Finding Text
Program Title: Student Financial Assistance Cluster
Assistance Listing Number: 84.038
Federal Award Number: None
Federal Agencies: United States Department of Education
Criteria: According to federal regulations 34 CFR 674.19, the University must retain an original or electronically signed Master Promissory Note for at least three years after all loans made under the Master Promissory Note are satisfied.
Condition: During testing of Perkins Loan Recordkeeping and Record Retention, we identified that the University could not provide a signed promissory note for three out of four loans selected for testing.
Cause: The absence of signed forms may be due to inadequate oversight in the loan documentation process or a lapse in following established procedures for collecting and retaining signed forms.
Effect: The lack of signed Perkins Loan forms in the files could result in non-compliance with federal regulations and creates challenges in enforcing loan agreements.
Questioned Costs: None
Context: During testing of Perkins Loan Recordkeeping and Record Retention we identified that the University could not provide a signed promissory note for three out of four loans selected for testing.
Repeat Finding: No
Recommendation: It is recommended that the University reviews and strengthens its procedures for collecting and retaining signed promissory notes. This may include a review of all outstanding Perkins loan borrowers and review of related documentation to ensure a Master Promissory Note has been signed and retained.
View of responsible individuals: Management agrees with the finding.