Balance Sheet, Income Statement and Cash Flow Statement must be
completed.

Primary Reserve Ratio

See “Primary Reserve Ratio” on the Financial Statements page under Annual Submissions for
details in completing all data fields. Please complete using current completed fiscal yearend
financial statements data.

Equity Ratio

See “Equity Ratio” on the Financial Statements page under Annual Submissions for details in
completing all data fields. Please complete using current completed fiscal yearend financial
statements data.

Net Income Ratio

See “Net Income Ratio” on the Financial Statements page under Annual Submissions for details
in completing all data fields. Please complete using current completed fiscal yearend financial
statements data.

NOTE

June 2021

The Primary Reserve Ratio Page, Equity Ratio Page and Net Income Ratio
Page must be completed.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
New Institution/Reinstatement Submission Completeness Checklist
If you successfully entered or saved the information inputted on the Income Statement page by
clicking on the SAVE AND PROCEED button, the screen below should appear. This page can
also be reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit
homepage. On the upper left hand side of the page, you will see a section “Other Submissions”.
Click on the underlined text “New Institution Submission” or “Reinstatement Submission” and then
click on the underlined text “Completeness Checklist”. The screen below should appear:

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

1
2

STOP

5
4

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Completeness Checklist Continued
1. This should read your institution’s name and OPEID number. Confirm that this is correct.
2. Ensure all applicable documents are included with your submission.
3. Enter Contact Information. Provide additional notes as necessary. Please feel free
to attach any additional document(s). If you do attach these additional documents,
please write a note in this field advising that you have attached additional
information not required in this process.
4. Click the CANCEL button to erase all entries.
5. Click the SAVE button to save all entries currently on screen.
6. Click the SAVE and PROCEED button to save all entries and to take you to the Upload
Attachment
page.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
New Institution/Reinstatement Submission Upload Attachments

1. This should read the name of your institution and OPE ID number. Confirm that this is correct.

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
2. Click on the Browse button to search for document(s) to be attached. Then follow
instructions on the next page on searching and attaching document(s).
Audited Financial statements for the previous two fiscal years should be
submitted.

NOTE

3. Check all appropriate documents attached After the document has been selected
and the file type identified by checking the box, click the “ADD” button to ensure that the
document has been successfully attached to your compliance audit submission.
4. Click the CANCEL button to erase all entries.
5. Click the SAVE button to save all entries currently on the screen.
6. Click the SAVE and PROCEED button to take you to the New Institution Submission-submit
page.

NOTE
June 2021

As part of your New School/Reinstatement submission, you must include an
electronic copy of your two previously completed audited financial statements.
Please note that all files must be in a non-editable PDF format and no personal
information such as Social Security Numbers should be contained in attachments.
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Remember, you can attach additional information not required during this process.
If you do attach additional information, please make a note in the “Notes” field on
the Completeness Checklist page. Signature pages must be scanned.

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
New Institution/Reinstatement Submission-Submit

If you successfully entered, saved and attached an electronic copy of your submission by clicking
on the SAVE and PROCEED button, the screen below should appear. This page can also be
reached by repeating the LOGIN step. This will take you to your institutions eZ-Audit homepage.
On the upper left hand side of the page, you will see a section “Other Submissions”. Click on the
underlined text “New Institution Submission” or “Reinstatement Submission” and then click on the
underlined text “Submit”. The screen below should appear:

1.
2.
3.
4.

This should read the name of your institution and OPE ID number. Confirm that this is correct.
Please read to understand and attest that you have met all requirements.
Click on the “SUBMIT TO ED” button to complete your New Institution Submission process.
The following confirmation of receipt will be displayed on your home page.

NOTE
June 2021

You will have “read” access only once submitted.
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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Stub Audit Submission

Stub Audit Submission Compliance Audit Information

To complete your institution’s Stub Audit Submission, complete the LOGIN step. This will take
you to your institution’s eZ-Audit homepage. On the upper left hand side of the page, you will
see a section “Other Submissions”. Click on the underlined text “Stub Audit Submission”, and
then the screen below should appear with your institution’s name:

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.

12.

