Finding 577646 (2023-001)

Information on the federal program: U.S. Department of Education Student Financial Assistance Cluster for the award year June 30, 2023 (Assistance Listing Number 84.038) Criteria or specific requirement: Special Tests and Provisions – Perkins Loan Record Keeping and Records Retention – Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The Institute did not maintain Perkins loan records in the manner set forth in 34 CFR 674.19.(e). (Other Instance of Noncompliance) Questioned costs: none Context: During testing of Perkins loan record keeping and record retention, 8 out of 25 selections did not have records of the related master promissory note (MPN). From a population of 366 students, 25 were selected for testing. Errors consisted of 8 students for which the Institute did not have records of their MPN. Our sample selection was not, and was not intended to be, statistically valid. Effect: The Institute does not have documentation of MPNs for the errors identified. Cause: The MPNs for these eight students had been destroyed due to a labeling error of the document destruction date on these boxes. Identification as a repeat finding, if applicable: repeat of finding 2022-001 Recommendation: The Institute should revisit the record retention for student related files, particularly those that relate to federal compliance requirements. Views of responsible officials and planned corrective actions: The Institute agrees with the comment and has developed a plan to correct the finding. The Institute has examined the documented destruction date on the other student related files related to federal compliance requirements to ensure accuracy of the document destruction date.