Finding Text
Federal Perkins Loan Program Record Retention Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program 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: Per U.S. Department of Education (ED) regulations, an institution shall retain disbursement and electronic authentication and signature records for each loan made using a Master Promissory Note (MPN) for at least three years from the date the loan is cancelled, repaid, or otherwise satisfied. (34 CFR 674.19 (e)). Condition: Certain loan MPNs were not retained for the three-year retention period. Questioned costs: None. Context: During our testing, we noted 7 of 40 loans tested that the University did not have a MPN on file. Cause: The University does not have a review process in place to ensure the MPNs are kept for least three years from the date the loan is cancelled, repaid, or otherwise satisfied. Effect: The University does not have a proper internal control system for the Federal Perkins Loan Program. Repeat finding: Yes, 2021-001. Recommendation: We recommend that the University keep MPNs for loans for the three-year retention period. Views of responsible officials: Management agrees with the finding and has developed a plan to correct the finding.