FAC Explorer

Finding 3938 (2023-007)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2023-12-12
Audit: 6218
Organization: Presentation College (SD)
Auditor: Eide Bailly LLP

AI Summary

  • Core Issue: Presentation College failed to keep required records for the Federal Perkins Loan Program, leading to a buyback of loans.
  • Impacted Requirements: The Department of Education mandates that institutions maintain original records for specified timeframes after loans are paid off or canceled.
  • Recommended Follow-Up: No further action is needed as the College has closed and liquidated the Perkins Loan Program.

Finding Text

Department of Education Student Financial Aid Cluster CFDA # 84.038 – Federal Perkins Loan Program Unknown Award Year Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention – Significant Deficiency in Internal Controls over Compliance Criteria: As required by the Department of Education, institutions are required to maintain original proper records for various required timeframes after loans or paid off, forgiven or cancelled. Condition: Presentation College did not maintain all records as required under the program and, as a result, subsequent to year-end, the College was required to buy back specific Perkins Loans that did not have proper documentation maintained. Cause: The College has seen significant turnover in the financial aid director role for many years and not all documentation was maintained with that turnover. Effect: The College was required to buy back a portion of the Perkins Loans. Questioned Costs: None Context/Sampling: Sampling was not used. Repeat Finding from Prior Year(s): No Recommendation: Based on the College closure, the College has liquated the Federal Perkins Loan Program and no further corrective action is needed with this finding. Views of Responsible Officials: Management agrees with the finding.

Corrective Action Plan

Finding 2023-007 Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention Federal Agency Name: Department of Education Program Name: Student Financial Aid Cluster CFDA # 84.038 – Federal Perkins Loan Program Finding Summary: We did not maintain all records as required under the program and as a result, subsequent to yearend, were required to buy back specific Perkins Loans that did not have proper documentation maintained. Responsible Individuals: Jillaine Smith, Chief Operating Officer, Erin Drew, Facilitator of Advancement Services and Patty Pietz, Presentation Sisters Accountant. Corrective Action Plan: All loan documentation was provided to Department of Education as part of the liquidation process and any loans that did not have proper documentation were purchased back by the College in September 2023 and the Perkins Liquidation was complete with final reporting requirements completed. Anticipated Completion Date: September 30, 2023

Categories

Special Tests & Provisions Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 3930 2023-006
    Significant Deficiency
  • 3931 2023-003
    Material Weakness Repeat
  • 3932 2023-004
    Significant Deficiency Repeat
  • 3933 2023-005
    Significant Deficiency
  • 3934 2023-006
    Significant Deficiency
  • 3935 2023-006
    Significant Deficiency
  • 3936 2023-003
    Material Weakness Repeat
  • 3937 2023-006
    Significant Deficiency
  • 3939 2023-003
    Material Weakness Repeat
  • 3940 2023-005
    Significant Deficiency
  • 3941 2023-006
    Significant Deficiency
  • 580372 2023-006
    Significant Deficiency
  • 580373 2023-003
    Material Weakness Repeat
  • 580374 2023-004
    Significant Deficiency Repeat
  • 580375 2023-005
    Significant Deficiency
  • 580376 2023-006
    Significant Deficiency
  • 580377 2023-006
    Significant Deficiency
  • 580378 2023-003
    Material Weakness Repeat
  • 580379 2023-006
    Significant Deficiency
  • 580380 2023-007
    Significant Deficiency
  • 580381 2023-003
    Material Weakness Repeat
  • 580382 2023-005
    Significant Deficiency
  • 580383 2023-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $2.87M
84.063 Federal Pell Grant Program $836,094
84.038 Federal Perkins Loan Program $261,044
84.007 Federal Supplemental Educational Opportunity Grants $39,365
84.033 Federal Work-Study Program $30,385