foreign_for_profit_manual

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

foreign_for_profit_manual

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

Table of Contents

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

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

School Group Submissions ......................................................................................................... 6
eZ-Audit Submission Requirements ........................................................................................... 7
eZ-Audit Rules of Behavior ........................................................................................................ 8

Questions/Concerns ................................................................................................... 12

eZ-Audit Registration ........................................................................................................................................ 13
Administrative Tasks/Security............................................................................................................................ 15

Login........................................................................................................................................... 15

New User Login ......................................................................................................... 17
Update My Profile Page ............................................................................................ 19
Forgot Password ....................................................................................................... 21
Logout ........................................................................................................................ 24
My Profile .................................................................................................................. 26
Change Challenge Questions .................................................................................... 28
Change Password ...................................................................................................... 29
Navigation ................................................................................................................. 30
Data Edits .................................................................................................................. 31

Manage Users .................................................................................................................................................... 32

Types of Users and Responsibilities .......................................................................................... 32

Institution Administrator Homepage ......................................................................... 32
Creating Data Entry/Submitter Users ....................................................................... 34

Institution Profile Page/Status ........................................................................................................................... 35

Institution Profile ....................................................................................................... 35

Historical Submissions .............................................................................................................. 37
Annual Submissions ........................................................................................................................................... 38

Annual Submission Financial Statement ................................................................................. 38
No Title IV Activity ............................................................................................................................................ 39

No Title IV Activity Submission Financial Statement .............................................................. 39

FSA Annual Submission – Financial Statements ....................................................... 40
90/10 REVENUE CALCULATION ATTESTATION ................................................................................ 55

FSA Annual Submission Compliance Audit Information ....................................................... 57
FSA Annual Submission Completeness Checklist.................................................................... 60
FSA Annual Submission Upload Attachments ......................................................................... 64
FSA Annual Submission-Submit .............................................................................................. 67
Merger/Change in Ownership............................................................................................................................ 69

Merger/Change in Ownership Submission Financial Statement ............................................69
Merger/Change in Ownership Submission Upload Attachments ............................................72
Merger/Change in Ownership Submission-Submit .................................................................. 75
Change in Fiscal Year End ................................................................................................................................ 76

Change in Fiscal Year End Submission ................................................................................... 76
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Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Closeout Audit Submission ................................................................................................................................ 77

Closeout Audit Compliance Audit Information ........................................................................ 77
Closeout Audit Submission Completeness Checklist ................................................................ 80
Closeout Audit Submission Upload Attachments ..................................................................... 82
Closeout Audit Submission-Submit ........................................................................................... 84
New Institution/Reinstatement Submission ........................................................................................................ 85

New Institution/Reinstatement Submission Financial Statement ............................................85
BALANCE SHEET ................................................................................................................................................. 87
INCOME STATEMENT ......................................................................................................................................... 87
PRIMARY RESERVE RATIO ............................................................................................................................... 87
EQUITY RATIO ...................................................................................................................................................... 87
NET INCOME RATIO ........................................................................................................................................... 87
New Institution/Reinstatement Submission Completeness Checklist ...................................... 88
New Institution/Reinstatement Submission Upload Attachments ............................................ 90
New Institution/Reinstatement Submission-Submit ................................................................. 93
Stub Audit Submission........................................................................................................................................ 94

Stub Audit Submission Compliance Audit Information ........................................................... 94
Stub Audit Submissions Completeness Checklist ..................................................................... 96
Stub Audit Submissions Upload Attachments........................................................................... 98
Stub Audit Submission-Submit................................................................................................ 100

Waiver ..................................................................................................................Error! Bookmark not defined.
Additional Information .................................................................................................................................... 102

Additional Information Submission ........................................................................................ 102

Letters/ Notifications ....................................................................................................................................... 104
Notifications .................................................................................................................................................... 104
Resubmission/ Incomplete Letter ..................................................................................................................... 105
Delinquent Letter ............................................................................................................................................. 107
Reminder Email ............................................................................................................................................... 109
Appendix .......................................................................................................................................................... 110

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

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 fsaezaudit@ed.gov 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:
Registering your entity with eZ-Audit
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
•
o
o

What role should my auditor play in eZ-Audit?

