Finding 555631 (2023-012)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2025-04-22
Audit: 354200
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The College could not find two promissory notes for Perkins Loans, violating retention requirements.
  • Impacted Requirements: Institutions must keep promissory notes and repayment records as per 34 CFR 674.19.
  • Recommended Follow-Up: Develop and implement detailed controls to ensure compliance with federal grant requirements.

Finding Text

U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N7) Perkins Condition: The College could not locate two (2) promissory notes out of twenty-seven (27) people tested. Criteria: Per 34 CFR 674.19, institutions must retain promissory and master promissory notes, and repayment records for each Perkins Loan program loan made. Cause: Management was not aware of the document retention requirements and did not establish proper physical security controls over the original promissory notes. Effect: The College is unable to prove the validity of amounts borrowed under these loans. Repeat Finding: Not a repeat finding Recommendation: RBT suggests that the College develop and follow detailed controls over grant federal requirements. Perspective: This issue does not appear to be systemic as original promissory notes were provided for the other selections. Management’s Response: See corrective action plan.

Corrective Action Plan

The College will develop and followed detailed controls over grants, federal requirements accomplished by 6‐1‐2025.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 555627 2023-008
    Material Weakness Repeat
  • 555628 2023-009
    Significant Deficiency
  • 555629 2023-010
    Material Weakness
  • 555630 2023-011
    Significant Deficiency
  • 555632 2023-013
    Significant Deficiency
  • 1132069 2023-008
    Material Weakness Repeat
  • 1132070 2023-009
    Significant Deficiency
  • 1132071 2023-010
    Material Weakness
  • 1132072 2023-011
    Significant Deficiency
  • 1132073 2023-012
    -
  • 1132074 2023-013
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.26M
84.425 Education Stabilization Fund $1.72M
84.268 Federal Direct Student Loans $1.40M
84.038 Federal Perkins Loan Program_federal Capital Contributions $419,625
84.048 Career and Technical Education -- Basic Grants to States $96,792
84.033 Federal Work-Study Program $46,052
84.007 Federal Supplemental Educational Opportunity Grants $38,700