Finding 1102229 (2024-002)

Federal Program Name: Federal Perkins Loan Program Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Federal Perkins Loan Program, 84.038 Award Year: July 1, 2023 – June 30, 2024 Criteria or Specific Requirement: Special Tests and Provisions – Perkins Loan Record Keeping and Record Retention Condition: The College did not maintain loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Question Costs: None Context: Although Perkins loans are no longer being disbursed, there are continuing compliance requirements. During testing of Perkins loan record keeping and record retention, 4 out of 16 outstanding loan selections and 1 out of 5 retired/assign loan selections did not have records of the related master promissory note (MPN). From a population of 157 outstanding loans, 16 were selected for testing. Errors consisted of 4 students for which the College did not have records of the MPN. Additionally, from a population of 5 retired/assigned loans, 5 were selected for testing. An error consisted of 1 student for which the College did not have record of the MPN. Our sample selection was not, and was not intended to be statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The MPNs for these students were not able to be located in Perkins loan files. Repeat Finding: Yes Recommendation: The College should revisit the record retention for student related files, particularly those that relate to federal compliance requirements. Views of Responsible Officials and Planned Corrective Action: The College agrees with the comment and has developed a plan to correct the finding. The College will examine the document destruction date on student related files related to federal compliance requirements to ensure accuracy of the document destruction date and accuracy of student files.