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

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

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 eZAudit

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

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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.
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).
Foreign 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:

NOTE

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 eZ-Audit 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 group would be ‘Yes’.
If you have additional questions regarding school groups, please send an
email to fsaezaudit@ed.gov or contact the eZ-Audit Help Desk at
1-877-263-0780.

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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)
Foreign For-Profit institutions’ financial statements and compliance audit is
due six months after the end of the fiscal year (34 CFR 668.23).
o All Foreign For-Profit 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 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 (https://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 (https://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 (https://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.

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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 eZ-Audit web site, or you have questions about FSA’s privacy
policy and information practices, you should e-mail us at webmaster@fsa.ed.gov. 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 Foreign Schools For-Profit

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

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

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Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
1. Rules of Behavior to view the detail rules
2. Accept & Continue
3. webmaster@fsa.ed.gov
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
o
o

June 2021

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 fsaezaudit@ed.gov or by calling 1-877-263-0780.

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

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.

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Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Even if you are not required to submit on April 1, please be sure to log on to the eZ-Audit
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 Foreign Schools For-Profit

Administrative Tasks/Security
Login

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

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

Your user name will be the first letter of your first name, the first five letters of your last
NOTE

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.

June 2021

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

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Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
• Who is your favorite athlete?
• 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.
All answers are case sensitive. You will not be able to view the answers as you type
them in.

NOTE

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 Foreign Schools For-Profit
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 Foreign Schools For-Profit

NOTE

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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.

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

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 Foreign Schools For-Profit
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.

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Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Challenge Questions
After eZ-Audit validates your username, the questions you initially chose will appear:

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.

NOTE

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The answers are case sensitive.

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

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

NOTE

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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 Foreign Schools For-Profit
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.

NOTE

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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 Foreign Schools For-Profit
If you clicked on the underlined text “Update My User profile” on your institution’s homepage, the
screen below should appear:

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

NOTE

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.

NOTE

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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.
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 Foreign Schools For-Profit
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.

NOTE

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 12-40 characters in length and must contain each of the
following: Uppercase, lowercase letters, numeric values and special Characters
(such as! @, #, $, &, *, ^) values. 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 eZ-Audit Help
desk at fsaezaudit@ed.gov or by calling 1-877-263-0780.

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

Manage Users

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

responsible for:
o Registering your school with eZ-Audit
o Providing/managing access to data entry and submission approval personnel,
as identified by your school
o Maintaining security information regarding Foreign 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 Foreign Schools For-Profit
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.

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

June 2021

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

Institution Profile Page/Status
Institution Profile

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.

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

June 2021

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

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 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 the screen below should appear with your
institution’s name:

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 NO, and click on the Submit button, the system will display No Title IV Financial
Statements page.
4. Select YES, and click on the Submit button, the system will display Financial Statement
Information page.

NOTE
June 2021

If you are submitting for a school group (your financial statements cover more than
38

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

No Title IV Activity
No Title IV Activity Submission Financial Statement

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 Foreign Schools For-Profit
FSA Annual Submission – Financial Statements

Annual Submission – Financial Statements page continues:

June 2021

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

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

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.
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.
7. 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

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Report.
If the opinion paragraph states that the financial statements “present fairly, in all material
respects”, the type of opinion should be “Unqualified”.
8. 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.
9. Choose “yes” or “no” if the Financial Statements are presented with the Supplemental Schedule
according to the new format per Borrower Defense Regulations.
10. 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).
14. 90/10 Revenue Calculation Attestation. For this section, please click on the 90/10
percentage attestation calculation link “OPEID of the school” and complete the fields
requested. (see section on completing the 90/10 Revenue Calculation Attestation).
15. If “No” is chosen for the financial statements according to the new format per Borrower
Defense Regulations, you the following links will appear:
Balance Sheet – (see section on completing the Balance Sheet).
16. Income Statement – (see section on completing the Income Statement).
17. Click the CANCEL button to make changes to all entries.
18. Click the SAVE button to ensure all entries are successfully stored by the system on this
page.
19. 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 Foreign Schools For-Profit
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 lefthand 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 start the 30 minute clock again.

