Finding Text
Assistance Listing Number, Federal Agency, and Program Name - 84.038; U.S. Department of Education; Student Financial Assistance Cluster; Federal Perkins Loan Program
Federal Award Identification Number and Year - June 1, 2021 to May 31, 2022
Finding Type - Significant deficiency and material noncompliance with laws and regulations
Repeat Finding - No
Criteria - In accordance with 34 CFR 674.19.(e), institutions must retain true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan (including Defense, NDSL) made.
Condition - Our audit procedures identified instances of MPNs not being properly maintained.
Questioned Costs - None
Context - During our testing of nine students, we noted one student for whom a MPN could not be located.
Cause and Effect - The School does not have a process in place to ensure all MPNs are maintained as required.
Improper maintenance of MPNs resulted in noncompliance with federal regulations.
Recommendation - We recommend the School strengthen its processes and controls over the maintenance of MPNs.
Views of Responsible Officials and Corrective Action Plan - There is no disagreement with the audit finding. The Iliff School of Theology has contracted with a professional, third party processing company to administer its student assistance programs. The School has also ensured that this third party processor is properly reviewing MPNs to meet federal requirements.