Finding Text
Federal Agency: Department of Education
Federal Program Title: Student Financial Assistance Cluster
Federal Assistance Listing Number: Various
Federal Award Identification Number and Year: N/A
Pass-Through Agency: N/A
Pass-Through Number: N/A
Award Period: June 1, 2023 – May 31, 2024
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 and the institution shall provide the student with certain repayment information.
Condition: During our testing, we noted that none of the students tested in the Perkins loan program could be supported as having completed a promissory note or entrance counseling.
Questioned Costs: None
Context: During our testing, it was noted the College was unable to find MPNs for any student with Perkins that have not been assigned.
Cause: The College is not able to locate the MPNs for outstanding Perkins loans that have not already been assigned.
Effect: The College cannot provide documentation showing proper completion of promissory note as required by DOE requirements.
Repeat Finding: No
Auditor’s Recommendation: We recommend that the College review their records to locate the missing promissory notes. If the signed promissory notes cannot be located, the College should assess if there is sufficient documentation to support the loan such as repayment history, documentation showing the original payment was accepted by the student, etc.
Views of Responsible Officials and Planned Corrective Actions: There is no disagreement with the audit finding.