Finding Text
2023 – 004 Perkins Recordkeeping
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: 84.038
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: June 1, 2022 – May 31, 2023
Type of Finding:
-Significant Deficiency in Internal Control over Compliance
-Other Matters
Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 674-19(e) states that Institutions must retain original, true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan made.
Condition: During our testing, we noted that 34 out of the 70 Perkins files tested, the MPN was not retained on file.
Questioned Costs: None
Context: The MPN’s for 34 students were not retained as required by the regulations.
Cause: The loans were old and as such the records were not able to be found.
Effect: The University was not in compliance with the Perkins recordkeeping regulation as it relates to MPNs.
Repeat Finding: No
Auditor’s Recommendation: We recommend that the University implement a procedure to ensure that all necessary MPNs are retained in accordance with the federal regulation.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.