Finding Text
Criteria: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned Costs: None. Context: During testing of Perkins loan recordkeeping and record retention, for open loans at year end 5/31/22, 5 of 25 selections did not have records of the related master promissory note (MPN). A sample of 25 were selected for testing from a population of 384. For loans retired or assigned within the previous three years, 4 of 19 selections did not have records of the related MPN. A sample of 19 were selected for testing from a population of 182. Our sample selection was not, and was not intended to be, statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The College?s processes did not ensure MPNs were properly retained. Identification as a Repeat Finding, if Applicable: N/A Recommendation: The College should revisit the record retention for student related files. Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the findings. Effective with the Fiscal Year 2014, the College engaged with a third-party provider which put the Perkins loan processing on a digital platform. The College will review its record storage system of both hardcopy documentation as well as digital document storage and access for protection, preservation and completeness. Further the College will perform an inventory of loan documents currently in storage to identify additional files that are missing master promissory notes. Anticipated Completion Date: May 31, 2023