Finding 571814 (2024-008)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2024
Accepted
2025-07-23
Audit: 362826
Auditor: Rbt CPAS

AI Summary

  • Core Issue: The College is not storing original paper promissory notes securely, violating federal regulations.
  • Impacted Requirements: Compliance with 34 CFR 674.19, which mandates secure storage of financial documents.
  • Recommended Follow-up: Implement detailed controls for document security and ensure management is aware of retention requirements.

Finding Text

Finding 2024-008 U.S. Department of Education Student Financial Aid Cluster 84.038 84.038 does not have a FAIN # on the USASpending.gov website Requirements: (N8) Perkins Condition: The College does not keep the original paper promissory notes in a locked fireproof container. The notes are stored in boxes in storage areas. Criteria: Per 34 CFR 674.19, institutions are required to keep original paper promissory notes and repayment schedules in a locked fireproof container. 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 documents could be lost or damaged. Repeat Finding: Repeat of 2023-011 Recommendation: RBT suggests that the College develop and follow detailed controls over securing these documents. Perspective: This issue appears to be systemic since it impacted all promissory notes. Management’s Response: See corrective action plan.

Corrective Action Plan

(N8) Perkins The College will seek to be in compliance with all storage needs and familiarize itself with federal requirements. Documents will be kept in fireproof containers by the end of 2025. This will be over seen by the Vice president for administrative services Sean Welsh and the Director of Financial Aid Keri Whitehead

Categories

No categories assigned yet.

Other Findings in this Audit

  • 571815 2024-009
    Material Weakness Repeat
  • 571816 2024-010
    Material Weakness
  • 1148256 2024-008
    Material Weakness Repeat
  • 1148257 2024-009
    Material Weakness Repeat
  • 1148258 2024-010
    Material Weakness

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $2.69M
84.268 Federal Direct Student Loans $1.29M
84.038 Federal Perkins Loan Program_federal Capital Contributions $242,629
84.048 Career and Technical Education -- Basic Grants to States $150,273
84.425 Education Stabilization Fund $135,234
84.033 Federal Work-Study Program $46,052
84.007 Federal Supplemental Educational Opportunity Grants $39,350