Finding Text
Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loans Assistance Listing Number: 84.038 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2021-2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and 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 2 out of 13 Perkins files tested, the MPN was not retained on file. Questioned Costs: None. Context: The MPNs for the two students were not kept for at least three years as required by the regulation. 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: Yes, 2021-004 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: There is no disagreement with the audit finding.