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Stub Audit Submissions Completeness Checklist

If you successfully entered or saved the information inputted on the Compliance Audit page by
clicking on the SAVE AND PROCEED button, the screen below should appear. This page can
also be reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit
homepage. On the upper left hand side of the page, you will see a section “Other Submissions”.
Click on the underlined text “Stub Audit Submission”, and then click on the underlined text
“Completeness Checklist”. The screen below should appear:

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

1. This should read your institution’s name and OPEID number. Confirm that this is correct.
2. Ensure all applicable documents are included with your submission
3. Enter contact information. Provide additional notes as necessary. Please feel
free to attach any additional document(s). If you do attach these additional
documents, please write a note in this field advising that you have attached
additional information not required in this process.
4. Click the CANCEL button to erase all entries.
5. Click the SAVE button to save all entries currently on screen.
6. Click the SAVE and PROCEED button to take you to the Upload Attachment page.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Stub Audit Submissions Upload Attachments

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

3. Check all appropriate documents attached After the document has been selected
identify the file type by checking the box, click the “ADD” button to ensure that the
document has been successfully attached to your compliance auditsubmission.
4. Click the CANCEL button to erase all entries.
5. Click the SAVE button to save the uploaded document currently on the screen.
Repeat steps 2-6 as necessary
6. Click the SAVE and PROCEED button to take you to the Stub Audit Submission-submit page.

NOTE

June 2021

As part of your stub audit submission, you must include an electronic copy of your
audit and/or complete audited financial statements. Please note that all files must be in
a non editable. PDF format and no personal information such as Social Security
Numbers should be contained in attachments. Remember, you can attach additional
information not required during this process. If you do attach additional information,
please make a note in the “Notes” field on the Completeness Checklist page.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Stub Audit Submission-Submit

If you successfully entered, saved and attached an electronic copy of your submission by clicking
on the SAVE and PROCEED button, the screen below should appear. This page can also be
reached by repeating the LOGIN step. This will take you to your institution’s eZ-Audit homepage.
On the upper left hand side of the page, you will see a section “Other Submissions”. Click on the
underlined text “Stub Audit Submission”, and then click on the underlined text “Submit”. The
screen below should appear:

1. This should read the name of your institution and OPEID number. Confirm that this is correct.
2. Please read to understand and attest that you have met all requirements.
3. Click on the “SUBMIT TO ED” button to complete your Stub Audit Submission
process. If you do not have access to the “Submit To ED” button, submitter is not
selected as a userrole.
4. The following confirmation of receipt will be displayed on your home page.

NOTE
June 2021

You will have read access only once submitted

110

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Additional Information
Additional Information Submission

This page can be reached by repeating the LOGIN step. This will take you to your institution’s
eZ-Audit homepage. On the upper left hand side of the page, you will see a section “Other
Submissions”. Click on the underlined text “Other Submissions” and then click on the
underlined text “Submit Additional Information”. The screen below should appear:

1. This should read the name of your institution and OPE ID number. Confirm that this is correct.
2. Select a submission type.
3. Click on the Browse button to search for document(s) to be attached. The screen below should
appear:

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

1. After the document has been attached and the file type identified by checking the

box, click the “ADD” button to ensure that the document has been successfully
attached to your submission.

NOTE

June 2021

To submit additional information the submission must still be under FSA review.

112

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Letters/ Notifications
Notifications

At any time, you will be able to view your institution’s review status by viewing the notification
section of your homepage. This can be reached by repeating the step LOGIN. This will bring
you to your institution’s eZ-Audit homepage and the screen below should appear:

1. This should read the name of your institution and OPEID number. Confirm that this is correct.
2. This is the Notification section. Most recent institution submission status and other
notifications will be displayed.

NOTE
June 2021

Users should periodically check the Institution Home Page for an up to
date status of their submissions. If ED has deemed a submission
113

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
incomplete, the Incomplete Letter will be posted to Notifications. The
incomplete letter needs to be opened before the re-submission link will
appear.

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Resubmission/ Incomplete Letter
If your submission has been deemed incomplete you will be required to Resubmit. An email will
be sent to the person(s) as listed on the Checklists page in Contacts informing them that the
submission has been deemed incomplete. A copy will also be sent to the Institution’s President
and Financial Aid Administrator.
Resubmissions should be submitted 7 calendar days from receipt of email/letter.
To resubmit you must first view your incomplete letter posted to the Notifications section of
your Institution Home Page. To begin your resubmission, follow steps below.
1. Login to eZ-Audit. This will take you to your Institution’s Home Page. The screen below
should appear. Verify the name on your institution and OPEID.