June 2021

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

June 2021

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

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 - This should be the total of related party assets included in assets on the

June 2021

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

balance sheet. This number is not used to compute your composite score, it is just the

June 2021

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

3.
4.
5.

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

14.
15.

16.
17.
18.
19.
20.
21.
22.
23.
24.

June 2021

total amount 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
Comprehensive Losses
47

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

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
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.

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Primary Reserve Ratio Information Continues:
32. 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.
33. Post-employment and defined pension plan liabilities
34. Long-term debt - for long-term purposes and Construction in Process debt
(Combine line 16 through line 18)
35. Long-term debt for long-term purposes pre-implementation
36. Qualified Long–term debt for long-term purposes post-implementation for purchase of
Property, Plant and Equipment
37. Line of Credit for Construction in progress
38. Lease right-of-use asset liability (Combine line 20 and line 21)
39. Pre-Implementation right-of-use leases liabilities
40. Post-Implementation right-of-use leases liabilities
41. Total Operating Expenses and Losses:
42. Total Non-Operating Expenses and Losses
43. Comprehensive Losses
44. Discontinued Operations not classified as an operating expense
45. Change in accounting principle
46. Investment losses
47. Post-employment and defined pension plans losses less nonservice component of net
periodic pension and other post-employment plan expenses
48. Click the CANCEL button to erase all entries
49. Click the SAVE button for eZ-Audit to save the entries
50. 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 Foreign Schools For-Profit

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 Foreign Schools For-Profit
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), 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.

June 2021

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

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 Foreign Schools For-Profit

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Balance Sheet Information:
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 postretirement 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 Foreign Schools For-Profit
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:

2
3

5
4

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
90/10 REVENUE CALCULATION ATTESTATION

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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 Lines 7, Line 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 Foreign Schools For-Profit
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”. Click on the underlined text “Create FYE Annual
Submission”, and then click on the underlined text “Compliance 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 Foreign Schools For-Profit

1
2
3
4
5

7
8

10
11
9

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Compliance Audit Information
1. This should read your institution’s name and OPE ID number. Confirm that this is
correct.
2. Please indicate period audited in specified format.
3. Begin date is the beginning of the audit period.
4. End date is the end of the audit period.
5. If the auditor’s information is correct, select Yes . If incorrect or new, please select NO
and update auditor information.
6. Auditor’s TIN is optional unless the country is United States. Please enter the state’s
Tax Identification Number (TIN) if this information is incorrect or missing. DO NOT
USE HYPHENS.
7. Indicate whether your audit contains any findings related to Title IV.
8. 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.
9. Click the CANCEL button to make changes to all entries.
10. 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.
11. 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:



June 2021

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.

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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”. Click on the underlined text “Create FYE xx/xx/xxxx
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 Foreign Schools For-Profit

1. Ensure all applicable documents are included with your submission.
2. Ensure that all the documents uploaded are in English.
3. Ensure that the document do not have any Personally Identifiable Information (PII).

June 2021

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

4. 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.
5. IMPORTANT WARNING: Click the CANCEL button to erase/delete all entries since the last
time you saved your work.
6. 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.
7. 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.

NOTE

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.
School Group Submissions:




NOTE
June 2021

To complete the Checklist page for member school(s), click on the name of theschool.
Complete the Checklist page following the steps above.
Independent Auditors Report on Financial Statements, Report on Compliance and
62

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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 SFA Programs must be prepared and presented on auditor letterhead.
Signatures created using a word processing application are not acceptable.

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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”. Click on the underlined text “Create FYE
xx/xx/xxxx Annual 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 OPE ID number. Confirm that this is correct.
2. Click on the Choose File button to search for document(s) to be attached. Then

June 2021

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




June 2021

To Upload the Compliance Audit and/or Corrective Action Plan for member
school(s), click on the name of the school.
Follow the steps above.

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

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”. click on the underlined
text “Create FYE xx/xx/xxxx Annual 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 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 Foreign Schools For-Profit

NOTE

As part of 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.
If you are submitting for a school group the following screen on the next page will

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.

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

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:

NOTE

If your fiscal year end changes as a result of the change in ownership,
please submit a Change in FY end submission.

