Finding Text
Finding 2024-001 - Significant Deficiency, Compliance
Federal Assistance Listing No. 84.038
U.S. Department Of Education
Student Financial Aid Cluster – Perkins Loans
Criteria: According to the Federal Student Aid Handbook, Volume 2, Chapter 6, a University must retain promissory and master promissory notes (MPN), and repayment
records for each Perkins Loan Program loan made. The original promissory notes and repayment schedules must be kept until loans are satisfied.
Condition: In our nonstatistical sample of 25 students, it was noted for one individual that the master promissory note (MPN) was not able to be located by management and
provided to us for testing.
Cause: Management charged with oversight did not have proper processes and related controls in place for proper record retention.
Effect: A student’s original MPN associated with the Perkin Loan is unable to be located.
Questioned Costs: There were no questioned costs to report as this finding relates only to record retention and is not related to eligibility.
Context: The student’s MPN was not able to be located when requested as part of our testing procedures.
Identification As A Repeat Finding: Not applicable.
Recommendation: The Financial Aid department should review and consider revisions to its processes and related controls in place surrounding record retention.
Views Of Responsible Officials/Corrective Action Plan (Unaudited): The University concurs with this finding. The Financial Aid Office has updated procedures
and ensures all student files have a thorough examination of all documents prior to document retention review. All MPNs and Perkins-related documents are now identified
in this review and subsequently stored separately in secure fireproof storage. The files relating to this finding were not appropriately retained and the current procedure would
have identified these for continued records retention.
Completion Date: June 2025
Contact Person: Dane Fuhrman, CFO