PROGRAM MONITORING
The Annual Operating Report (AOR) is the official reporting document required to be submitted for the Health Professions and Nursing FCC Loan Programs. The AOR is the principal monitoring instrument used by the Department of Health and Human Services to evaluate institutional performance. For this reason, it is important that the AOR be accurate, consistent with applications and identical with institutional ledgers.
Reports must be submitted within 45 days of the close of the reporting period. Extensions are not granted. Schools that fail to submit the complete required report by the due date are:
The above restrictions apply until the Secretary determines that the school is in compliance with the reporting requirements.
[42 CFR Part 57.215 and 42 CFR Part 57.315]
Schools that fail to submit a complete report within six months of the close of the reporting period will be subject to termination. The Secretary will provide the school with a written notice specifying his or her intention to terminate the school's participation in the program and stating that the school may request, within 30 days of the receipt of this notice, a formal hearing. If the school requests a hearing, it must within 90 days of the receipt of this notice, submit material, factual issues in dispute to demonstrate that there is cause for a hearing. These issues must be both substantive and relevant. The hearing will be held in the Washington, DC metropolitan area. The Secretary will deny a hearing if:
In the event that the Secretary denies a hearing, the Secretary will send a written denial to the school setting forth the reasons for denial. If a hearing is denied, or if as a result of the hearing termination is still determined to be necessary, the school will be terminated from participation in the program and will be required to return the Federal share of the fund to the Department of Health and Human Services. A school terminated for failure to submit a complete report within six months of the close of the reporting period must continue to pursue collections and may reapply for participation in the program once it has submitted the overdue report.
[42 CFR Part 57.215 and 42 CFR Part 57.315]
Effective September 1993, schools in program closing status are no longer required to submit Debt Management Reports; however, institutions phasing out of the loan programs are still required to remit the Federal Share of collections less costs on a quarterly basis.
A Financial Status Report (FSR) is required after the end of the project period, which is equivalent to the end of the fiscal year in which the funds were awarded. The Department of Health and Human Services forwards the FSR to institutions as part of the automated AOR. If, at the completion of the project year, schools have unobligated funds remaining in the scholarship account, the school must return these dollars to the Department of Health and Human Services. Schools that fail to complete the report or fail to use prior year allocations are not eligible to receive future funds.
