Finding 1148256 (2024-008)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-23
Audit: 362826
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The College is not storing original paper promissory notes securely, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 674.19, which mandates secure storage of financial documents.
  • Recommended Follow-up: Implement detailed controls for document security and ensure management is aware of retention requirements.

Finding Text

Finding 2024-008 U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N8) Perkins Condition: The College does not keep the original paper promissory notes in a locked fireproof container. The notes are stored in boxes in storage areas. Criteria: Per 34 CFR 674.19, institutions are required to keep original paper promissory notes and repayment schedules in a locked fireproof container. Cause: Management was not aware of the document retention requirements and did not establish proper physical security controls over the original promissory notes. Effect: The documents could be lost or damaged. Repeat Finding: Repeat of 2023-011 Recommendation: RBT suggests that the College develop and follow detailed controls over securing these documents. Perspective: This issue appears to be systemic since it impacted all promissory notes. Management’s Response: See corrective action plan.

Categories

No categories assigned yet.

Other Findings in this Audit

  • 571814 2024-008
    Material Weakness Repeat
  • 571815 2024-009
    Material Weakness Repeat
  • 571816 2024-010
    Material Weakness
  • 1148257 2024-009
    Material Weakness Repeat
  • 1148258 2024-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.69M
84.268 Federal Direct Student Loans $1.29M
84.038 Federal Perkins Loan Program_federal Capital Contributions $242,629
84.048 Career and Technical Education -- Basic Grants to States $150,273
84.425 Education Stabilization Fund $135,234
84.033 Federal Work-Study Program $46,052
84.007 Federal Supplemental Educational Opportunity Grants $39,350