2. Click link to view Incomplete Letter. Incomplete letter will provide information
regarding the reason(s) your submission was deemed incomplete. Letter will open in
separate window.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

3. Return to your home page.

4. Click the Resubmit link from left navigation area.
5. Correct submission as directed in Incomplete Letter. Portions of submission deemed
complete will be read-only.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Delinquent Letter
If your submission is not received by its due date, a Delinquent Email will be sent to the
Institution’s President, CFO, and Institution’s Financial Aid Administrator. The email will indicate
that a Delinquent Letter has been posted to the Notifications section of your Institution’s Home
Page. Once the Delinquent Email is received, you will be directed to logon onto eZ-Audit to view
the Delinquent Letter. The Delinquent Letter will disappear once you have submitted the
submission.

1. Click link to view Delinquent Letter. Delinquent letter will provide information
regarding whichannual submission is overdue. Letter will open in separate window.

June 2021

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

2. Close or minimize the browser to return to your home page.
3. Click on the Create Annual Submission link to submit your annual submission.

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Reminder Email

A Reminder email will be sent 60 and/or 30 days prior the submission due date. The Reminder
Email will be sent to the Institution’s President, CFO, Financial Aid Administrator and eZ-Audit
Institution Administrator to remind them that the Compliance Audit and/or Financial Statement due
date is approaching.

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools

Appendix
Balance Sheet Mapping and References for eZ-Audit
#

Item

Description
Cash on hand, demand deposits
in banks and other accounts
characteristic of demand deposits
that may
be withdrawn without prior notice
or substantial penalty.

Mapped
Reference

Accounting
Reference

Regulatory
Reference

Cash and Cash
Equivalents

Balance
Sheet

SFAC No.6 &
FASB
Technical
Bulletin
NO. 81-4

Accounts
Receivable
- Students

All amounts due from
students on account.

Balance
Sheet

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Accounts
Receivable
- Employee

All amounts due from employee
borrowings from the institution or
employee advances.

Balance
Sheet

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Accounts
Receivable,
- Related Parties;
secured

All amounts due from related
parties [owners, shareholders and
affiliates] on account that are
collateralized or subject to a
security agreement.

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Accounts
Receivable, Related Parties:
unsecured

All amounts due from related
parties [owners, shareholders and
affiliates] on account that are not
collateralized or subject to a
security agreement.

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Accounts
Receivables,
- other

All amounts on account not
included in line items 2 thru 5
above.

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
7

June 2021

Allowance for
Doubtful Accounts

The amount of the allowance
recorded to
recognize the value of
uncollectible accounts.

103

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Item

Description

Mapped
Reference
Balance
Sheet and
Notes

Accounting
Reference
SFAC
No. 6

Regulatory
Reference
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Net Accounts
Receivable

Net realizable value of accounts
receivables. Equals gross
accounts receivable less the
allowance for doubtful accounts
[line items 2 thru 6
minus 7].

Prepaid
Expenses

Expenses that result from a cash
outlay in a prior period; and, has
not yet been consumed.

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

The cost of goods purchased for
resale in the normal course of
business.

Balance
Sheet and
Notes

SFAC
No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Inventories

Notes
Receivable
- Related Parties;
secured

All amounts due from related
parties [owners, shareholders and
affiliates] on account in the form of
promissory notes that are
collateralized or subject to a
security agreement.

Balance
Sheet and
Notes

SFAC
No. 6
&
SFAS 57

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Notes
Receivable,
- Related
Parties;
unsecured

All amounts due from related
parties [owners, shareholders and
affiliates] on account in the form of
promissory notes that are not
collateralized or subject
to a security agreement.

Balance
Sheet and
Notes

SFAC
No. 6
&
SFAS 57

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

All amounts on account in the form
of promissory notes not included in
line items 11 and 12 above.

Balance
Sheet and
Notes

SFAC No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Marketable debt and equity
securities classified either as heldto-maturity, trading or available-for-

Balance
Sheet and
Notes

June 2021

Notes
Receivable
- other

Investmentscurrent

104

SFAC No. 6
& SFAS 115

34 CFR
668.23
34 CFR

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
sale; and, included in current assets.

Deferred
Advertising

Deferred [capitalized] advertising
costs resulting from direct response
advertising, only.

Balance
Sheet and
Notes

SOP 93-7

Deferred Income
Taxes; current

Deferred income tax benefits that
will reverse during the next fiscal
year.

Balance
Sheet and
Notes

SFAS 109

Other Current
Assets

All current assets not included in line
items 1 thru 16 above.

Balance
Sheet and
Notes

SFAS 109

Current Assets

Sum of all current assets [line items
1 thru 17] above.

Balance
Sheet and
Notes

SFAS 109

19 Property, Plant, and
Equipment, including
capitalized leases

Property, Plant and Equipment used
in operations [placed in service]; not
to include construction in progress.

