Audit 47260

Grantor: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Criteria and Condition Under the Perkins Loan Program, institutions are required to keep the original promissory notes until the loans are satisfied. Context For six out of seven students in repayment tested, the University was unable to produce original promissory notes. These notes originated at various time between 1992 and 2011. Cause A breakdown of controls over promissory notes occurred during departmental reorganizations, office moves, and the assignment process of the loan program which caused the original promissory notes to be erroneously discarded or misplaced. Potential Effect Failure to maintain the original promissory notes puts the University at risk that the loans will not be accepted when assigned. Recommendation We recommend strengthening controls around promissory notes and ongoing review of loan documents for federal loan recipients. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and the reader?s attention is directed to the corrective action plan.

Grantor: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Criteria and Condition Under the Perkins Loan Program, institutions are required to keep the original promissory notes until the loans are satisfied. Context For six out of seven students in repayment tested, the University was unable to produce original promissory notes. These notes originated at various time between 1992 and 2011. Cause A breakdown of controls over promissory notes occurred during departmental reorganizations, office moves, and the assignment process of the loan program which caused the original promissory notes to be erroneously discarded or misplaced. Potential Effect Failure to maintain the original promissory notes puts the University at risk that the loans will not be accepted when assigned. Recommendation We recommend strengthening controls around promissory notes and ongoing review of loan documents for federal loan recipients. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and the reader?s attention is directed to the corrective action plan.