FAC Explorer

Finding 52230 (2022-001)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 43905
Organization: University of Hartford (CT)
Auditor: Cliftonlarsonallen LLP

AI Summary

  • Core Issue: The University failed to locate original promissory notes for 7 out of 40 open Perkins loans tested.
  • Impacted Requirements: Institutions must retain original promissory notes and repayment schedules until loans are satisfied, as per federal regulations.
  • Recommended Follow-Up: The University should review and improve its recordkeeping and retention policies to ensure compliance.

Finding Text

2022-001 ? Perkins Loan Recordkeeping and Record Retention Federal Agency: U.S. Department of Education Federal Program Title: Federal Perkins Loan Program Federal Assistance Listing Number: 84.038 Award Period: 7/1/2021 ? 6/30/2022 Type of Finding: Significant Deficiency in Internal Control Over Compliance, Other Matters Criteria or specific requirement: An institution shall keep original promissory notes and repayment schedules until Perkins loans are satisfied. If required to release original documents in order to enforce the loan, the institution must retain certified true copies of those documents. An institution shall keep the original paper promissory note or original paper MPN and repayment schedules in a locked, fireproof container (34 CFR 674.19(e)(4)). Condition: Original promissory notes were unable to be located. Questioned costs: None. Context: During our testing, we noted 7 instances out of 40 open Perkins loans tested where the University was unable to locate the original promissory note. Cause: The University did not have the appropriate policies and procedures in place when Perkins loans were awarded to students in order to ensure that recordkeeping and retention regulations were being followed. Effect: Open loan balances for these loans are not supported by an original promissory note. Repeat finding: No. Recommendation: We recommend the University evaluate its procedures and policies around recordkeeping and record retention. Views of responsible officials: Management agrees with the finding.

Corrective Action Plan

2022-001 Student Financial Assistance Cluster ? Federal Assistance Listing No. 84.038 Recommendation: We recommend the University evaluate is procedures and policies around recordkeeping and retention. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management have reviewed their policies and procedures in regards to recordkeeping and retention of Perkins loan documents. Assigned and Retired Perkins loans are maintained in a locked, fireproof container in the Bursar office. The repayment schedules are electronically kept in our borrower files in Heartland ECSI. In addition, the Perkins loan program expired September 30, 2017. Name(s) of the contact person(s) responsible for corrective action: Diane Purcell, Bursar Senior Accountant, (860) 768-4361 Planned completion date for corrective action plan: March 2023

Categories

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

Other Findings in this Audit

  • 52228 2022-002
    Significant Deficiency
  • 52229 2022-002
    Significant Deficiency
  • 52231 2022-002
    Significant Deficiency
  • 52232 2022-002
    Significant Deficiency
  • 52233 2022-003
    Significant Deficiency Repeat
  • 52234 2022-002
    Significant Deficiency
  • 52235 2022-003
    Significant Deficiency Repeat
  • 628670 2022-002
    Significant Deficiency
  • 628671 2022-002
    Significant Deficiency
  • 628672 2022-001
    Significant Deficiency
  • 628673 2022-002
    Significant Deficiency
  • 628674 2022-002
    Significant Deficiency
  • 628675 2022-003
    Significant Deficiency Repeat
  • 628676 2022-002
    Significant Deficiency
  • 628677 2022-003
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $43.48M
84.063 Federal Pell Grant Program $5.70M
84.425 Education Stabilization Fund $3.64M
84.038 Federal Perkins Loan Program $3.48M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $906,726
43.008 Education $677,995
84.007 Federal Supplemental Educational Opportunity Grants $591,926
84.033 Federal Work-Study Program $356,732
59.043 Women's Business Ownership Assistance $277,385
14.218 Community Development Block Grants/entitlement Grants $50,000
47.041 Engineering $44,516
84.215 Fund for the Improvement of Education $39,999
47.076 Education and Human Resources $29,557
12.420 Military Medical Research and Development $22,872
93.191 Graduate Psychology Education Program and Patient Navigator and Chronic Disease Prevention Program $21,984
84.037 Federal Perkins Loan Cancellations $19,272
93.110 Maternal and Child Health Federal Consolidated Programs $18,825
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $8,801
12.300 Basic and Applied Scientific Research $3,699
11.417 Sea Grant Support $2,603
20.205 Highway Planning and Construction $100