Balance
Sheet and
Notes

SFAS 109

Accumulated
Depreciation

Balance
Sheet and
Notes

SFAC No. 6
&
APB No 1

Net Property, Plant
and Equipment,
including
capitalized
leases

Cumulative total of all depreciation
expense
incurred on property, plant
and equipment including
capital leases used in
operations.
Property, Plant and
Equipment including capitalized
leases net of accumulated
depreciation.

Intangible Assets,
net of accumulated

All purchased intangibles including
patents, franchises, copyrights,

Balance
Sheet and

June 2021

105

Balance
Sheet and
Notes

Calculated

APB 17
& SFAS 142

668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
amortization
[excluding goodwill]

trademarks, brand names,
covenants not to compete,
accreditation costs, program
development costs; and, any
advertising costs not resulting from
direct
response advertising
The excess of costs over the market
[fair] value of specific assets
acquired in a business combination.

Notes

34 CFR
668.171
34 CFR
668.172

Balance
Sheet and
Notes

APB 17
& SFAS 142

Goodwill, net of
accumulated
amortization

Investments

Debt and equity securities, facilities,
land and other assets held for longterm purposes.

Balance
Sheet and
Notes

SFAC No. 6
& SFAS 115

Notes Receivable
- Related Parties;
secured

Balance
Sheet and
Notes

SFAC No. 6
& SFAS 57

Notes Receivable
- Related Parties;
unsecured

Balance
Sheet and
Notes

SFAC No. 6
& SFAS 57

Notes Item
Receivable
- other

All amounts due from related parties
[owners, shareholders and affiliates]
on account in the form of promissory
notes that are collateralized or
subject to a security agreement
classified
as non-current.
All amounts due from related parties
[owners, shareholders and affiliates]
on account in the form of promissory
notes that are not collateralized or
subject to a security agreement
classified as non-current.
All amounts on account
form of promissory notes not
included in line items 25 and 26
above classified as non-current.

Balance
Sheet and
Notes

SFAC No. 6

Deferred Income
Taxes; non-current

Deferred income tax benefits that
will reverse during the next fiscal
year.

Other Non- current
Assets

All non-current assets not included
in line items 19 thru 28
above.

June 2021

106

SFAS 109

Balance
Sheet and
Notes

SFAC No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
30

Total Assets

Calculated

Sum of all assets [line items1 thru
29] above.

Balance
Sheet and
Notes

Accounts Payable

All amounts owed to suppliers or
providers of services from
normal operations.

Balance
Sheet and
Notes

SFAC No. 6

Refunds Payable

All amounts owed to stud and/or
financial partners subject
to Title IV programs. ents

Balance
Sheet and
Notes

SFAC No. 6

Student Deposits
and
advances

All amounts owed to students from
deposits and advance
payments.

Balance
Sheet and
Notes

SFAC No. 6

Accrued Expenses

Current liabilities that result from the
consumption of an asset or service
during the fiscal year prior to
payment.

Balance
Sheet and
Notes

SFAC No. 6

Current Portion of
Long-term Debt

Portion of debt used for long- term
purposes maturing during the next
fiscal year.

Balance
Sheet and
Notes

SFAC No. 6

Deferred Tuition

Receipts on tuition not recognized
as revenue due to Department
policy requiring pro rata recognition.

Balance
Sheet and
Notes

SFAC No. 6

Deferred Income
Taxes; current

Deferred tax liabilities reversing
during the next fiscal year.

Balance
Sheet and
Notes

SFAS 109

June 2021

107

34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
38

Lines of Credit

Amounts owed due to lines of credit
with banks.

Balance
Sheet and
Notes

SFAC No. 6

Current Portion of
Capital Lease
Obligations

Portion of the net present value of
minimum lease payments maturing
during the next fiscal year.

Balance
Sheet and
Notes

SFAS 13/98

Other Current
Liabilities

All current liabilities not included in
line items 31 thru 39 above.

Balance
Sheet and
Notes

SFAC No. 6

Current Liabilities

Sum of all current liabilities [line
items 31 thru 40 above.

Balance
Sheet and
Notes

Calculated

Long-term Debt,
net of current
portion

All formal debt instruments and any
other debt instruments
used for long-term purposes.

Balance
Sheet and
Notes

SFAC No.
47

Deferred Income
Taxes;
non- current

Deferred tax liabilities not reversing
during the next fiscal
year.

