FAC Explorer

Finding 517972 (2024-002)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-01-07
Audit: 336229
Organization: Mount Mercy University (IA)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University failed to retain Master Promissory Notes (MPNs) for three Perkins loan files, violating federal recordkeeping regulations.
  • Impacted Requirements: According to 34 CFR 674.19(e), MPNs must be kept for three years after loans are paid in full.
  • Recommended Follow-Up: Establish a procedure to ensure all MPNs are retained for the required period to maintain compliance.

Finding Text

Federal Agency: Department of Education Federal Program Title: Student Financial Assistance Cluster Assistance Listing Number: 84.038, 84.268, 84.033, 84.007, 84.063, 84.268, 93.264 Award Period: July 1, 2023 through June 30, 2024 Type of Finding: • Significant Deficiency in Internal Control Over Compliance • Other Matter 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. An original electronically signed MPN must be retained by the institution for three years after all the loans made on the MPN are satisfied. Condition: During our testing, we noted for 3 out of 49 Perkins files tested, the MPN was not retained on file. These files were paid in full and the original MPN was sent to the borrower with the paid in full communication. Questioned Costs: None reported Context: The MPNs for the three students were not kept for at least three years as required by the regulation. Cause: The loans were paid in full, and the University was not aware of the requirement to retain a copy of the MPN for at least three years after the loan was satisfied. Effect: The University was not in compliance with the Perkins recordkeeping regulations. Repeat Finding: Yes Recommendation: We recommend the University implement a procedure moving forward to ensure that all necessary MPN’s are retained for at least three years after payment in accordance with the federal regulation. 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

  • 517958 2024-001
    Significant Deficiency Repeat
  • 517959 2024-001
    Significant Deficiency Repeat
  • 517960 2024-001
    Significant Deficiency Repeat
  • 517961 2024-001
    Significant Deficiency Repeat
  • 517962 2024-001
    Significant Deficiency Repeat
  • 517963 2024-001
    Significant Deficiency Repeat
  • 517964 2024-001
    Significant Deficiency Repeat
  • 517965 2024-001
    Significant Deficiency Repeat
  • 517966 2024-002
    Significant Deficiency Repeat
  • 517967 2024-002
    Significant Deficiency Repeat
  • 517968 2024-002
    Significant Deficiency Repeat
  • 517969 2024-002
    Significant Deficiency Repeat
  • 517970 2024-002
    Significant Deficiency Repeat
  • 517971 2024-002
    Significant Deficiency Repeat
  • 517973 2024-002
    Significant Deficiency Repeat
  • 517974 2024-003
    Significant Deficiency Repeat
  • 517975 2024-003
    Significant Deficiency Repeat
  • 517976 2024-003
    Significant Deficiency Repeat
  • 517977 2024-003
    Significant Deficiency Repeat
  • 517978 2024-003
    Significant Deficiency Repeat
  • 517979 2024-003
    Significant Deficiency Repeat
  • 517980 2024-003
    Significant Deficiency Repeat
  • 517981 2024-003
    Significant Deficiency Repeat
  • 1094400 2024-001
    Significant Deficiency Repeat
  • 1094401 2024-001
    Significant Deficiency Repeat
  • 1094402 2024-001
    Significant Deficiency Repeat
  • 1094403 2024-001
    Significant Deficiency Repeat
  • 1094404 2024-001
    Significant Deficiency Repeat
  • 1094405 2024-001
    Significant Deficiency Repeat
  • 1094406 2024-001
    Significant Deficiency Repeat
  • 1094407 2024-001
    Significant Deficiency Repeat
  • 1094408 2024-002
    Significant Deficiency Repeat
  • 1094409 2024-002
    Significant Deficiency Repeat
  • 1094410 2024-002
    Significant Deficiency Repeat
  • 1094411 2024-002
    Significant Deficiency Repeat
  • 1094412 2024-002
    Significant Deficiency Repeat
  • 1094413 2024-002
    Significant Deficiency Repeat
  • 1094414 2024-002
    Significant Deficiency Repeat
  • 1094415 2024-002
    Significant Deficiency Repeat
  • 1094416 2024-003
    Significant Deficiency Repeat
  • 1094417 2024-003
    Significant Deficiency Repeat
  • 1094418 2024-003
    Significant Deficiency Repeat
  • 1094419 2024-003
    Significant Deficiency Repeat
  • 1094420 2024-003
    Significant Deficiency Repeat
  • 1094421 2024-003
    Significant Deficiency Repeat
  • 1094422 2024-003
    Significant Deficiency Repeat
  • 1094423 2024-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $1.72M
84.268 Federal Direct Student Loans $1.26M
84.038 Perkins Loan Program $386,945
84.033 Federal Work-Study Program $171,603
84.007 Federal Supplemental Educational Opportunity Grants $118,124
93.264 Nurse Faculty Loan Program (nflp) $104,129
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $54,694