Finding Text
Federal Program Information: Federal Perkins Loans (ALN #84.038) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): Special Tests and Provisions ? Perkins Loan Record Retention: An institution shall keep the original promissory notes and repayment schedules until the loans are satisfied. If required to release original documents in order to enforce the loan, the institution must retain certified true copies of those documents. (i) An institution shall keep the original paper promissory note or original paper MPN and repayment schedules in a locked, fireproof container. (ii) If a promissory note was signed electronically, the institution must store it electronically and the promissory note must be retrievable in a coherent format. An original electronically signed MPN must be retained by the institution for 3 years after all the loans made on the MPN are satisfied. 34 CFR 674.19(e)(4) Condition: Instance was identified where a Perkins master promissory note could not be located by the College. Cause: Lack of administrative oversight with respect to Perkins Loan record retention. Effect: The College is not in compliance with Perkins Loan record retention requirements. Questioned Costs: None. Context: For 1 of 25 students selected for testing, the College was unable to locate Perkins master promissory note. Identification as a Repeat Finding: There was no similar finding identified during the prior year. Recommendation: We recommend the College keep inventory of Perkins MPN records kept on campus. Views of Responsible Officials and Planned Corrective Actions: The College maintains all Perkins promissory notes in alphabetical order, in a dedicated filing cabinet, in a fireproof vault. This finding relates to a promissory note that was signed in 1987 and the College is not aware of what may have caused this Promissory note to be misplaced. No further action is planned by Management as the Perkins Loan Program expired on September 30, 2017 and no additional Perkins Loan disbursements were made by the College since the Program?s expiration.