Finding 42633 (2022-001)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-01-03
Audit: 47260
Organization: Quinnipiac University (CT)
Auditor: Marcum LLP

AI Summary

  • Core Issue: The University failed to keep original promissory notes for six out of seven students in repayment, violating Perkins Loan Program requirements.
  • Impacted Requirements: Institutions must retain original promissory notes until loans are fully satisfied, which was not met due to control breakdowns.
  • Recommended Follow-Up: Implement stronger controls for managing promissory notes and regularly review loan documents for compliance.

Finding Text

Grantor: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Criteria and Condition Under the Perkins Loan Program, institutions are required to keep the original promissory notes until the loans are satisfied. Context For six out of seven students in repayment tested, the University was unable to produce original promissory notes. These notes originated at various time between 1992 and 2011. Cause A breakdown of controls over promissory notes occurred during departmental reorganizations, office moves, and the assignment process of the loan program which caused the original promissory notes to be erroneously discarded or misplaced. Potential Effect Failure to maintain the original promissory notes puts the University at risk that the loans will not be accepted when assigned. Recommendation We recommend strengthening controls around promissory notes and ongoing review of loan documents for federal loan recipients. Views of Responsible Officials and Planned Corrective Actions Management agrees with the finding and the reader?s attention is directed to the corrective action plan.

Corrective Action Plan

As part of the assignment of Perkins Loans, we noted that the assignment process required the submission of original promissory notes for each loan to be assigned. As a result, the University began collecting and digitizing its historic loan records to maintain copies for retention and compliance purposes. The assignment process is currently underway and is required to be completed by June 30, 2023. The University is on track to meet that federal imposed deadline. Quinnipiac University agrees with the finding. A small percentage of the remaining loans to be assigned originated over 10 years ago. As it relates to this finding, we were unable to locate promissory notes for six students with loans originated 10 to 30 years ago. Due to their age, we believe the finding may be related to office moves and departmental reorganizations over the years. As a result of this finding and the federal assignment process in general, Management and Financial Aid have performed a comprehensive review of the remaining student records waiting to be assigned for completeness. As a result of this review Management and Financial Aid have identified all loans that are missing original promissory notes. As part of the assignment process, in lieu of original promissory notes alternative documents supporting the existence of these loans have been provided to the Perkins loan assignment processor. Any loans that are not accepted during this appeals process will be purchased by the University at the conclusion of the assignment process, which is planned to be completed by June 30, 2023. If the Office of Management and Budget have questions regarding this plan, please reach out to Stephen Allegretto, the Associate Vice President for Finance and Controller, who is responsible for ensuring this corrective action plan is implemented, at 203-582-7962.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 619075 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $105.74M
84.425 Higher Education Emergency Relief Fund (institutional) $11.81M
84.425 Higher Education Emergency Relief Fund (student) $5.55M
84.063 Federal Pell Grant Program $4.60M
84.007 Federal Supplemental Educational Opportunity Grants $2.00M
84.038 Federal Perkins Loan Program $1.09M
84.033 Federal Work-Study Program $656,995
21.019 Coronavirus Relief Fund $611,875
93.155 Rural Health Research Centers $319,106
84.425 Connecticut Roberta B. Willis Scholarship Program: Arpa Supplement $309,136
93.866 Aging Research $109,198
21.008 Low Income Taxpayer Clinics $100,000
10.435 State Mediation Grants $67,022
84.425 Education Stabilization Fund- Ct Sde- Entrepreneurship $42,750
84.425 Education Stabilization Fund- Ct Sde- Data Science $39,000
84.425 Education Stabilization Fund- Ct Sde- Health Sci $23,844
47.075 Social, Behavioral, and Economic Sciences $17,720
93.124 Nurse Anesthetist Traineeships $17,588
84.425 Education Stabilization Fund- Ct Sde- Med Micro $8,505
84.425 Education Stabilization Fund- Ct Sde- Media Prod $4,625
93.879 Medical Library Assistance $4,202