FAC Explorer

Finding 1094030 (2024-003)

-
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-03
Audit: 335602
Organization: Thomas College (ME)
Auditor: Wipfli LLP

AI Summary

  • Core Issue: The College failed to deposit $44,617 for unenforceable loans into the Perkins Loan bank account before calculating the cash balance.
  • Impacted Requirements: This violates Section 674.50(g) of Perkins Loan regulations regarding loan purchases and reimbursements.
  • Recommended Follow-Up: Ensure the College completes the required deposit and recalculates the Department of Education’s share of the cash balance.

Finding Text

Finding 2024-003 Repeat Finding: No Major Programs: 84.038 Perkins Loans Program Federal Agency: Department of Education Award Year: July 1, 2023 to June 30, 2024 Compliance Requirement: Special Tests – Perkins Loan liquidation Type of Finding: Other matters Questioned Costs: None Criteria: All loans deemed unenforceable by the Department will be rejected for assignment and returned to the school for purchase. Section 674.50(g) of the Federal Perkins Loan Program regulations requires that the school reimburse its revolving fund (the Fund) for the entire portion of the outstanding balance plus any accrued interest on a loan the Department determines is unenforceable. Condition and Context: The College was required to purchase certain unenforceable loans with outstanding principal and interest in the amount of $44,617. The purchased amount was required to be deposited into the College’s Perkins Loan bank account prior to the determination of the cash balance and final distribution. The College did not make the deposit prior to the calculation and distribution. Effect: The Department of Education did not receive the proper share of the final cash balance. Cause: The College did not understand the procedures for the purchase of rejected loans. Recommendation: We recommend the College make the required purchase with a deposit into the Perkins cash account and recalculate the Department of Education’s share of the cash balance. View of responsible officials: The College agrees and has made the corrective action.

Categories

Procurement, Suspension & Debarment Student Financial Aid Matching / Level of Effort / Earmarking Special Tests & Provisions

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.05M
84.063 Federal Pell Grant Program $1.52M
21.027 Coronavirus State and Local Fiscal Recovery Funds $1.23M
84.116 Fund for the Improvement of Postsecondary Education $301,656
84.031 Higher Education_institutional Aid $263,996
84.007 Federal Supplemental Educational Opportunity Grants $248,573
84.042 Trio_student Support Services $229,573
84.033 Federal Work-Study Program $149,198
84.038 Federal Perkins Loan $35,430