3
4

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
1.
2.
3.
4.

This should read your institution’s name and OPEID number. Confirm that this is correct.
Enter 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.
Click the SAVE and PROCEED button to go to the Upload Attachments page.
This is the next stage in the submission process.

5.
6.
7.
8.

BALANCE SHEET

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11
1.

June 2021

Cash and Cash Equivalents - Cash balances held to meet payments arising
in the ordinary course of operations. Cash & Cash Equivalents consist of, in
addition to currency on hand and deposits held by financial institutions that
70

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

3.
4.
5.

6.
7.

8.
9.
10.
11.

NOTE

June 2021

can be added to or withdrawn without limitations, such as demand deposits,
Short Term, highly liquid investments that are both readily convertible to
known amounts of cash and so near their maturity that they present
insignificant risk of change in value.
Current Total Net Accounts Receivable - Net accounts receivable
equals gross accounts receivable less the allowance for doubtful
accounts [line items 3 thru 7 minus 8]. This field is automatically
calculated by the eZ-Audit system.
Investments (convertible within 90 days) – Debt and equity securities,
real property, land and other long-term investments.
Accounts Receivable – Related Parties – Unsecured – All amounts
due from related parties [affiliates] on account that are not collateralized
or subject to a securityagreement.
Current Liabilities – All amounts owed to suppliers or providers of
services from normal operations, all amounts owed to students and/or
financial partners subject to Title IV programs, all amounts owed to
students from deposits and advance payments, current liabilities that
result from the consumption of an asset or service during the fiscal year
prior to payment, receipts on tuition not recognized as revenue and

deferred based upon the institution’s revenue recognition policy,
amounts owed on lines of credit with banks, the portion of longterm debt that is expected to mature within the next fiscal year,
the portion of the capital lease obligation that is expected to
mature within the next fiscal year and other current liabilities.

Total Assets – Sum of all assets included in line items 1 thru 25 above.
This will be automatically calculated by the eZ-Audit system.
Total Intangible Assets ( as defined by GAAP ) – All intangibles
including parents’ franchises, copyrights, trademarks, brand names,
covenants not to compete, good will accreditation costs, program
development costs, etc.
Total Liabilities - Sum of all liabilities included in line items 27 thru
42 above. This will be automatically calculated by the eZ-Audit
system.
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 Info page
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 Foreign Schools For-Profit
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 lefthand 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:

5
6

1. This should read the name of your institution and OPEID number. Confirm that this is correct.
2. Read and follow instructions accordingly. If you do not have all of the required documents,

June 2021

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

June 2021

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

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.

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

Change in Fiscal Year 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.

NOTE

June 2021

Confirm the information displayed 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. 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.
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.

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

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:

June 2021

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

2
3
4
5
6

7
8
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9

June 2021

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

11.

June 2021

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.
If the auditor’s information is correct, select Yes. If incorrect or new, please select NO and
update auditor information Enter audit firm’s TIN (Tax Identification Number). DO NOT USE
HYPHENS.
Auditor’s TIN is optional unless the country is United States. Please enter the state’s Tax
Identification Number (TIN) if this information is incorrect or missing. 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.

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Closeout Audit 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 “Other Submissions”. Click on the underlined text
“Closeout Audit Submission”, and then click on the underlined text “Completeness Checklist”. The screen
below should appear:
1

5
6

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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. Provide contact information (name, phone, email) of who should be contacted
regarding submission and 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 Foreign Schools For-Profit
Closeout Audit 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 “Other
Submissions”. Click on the underlined text “Closed Audit 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.
2. Click on the Choose File 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 Foreign Schools For-Profit

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 Foreign Schools For-Profit
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:

3
1. Confirm the information displayed 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 Closeout Audit Submission process. 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.

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 the
Stub Audit must be attached.

