Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.038
Federal Award Identification Number and Year: N/A – Prior Perkins Awards
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 674.19.(e)(4)(iii), states that after the loan obligation is satisfied, the institution shall return the original or a true and exact copy of the note marked "paid in full" to the borrower, or otherwise notify the borrower in writing that the loan is paid in full, and retain a copy for the full prescribed period.
Condition: The College did not retain a copy of the note marked “paid in full” in the records of the retired or assigned loans.
Questioned Costs: None.
Context: During our testing, we noted that the college did not retain a copy of the note marked "paid in full." for six of the ten retired or assigned loans tested.
Cause: The College did not retain a copy of the note in the file.
Effect: The College is not in compliance with the record retention requirements.
Repeat Finding: No.
Recommendation: We recommend the college implement a checklist to reference to ensure all required elements of the Perkins loan records are retained as required.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.007/84.033/84.063/84.268/84.379/93.364
Federal Award Identification Number and Year: P268K230100 - 2023, P007A221087 - 2023, P063P220100 - 2023, P033A221087 - 2023, P379T230100 - 2023, E4C14916 - 2023
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Material Weakness in Internal Control over Compliance; Compliance, Material Noncompliance
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 682.610, states that institutions must report accurately the enrollment status of all students regardless of if they receive aid from the institution or not. Changes to said status are required to be reported within 30 days of becoming aware of the status change, or with the next scheduled transmission of statuses if the scheduled transmission is within 60 days.
Condition: The College did not correctly update student status changes and enrollment effective dates, nor did the College do so timely.
Questioned Costs: None
Context: In our statistically valid sample of sixty students selected for NSLDS enrollment reporting testing, we identified twenty eight samples for which the student’s enrollment status was not correctly reported to NSLDS, thirty samples for which the enrollment effective date was not correctly reported to NSLDS, twenty eight samples for which the change in status was not reported timely to NSLDS, and twenty eight samples for which the enrollment was not certified within 60 days.
Cause: The College did not timely or properly report student status changes to NSLDS through their third-party servicer, National Student Clearinghouse (NSC).
Effect: Failure to properly report enrollment status changes on NSLDS could affect the timing of the grace period for repayment of Title IV loans. Additionally, the College was not in compliance with the requirements to properly report student enrollment data correctly or timely to NSLDS.
Repeat Finding: Yes, 2022-002
Recommendation: We recommend that the College work with their third-party servicer and implement procedures to ensure that enrollment data, changes in status and effective dates within NSLDS are reported timely.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.
Federal Agency: Department of Education
Federal Program Name: Student Financial Assistance Cluster
Assistant Listing Number: 84.038
Federal Award Identification Number and Year: N/A – Prior Perkins Awards
Award Period: July 1, 2022 to June 30, 2023
Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 674.19.(e)(4)(iii), states that after the loan obligation is satisfied, the institution shall return the original or a true and exact copy of the note marked "paid in full" to the borrower, or otherwise notify the borrower in writing that the loan is paid in full, and retain a copy for the full prescribed period.
Condition: The College did not retain a copy of the note marked “paid in full” in the records of the retired or assigned loans.
Questioned Costs: None.
Context: During our testing, we noted that the college did not retain a copy of the note marked "paid in full." for six of the ten retired or assigned loans tested.
Cause: The College did not retain a copy of the note in the file.
Effect: The College is not in compliance with the record retention requirements.
Repeat Finding: No.
Recommendation: We recommend the college implement a checklist to reference to ensure all required elements of the Perkins loan records are retained as required.
Views of Responsible Officials and Planned Corrective Action: Management agrees with the finding and has developed a plan to correct it.