Balance
Sheet and
Notes

SFAS 109

Capital Lease
Obligations

Net present value of minimum lease
payments not maturing
during the next fiscal year.

Balance
Sheet and
Notes

SFAS 13/98

Deferred
Compensation

All amounts owed for pensions,
retirements and other deferred
elements of compensation

Balance
Sheet and
Notes

SFAS 106,
112
and 132

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
46 Post Employment &
Post Retirement
Benefits

All amounts owed on plans that pay
employees or them
beneficiaries for post
reemployment or post
retirement benefits other than
pensions; must be shown on
face of the balance sheet.
All non-current liabilities not included
in line items 42 thru 46
above.

Balance
Sheet and
Notes

SFAS 106,
112
and 132

Balance
Sheet and
Notes

SFAC No. 6

Sum of all liabilities [line items 41
thru 47] above.

Balance
Sheet and
Notes

All capital contributed or donated by
owners,
shareholders and donors.

Balance
Sheet and
Notes

SFAC No. 6

Undistributed earnings and profits
maintained for internal
purposes.

Balance
Sheet and
Notes

SFAC No. 6

34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Other Non- current
Liabilities

Total Liabilities

Contributed Capital

Retained Earnings

Common Stock

Par value of all classes of common
stock, authorized and
outstanding.

Balance
Sheet and
Notes

SFAC No. 6

Preferred Stock

Par value of all classes of preferred
stock, authorized and
outstanding.

Balance
Sheet and
Notes

SFAC No. 6

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Paid-in capital,

Capital that results from the sale of

Balance

SFAC No. 6

34 CFR

June 2021

109

Calculated

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Excess of Par

668.23
34 CFR
668.171
34 CFR
668.172

stock [common or
preferred] in excess of par.

Sheet and
Notes

Unrealized gains or (losses) from
investments in avail-forsale securities.

Balance
Sheet and
Notes

SFAS 130

Change in equity from transactions
and events not resulting from
investments by or distribution to
owners.

Balance
Sheet and
Notes

SFAS 130

Unrealized Gains
and
(Losses)

Comprehensive
Income [Loss]

Treasury Stock

Value [cost or par] of stock purchase
and held after initial issuance

Balance
Sheet and
Notes

SFAC No. 6

Owner’s Equity

Sum of all owners’ equity accounts
[line items 49 thru 56] above.

Balance
Sheet and
Notes

Calculate d

Total Liabilities and
Owner’s Equity

Sum of Total Liabilities and Total
Owner’s Equity [line item 48 plus
line item 57 above].

Balance
Sheet and
Notes

Calculate d

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
Income Statement Mapping and References for eZ-Audit
#

Item

Description

Mapped
Reference
Income
Statement

Accounting
Reference
APB
No. 9/30

Regulatory
Reference
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Operating
Income

Income derived from activities that
constitute the major focus of the
institution [e.g. tuition, fees, etc. net of
contra revenue
items including internal
scholarships].

Tuition and
Fees

Tuition and fees revenues included in
operating income received from
students duly enrolled in the institution
per ED income recognition policy.

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

All operating revenues other than
tuition and fees included in operating
income received from students duly
enrolled in the institution [e.g. rental,
store and
services revenues, etc.]

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Total of all operating income
elements shown above [line items
2 thru 3].

Income
Statement

Calculated

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Other

Total Operating
Income

Non-operating
Income

Income derived from activities that do
not constitute the major focus of the
institution [e.g. gains on sale of
investments, interest income and
other].

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Gains on Sale of
Investments

Gains on the sale of assets classified
as investments in the accounts of the
institution.

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Interest Income

Interest income derived from
debt securities or bank
accounts, etc. held by the

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR

June 2021

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Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
668.171
34 CFR
668.172

institution.

All non-operating revenues other than
gains on sale of investments and
interest income included in nonoperating income received from
activities not constituting the major
activities of the institution
[e.g. space rental, etc.].
Total Non- operating Total of all non-operating income
Income
elements shown above [line items 6 thru
8].

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Income
Statement

Calculat
ed

Total Income

Sum total of operating and nonoperating income elements [line items 4
plus line item 9 above].

Income
Statement

Calculat
ed

Cost of Goods Sold

Costs of all goods sold from inventory
during the fiscal year [books, items of
clothing, accessories, etc.].

Income
Statement

APB
No. 9/30

Salaries Expense

Wage and Salary expenses and other
expenses of payroll for operating
personnel.

Income
Statement

APB
No. 9/30

Rent expense

Expenses for the rental of facilities
and/or equipment used in operations.
Those subject to operating lease
[rentals].