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

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 lefthand 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:

2
3

4
5

June 2021

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

Create New Institution/Reinstatement Submission – Financial Statement Continues:
Financial Statements Information Page should be completed using the current
completed fiscal yearend 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 populate 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. Enter the auditor firm’s Tax Identification Number (TIN) if the country is United States
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”.
7. 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”.
8. Choose “yes” or “no” if the Financial Statements are presented with the Supplemental
Schedule according to the new format per Borrower Defense Regulations.
9. If “No” is chosen for the financial statements according to the new format per Borrower
Defense Regulations, you the following links will appear:
10. Balance Sheet – (see section on completing the BALANCE SHEET).
11. Income Statement – (see section on completing the INCOME STATEMENT
12. If “Yes” is chosen for the financial statements according to the new format per Borrower

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
Defense Regulations, the following links will appear:
13. Primary Reserve Ratio – (see section on completing the PRIMARY RESERVE
RATIO).
14. Equity Ratio – (see section on completing the EQUITY RATIO).
15. Net Income Ratio – (see section on completing the NET INCOME RATIO).
16. Click the CANCEL button to make changes to all entries.
17. Click the SAVE button to ensure all entries are successfully stored by the system on
this page.
18. 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.
The Balance Sheet, Income Statement and Cash Flow Statement must be
completed.

NOTE

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 Foreign Schools For-Profit
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:

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6
4

June 2021

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

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. Provide the 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. 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 Foreign Schools For-Profit
New Institution/Reinstatement 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 “Other Submissions”. Click on the underlined text “Create New Institution
Submission” or “Reinstatement Submission” and then click on the underlined text “Upload
Attachments”. The screen below should appear:

4
6
5
7

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 on the next page on searching and attaching document(s).
Audited Financial statements for the previous two fiscal years should be
submitted.

NOTE
June 2021

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

June 2021

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

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. 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.

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

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.

NOTE
June 2021

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.

You will have “read” access only once submitted.

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

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:
and then click on the underlined text “Compliance Audit”. The screen in the next page
should appear:

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8
9

June 2021

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

11.

June 2021

This should read your institution’s name and OPE ID number. 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, 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.

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

5
4

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

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
2. Ensure all applicable documents are included with your audit report submission. 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 work PII.
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 Foreign Schools For-Profit
Stub Audit Submissions 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 “Other Submissions”. Click on the underlined text “Stub Audit Submission”, and then
click on the underlined text “Upload Attachments”. The screen below should appear:

June 2021

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

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
work PII.
(Please note: When uploading another document, please deselect the previous upload type
and then reselect the document type.)
4. 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.
5. IMPORTANT WARNING: Click the CANCEL button to erase/delete all entries since the last
time you saved your work.
6. Click the SAVE button to save all entries currently on the screen.
7. Click the SAVE and PROCEED button to take you to the Lender-Stub Audit Submissionsubmit page.
As part of your stub audit submission, you must include an electronic copy of your
NOTE
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.

June 2021

Step-by-Step Guide to Using eZ-Audit for Foreign Schools For-Profit
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 Closeout Audit Submission process. 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.

NOTE

June 2021

You will have “read” access only once submitted.

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

Waiver/Exemption Request
(Placeholder for future release)

June 2021

101

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

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 submission to associate the additional information with. If the submission was
not submitted via eZ-Audit it will not be listed. If the review is completed you cannot
submit additional information. Please check your Institution Homepage Notification
section the status of your submission.
3. Click on the Choose File 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 Foreign Schools For-Profit

4. 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.

103

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

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’s 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
incomplete, the Incomplete Letter will be posted to Notifications. The
incomplete letter needs to be opened before there-submission link will
appear.

104

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

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
wind

June 2021

105

Step-by-Step Guide to Using eZ-Audit for Foreign 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

106

Step-by-Step Guide to Using eZ-Audit for Foreign 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.

3
1

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

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Step-by-Step Guide to Using eZ-Audit for Foreign 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

108

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

Appendix
Appendix- A Balance Sheet Mapping and References for eZ-Audit
# Item
1

Cash and Cash
Equivalents

Accounts
Receivable
- Students

Accounts
Receivable
- Employee

Accounts
Receivable,
- Related
Parties; secured

Accounts
Receivable, Related Parties:
unsecured

June 2021

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.
All amounts due from
students on account.

