Finding Text
2022-003 ? Perkins Loan Record Retention Federal Agency: U.S. Department of Education Federal Program Title: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.038 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control over Compliance, Other Matters Criteria or Specific Requirement: Institutions must retain original or true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan made. Disbursement records, electronic authentication and signature records for loans made with an MPN must also be retained by the institution (34 CFR 674.19(e)). Condition: During our testing, we noted an instance where the University was unable to locate the MPN for a student with an open Perkins loan. Questioned Costs: None. Context: During our testing, we noted that the University was unable to provide an MPN for 1 student out of 30 students tested. Cause: Improper record retention procedures for MPNs. Effect: The University is not in compliance with Department of Education regulations. Repeat Finding: Yes, 2021-005. Auditors? Recommendation: We recommend the University evaluate its procedures around the retention of Perkins loans records to ensure that all records for open loans are being properly maintained. Views of Responsible Officials: Management agrees with the finding and has developed a plan to correct the finding.