Income
Statement

APB
No. 9/30

June 2021

Other

112

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
#

Item

Description

Mapped
Reference

Accounting
Reference

Insurance
Expense

Expenses incurred to insure
facilities and personnel involved in
operations.

Administrative
Expenses

Expenses incurred by the
institution related to administration
activities [e.g. wages, salaries,
rent, insurance, etc].

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Expenses for the systematic
expiration of tangible assets
[depreciation] and intangible assets
[amortization] used in operations.

Income
Statement

APB
No. 9/30

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Depreciation
and
Amortization
Expenses

Income
Statement

APB
No. 9/30

Regulatory
Reference

Interest
Expense

Expenses on outstanding
debt securities of the
institution.

Income
Statement

APB
No. 9/30

Debt Expense

Expenses recognized to
account for the
uncollectibility of amounts
due on account.

Income
Statement

APB
No. 9/30

Marketing

Expenses of sales and other
marketing activities
conducted by the institution.

Income
Statement

APB
No. 9/30

Recruiting

Expenses from recruitment
activities conducted by the
institution.

Income
Statement

APB
No. 9/30

June 2021

113

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
668.172
#
21

Item

Description
Other Expenses

All expenses not include in line
items 11 thru 20 above [e.g.
losses on sale of investments,
other assets, etc.].

Mapped
Reference
Income
Statement

Accounting
Reference
APB
No. 9/30

Regulatory
Reference
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

22 Expenses

Total of all expenses shown above
[line items 11 thru 21 above].

Income
Statement

Calculated

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

Net Income
[Loss] Before
Taxes

Total Income [line item 10]
minus Total Expenses [line
item 22].

Income
Statement

Calculated

Provision for
income Taxes

Income tax expense or
benefit for the current fiscal
year.

Income
Statement

APB
No. 9/30

Net Income
[Loss] After
Taxes

Net Income after income tax
expense of benefit for the
current fiscal year.

Income
Statement

Calculated

Gains [Losses], which are
infrequent and unusual in
nature [e.g. early
extinguishment of debt].

Income
Statement

Gains [Losses] from the
discontinuance of a segment
of the business.

Income
Statement

APB
No.
9/26/30
&
SFAS
4/64/76
APB
No. 9/30

June 2021

Extraordinary
Gain [Loss], net
of income taxes

Gain [Loss]
from
Discontinue
d
Operations,

114

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
net of taxes
#
28

Item
Gain [Loss]
from a Change
in Accounting
Principle, net of
taxes

Net Income
(Loss)

Retained
Earnings,
Beginning
of the year

Gain [Loss]
from Correction
of an Error, net
of taxes

Distribution to
Shareholders

668.172
Description
Income [Loss] due to change
from one GAAP compliant
accounting method or
practice to another.

Net amount of income [loss]
after all regular and irregular
elements of income [line
items 25 thru 28 above].

Income
Statement

Undistributed earnings and
profits maintained by the
institution for internal
purposes at beginning of the
fiscal year.

Income
Statement

Income or loss resultant from
an error in application or
calculation related to an
accounting practice during
the prior fiscal year [prior
period adjustment].
Payments from fund or

Income
Statement

corporate cash flow. May
include dividends from
earnings, capital gains
from sale of portfolio
holdings and return of
capital. Fund distributions
can be made by check or
by investing in additional
shares. Funds are
required to distribute

June 2021

Mapped
Reference
Income
Statement

115

Income
Statement

Accounting
Reference
APB Nos.
9/20/30
&
FASB
Interpret
Nos. 1
and 20
&
FASB
Bulletin
No. 79-17
Calculated

SFAC
No. 6

SFAS
No. 16

Regulatory
Reference
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172.

Step-by-Step Guide to Using eZ-Audit for For-Profit Schools
capital gains (if any) to
#

Item

Description
shareholders at least once per
year. Some corporations offer
Dividend Reinvestment
Plans (D.R.P.).

June 2021

Retained
Earnings, end of
year

Undistributed earnings and profits
maintained by the institution for
internal purposes at end of the
fiscal year.

116

Mapped
Reference

Income
Statement

Accounting
Reference

SFAC
No. 6

Regulatory
Reference

34 CFR
668.23
34 CFR
668.171
34 CFR
668.172

File Type	application/pdf
File Title	eZ-Audit Proprietary School Users Manual
Author	Dipa Mistry
File Modified	2021-07-14
File Created	2021-07-14