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

110

Mapped
Reference
Balance
Sheet

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

Balance
Sheet

SFAC
No. 6

Balance
Sheet

SFAC
No. 6

Balance
Sheet and
Notes

SFAC
No. 6

Balance
Sheet and
Notes

SFAC
No. 6

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 Foreign For-Profit Schools
6

Accounts
Receivables,
- other

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

Balance
Sheet and
Notes

SFAC
No. 6

Allowance for
Doubtful
Accounts

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

Balance
Sheet and
Notes

SFAC
No. 6

Net Accounts
Receivable

Balance
Sheet and
Notes

SFAC
No. 6

Prepaid
Expenses

Net realizable value of
accounts receivables.
Equals gross accounts
receivable less the
allowance for doubtful
accounts [line items 2 thru 6
minus 7].
Expenses that result from a
cash outlay in a prior
period; and, has not yet
been consumed.

Balance
Sheet and
Notes

SFAC
No. 6

Inventories

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

Balance
Sheet and
Notes

SFAC
No. 6

Notes
Receivable
- Related
Parties;
secured

Balance
Sheet and
Notes

SFAC
No. 6
&
SFAS
57

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
collateralized or subject to a
security agreement.
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

June 2021

111

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

Step-by-Step Guide to Using eZ-Audit for Foreign For-Profit Schools
13 Notes
Receivable
other

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

14 Investments current

Marketable debt and equity
securities classified either
as held-to-maturity, trading
or available-for-sale; and,
included in current assets.

Balance
Sheet and
Notes

SFAC
No. 6
&
SFAS
115

15 Deferred
Advertising

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

Balance
Sheet and
Notes

SOP
93-7

16 Deferred
Income Taxes;
current

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

Balance
Sheet and
Notes

SFAS
109

All current assets not

Balance

SFAC

included in line items 1 thru
16 above.

Sheet and
Notes

No.6

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

Balance
Sheet and

Calculate
d

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

Balance
Sheet and
Notes

Other Current
Assets

18 Current Assets

Property, Plant
and Equipment,
including
capitalized
leases

June 2021

112

Notes

SFAC
No. 6
&
SFAS 121

Step-by-Step Guide to Using eZ-Audit for Foreign For-Profit Schools
20

Accumulated
Depreciation

Net Property,
Plant and
Equipment,
including
capitalized
leases
Intangible
Assets, net of
accumulated
amortization
[excluding
goodwill]

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.

Balance
Sheet and
Notes

SFAC
No. 6
&
APB No 1

Balance
Sheet and
Notes

Calculated

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
The excess of costs over
the market [fair] value of
specific assets acquired in
a business combination.

Balance
Sheet and
Notes

APB 17
& SFAS
142

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 long-term
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

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]

Balance
Sheet and
Notes

SFAC No. 6
& SFAS 57

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

Step-by-Step Guide to Using eZ-Audit for Foreign For-Profit Schools
Parties;
unsecured

Notes
Receivable
- other

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 in
the
form of promissory notes
not included in line items
25 and 26 above classified
as non-current.

668.171
34 CFR
668.172
Balance

SFAC

34 CFR

Sheet and
Notes

No. 6

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

Deferred
Income
Taxes; noncurrent

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

Balance
Sheet and
Notes

SFAS 109

Other Noncurrent
Assets

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

Balance
Sheet and
Notes

SFAC No.6

Total Assets

Sum of all assets [line
items 1 thru 29] above.

Balance
Sheet and
Notes

Calculated

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
students and/or financial
partners subject to Title IV
programs.

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

June 2021

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Step-by-Step Guide to Using eZ-Audit for Foreign For-Profit Schools
34

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

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

June 2021

Sum of all current liabilities
[line

115

Balance

Calculate

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

Description
items 31 thru 40 above.

Mapped
Accounting
Reference
Reference
Sheet and
d
Notes

Long-term Debt, All formal debt instruments and
net of current
any other debt instruments
portion
used for long-term purposes.

Balance
Sheet and
Notes

SFAS 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

Post
Employment &
Post Retirement
Benefits

Balance
Sheet and
Notes

SFAS
106, 112
and 132

Other Noncurrent
Liabilities

All amounts owed 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.
All non-current liabilities not
included in line items 42 thru 46
above.

