Finding Text
Department of Education
Student Financial Aid Cluster
CFDA # 84.038 – Federal Perkins Loan Program
Unknown Award Year
Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention –
Significant Deficiency in Internal Controls over Compliance
Criteria: As required by the Department of Education, institutions are required to maintain original proper records for various required timeframes after loans or paid off, forgiven or cancelled.
Condition: Presentation College did not maintain all records as required under the program and, as a result, subsequent to year-end, the College was required to buy back specific Perkins Loans that did not have proper documentation maintained.
Cause: The College has seen significant turnover in the financial aid director role for many years and not all documentation was maintained with that turnover.
Effect: The College was required to buy back a portion of the Perkins Loans.
Questioned Costs: None
Context/Sampling: Sampling was not used.
Repeat Finding from Prior Year(s): No
Recommendation: Based on the College closure, the College has liquated the Federal Perkins Loan Program and no further corrective action is needed with this finding.
Views of Responsible Officials: Management agrees with the finding.