Finding 45477 (2022-004)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-28
Audit: 46373
Organization: Union College (NE)

AI Summary

  • Core Issue: The College failed to secure signed Perkins promissory notes for 13 out of 34 students tested, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 674.16, which mandates that students must sign promissory notes before receiving funds.
  • Recommended Follow-Up: Establish a procedure to ensure all students sign promissory notes before disbursement and implement a record retention system for these documents.

Finding Text

2022-004 Perkins Promissory Notes Federal Agency: U.S. Department of Education Federal Program Title: Higher Education Emergency Relief Funds ALN Number: 84.038 Award Period: June 01, 2021 through May 31, 2022 Type of Finding: - Significant Deficiency in Internal Control over Compliance - Other Matters Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 674.16 states that before an institution makes its first disbursement to a student, the student shall sign the promissory note. Condition: Perkins Promissory Note - During our testing of the Student Financial Aid Cluster, we noted that 13 student out of 34 tested in the Perkins loan program could not be supported as having completed a promissory note. Questioned Costs: None Context: Many of the missing promissory notes were old and could not be located in paper or electronic files. Cause: The College did not have a process in place to ensure promissory notes were appropriately retained either in paper or electronic format. Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements. Repeat finding: No Recommendation: We recommend that the College put a procedure in place to ensure that all students have a promissory note prior to disbursing of funds. Also recommend a procedure be put in place to ensure proper record retention documenting the completion of promissory note. Views of responsible officials: There is no disagreement with the audit finding.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 45474 2022-002
    Significant Deficiency Repeat
  • 45475 2022-004
    Significant Deficiency
  • 45476 2022-002
    Significant Deficiency Repeat
  • 45478 2022-002
    Significant Deficiency Repeat
  • 45479 2022-002
    Significant Deficiency Repeat
  • 45480 2022-002
    Significant Deficiency Repeat
  • 45481 2022-002
    Significant Deficiency Repeat
  • 45482 2022-002
    Significant Deficiency Repeat
  • 45483 2022-003
    Significant Deficiency
  • 45484 2022-003
    Significant Deficiency
  • 45485 2022-003
    Significant Deficiency
  • 621916 2022-002
    Significant Deficiency Repeat
  • 621917 2022-004
    Significant Deficiency
  • 621918 2022-002
    Significant Deficiency Repeat
  • 621919 2022-004
    Significant Deficiency
  • 621920 2022-002
    Significant Deficiency Repeat
  • 621921 2022-002
    Significant Deficiency Repeat
  • 621922 2022-002
    Significant Deficiency Repeat
  • 621923 2022-002
    Significant Deficiency Repeat
  • 621924 2022-002
    Significant Deficiency Repeat
  • 621925 2022-003
    Significant Deficiency
  • 621926 2022-003
    Significant Deficiency
  • 621927 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Loan Program $6.88M
84.063 Pell Grant Program $1.11M
84.425F Heerf Institutional Portion $1.07M
84.038 Federal Perkins Loan Program - Beginning Balance $1.07M
84.425E Heerf Student Aid Portion $1.06M
93.364 Nursing Student Loan Program - Beginning Balance $306,370
84.033 Federal Work Study Program $145,190
84.007 Federal Supplemental Educational Opportunity Grant Program $138,396
84.425M Heerf Strengthening Institutions Program $49,928
84.038 Federal Perkins Loan Program - Loans Issued $0