FAC Explorer

Finding 391972 (2023-006)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-04-01
Audit: 302137
Organization: Presbyterian College (SC)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The College cannot locate Perkins master promissory notes, violating record retention rules.
  • Impacted Requirements: Non-compliance with federal regulations on retaining original promissory notes and repayment schedules.
  • Recommended Follow-Up: Implement an inventory system for tracking Perkins MPN records on campus.

Finding Text

Federal Program Information: Federal Perkins Loans (ALN #84.038) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions – Perkins Loan Record Retention: An institution shall keep the original promissory notes and repayment schedules until the loans are satisfied. If required to release original documents in order to enforce the loan, the institution must retain certified true copies of those documents. (i) An institution shall keep the original paper promissory note or original paper MPN and repayment schedules in a locked, fireproof container. (ii) If a promissory note was signed electronically, the institution must store it electronically and the promissory note must be retrievable in a coherent format. An original electronically signed MPN must be retained by the institution for 3 years after all the loans made on the MPN are satisfied. 34 CFR 674.19(e)(4) Condition: Instances were identified where a Perkins master promissory note could not be located by the College. Cause: Lack of administrative oversight with respect to Perkins Loan record retention. Effect or Potential Effect: The College is not in compliance with Perkins Loan record retention requirements. Questioned Costs: None. Context: For 3 of 24 students selected for testing, the College was unable to locate Perkins master promissory note. Identification as a Repeat Finding: This is a repeat finding of prior year finding 2022-010. Recommendation: We recommend the College keep inventory of Perkins MPN records kept on campus. Views of Responsible Officials:

Corrective Action Plan

Individuals Responsible for Corrective Action Plan Daniel Hall (Interim Vice President for Finance and Administration) Libby Shull, CPA (Controller) April Baur (Director of Student Financial Aid) Kevin Crider (Chief Information Officer) Vicky Wilson (Registrar) Finding 2023-006 For 3 of 24 students selected for testing, the College was unable to locate Perkins master promissory note. Corrective Action Plan: The College maintains all Perkins promissory notes in alphabetical order, in a dedicated filing cabinet, in a fireproof vault. This finding relates to promissory notes that were signed in 1987, 2006, and 2016, and the College is not aware of what may have caused these promissory notes to be misplaced. No further action is planned by Management as the Perkins Loan Program expired on September 30, 2017 and no additional Perkins Loan disbursements were made by the College since the Program’s expiration.

Categories

Special Tests & Provisions Student Financial Aid Equipment & Real Property Management Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
10.766 Community Facilities Loans and Grants $58.41M
84.268 Federal Direct Student Loans $15.54M
84.063 Federal Pell Grant Program $1.45M
21.027 Coronavirus State and Local Fiscal Recovery Funds $593,347
84.033 Federal Work-Study Program $129,877
93.859 Biomedical Research and Research Training $121,441
84.007 Federal Supplemental Educational Opportunity Grants $107,905
47.050 Geosciences $52,754
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $7,544
43.008 Undergraduate Student Research Award $7,500
43.008 Space Grant Campus Director $1,500
84.038 Federal Perkins Loan Program $0