Finding Text
Finding 2025-008 – N. Special Tests and Provisions – Perkins Loan Record Keeping and Record Retention Information on Federal Program(s) - Federal Perkins Loan Program (ALN 84.038) Criteria or Specific Requirement – In accordance with 34 CFR 674.19, institutions must retain original or true and exact copies of promissory and master promissory notes, repayment records, and cancellation and deferment requests for each Federal Perkins Loan Program (“Perkins”) loan made. An institution shall retain disbursement and electronic authentication and signature records for each loan made using a master promissory note for at least three years from the date the loan is canceled, repaid, or otherwise satisfied (34 CFR 674.19(e)(3)(i)). Condition – For certain Perkins loans, the University could not locate the original promissory notes that contained all the necessary information, including signatures. In addition, the University was unable to provide a record of retired loans. Cause - Administrative oversight and insufficient internal controls. Effect or Potential Effect - The University was not in compliance with the Perkins loan recordkeeping and record retention requirements. Questioned Costs – None. Context – For 8 of 25 borrowers tested, the University was unable to provide documentation evidencing proper retention of loan records. In addition, the University was unable to provide a record of retired loans. Indication of Repeat Finding - This is a repeat of prior year Finding 2024-009. Recommendation – We recommend that the University enhance its procedures and internal controls over compliance to ensure proper retention of Perkins loan records. Views of Responsible Officials – Wheeling University worked with ECSI regarding Perkins information last year. With the Perkins program ending, we realized that we needed to move in the direction of closing out Perkins files/information. The University is currently working with ECSI so that we can submit Perkins information/files to the Department of Education. We have gathered information (promissory notes, bankruptcy details, payment information, etc.) as we have been able to locate it, and we have sorted account in alpha order to assist ECSI with the process. We will continue to update this process.