Balance
Sheet and
Notes

SFAC
No. 6

June 2021

116

Regulatory
Reference
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

Step-by-Step Guide to Using eZ-Audit for Foreign For-Profit Schools
# Item
48

Total Liabilities

Contributed
Capital

Retained
Earnings

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

Mapped
Accounting
Reference
Reference
Balance
Calculate
Sheet and
d
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

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

Paid-in capital,
Excess of Par

Capital that results from the
sale of stock [common or
preferred] in excess of par.

Balance
Sheet and
Notes

SFAC
No. 6

Unrealized
Gains and
(Losses)

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

Balance
Sheet and
Notes

SFAS 130

June 2021

117

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

Description

Mapped
Accounting
Reference
Reference
SFAS 130
Balance
Sheet and
Notes

Comprehensive
Income [Loss]

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

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

June 2021

118

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

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

Description

Mappe
d
Referen
ce
Income derived from activities
Incom
that constitute the major focus
e
of the institution [e.g. tuition,
Stateme
fees, etc. net of contra revenue
nt
items including internal
scholarships].
Tuition and fees revenues
Incom
included in operating income
e
received from students duly
Stateme
enrolled in the institution per ED
nt
income recognition policy.

Operati
ng
Incom
e

Tuition
and
Fees

Oth
er

Total
Operatin
g Income

Nonoperatin
g
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].

Incom
e
Stateme
nt

Gains on
Sale of
Investments

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

Incom

June 2021

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

119

Incom
e
Stateme
nt
Incom
e
Stateme
nt

e
Stateme
nt

Accounti
ng
Referenc
e
APB
No.
9/30

Regulator
y
Referenc
e
34 CFR
668.23
34 CFR
668.171
34 CFR
668.172
34 CFR
APB
668.23
No.
34 CFR
9/30
668.171
34 CFR
668.172
34 CFR
APB
668.23
No.
34 CFR
9/30
668.171
34 CFR
668.172
34 CFR
Calculate
668.23
d
34 CFR
668.171
34 CFR
668.172
34 CFR
APB
668.23
No.
34 CFR
9/30
668.171
34 CFR
668.172
34 CFR
APB
668.23
No.
34 CFR
9/30
668.171
34 CFR
668.172

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

Interest
Income

June 2021

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

120

Incom

e
Stateme
nt

APB
No.
9/30

34 CFR
668.23
34 CFR

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

Mapped
Reference

Accounting
Reference

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 of all non-operating
income elements shown
above [line items 6 thru 8].

Income
Statement

APB
No. 9/30

Income
Statement

Calculated

Description
institution.

Other

Total Nonoperating
Income

Total Income

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

Income
Statement

Calculated

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

121

Regulatory
Reference
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 Foreign For-Profit Schools
# Item

Description

Mapped
Reference
Income
Statement

Accounting
Reference
APB
No. 9/30

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

Depreciation
and
Amortization
Expenses

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

Income
Statement

APB
No. 9/30

Interest
Expense

Expenses on outstanding
debt securities of the
institution.

Income
Statement

APB
No. 9/30

18 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

122

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

Mapped
Reference
Income
Statement

Accounting
Reference
APB
No. 9/30

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

Income
Statement

Calculated

Description

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

22 Expenses

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

Extraordinary
Gain [Loss], net
of income taxes

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

Gain [Loss]
from
Discontinue
d
Operations,
net of taxes

June 2021

123

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

Description

Mapped
Reference
Income
Statement

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

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

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

Net Income

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

SFAC
No. 6

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

Income
Statement

SFAS
No. 16

(Loss)

30 Retained
Earnings,
Beginning
of the year
31

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

Distribution to
Shareholders

June 2021

Payments from fund or
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
capital gains (if any) to
124

Income
Statement

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 Foreign For-Profit Schools
# Item

Description

shareholders at least
once per year. Some
corporations offer
Dividend Reinvestment
Plans (D.R.P.).
3
3

Retained
Earnings,
end of year

June 2021

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

125

Mappe
d
Referen
ce

Inco
me
State
ment

Accountin Regulator
g
y
Referenc Referenc
e
e

SFAC
No. 6

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