Finding 5737 (2023-002)

Federal Program Name: Student Financial Assistance Cluster Federal Agency: U.S. Department of Education Federal Assistance Listing Title and Number: Student Financial Assistance Cluster, 84.038 Award Year: July 1, 2022 – June 30, 2023 Criteria or Specific Requirement: Special Tests and Provisions – Perkins Loan Record Keeping and Record Retention Condition: The College did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Question Costs: None Context: During testing of Perkins loan record keeping and record retention, 2 out of 22 outstanding loan selections and 2 our of 16 retired/assign loan selections did not have records of the related master promissory note (MPN). From a population of 217 outstanding loans 22 were selected for outstanding loan testing. Errors consisted of 2 students for which the College did not have records of their MPN. Additionally from a population of 155 retired/assigned loans 16 were selected for retired/assign loan testing. Errors consisted of 2 students for which the College did not have records of their MPN. Our sample selection was not, and was not intended to be statistically valid. Effect: The College does not have documentation of MPNs for the errors identified. Cause: The MPNs for these students were not able to be located in Perkins loan files. Repeat Finding: No Recommendation: The College should revisit the record retention for student related files, particularly those that relate to federal compliance requirements. Views of Responsible Officials and Planned Corrective Action: The College agrees with the comment and has developed a plan to correct the finding. The College will examine the document destruction date on student related files related to federal compliance requirements to ensure accuracy of the document destruction date and accuracy of student files.