Finding 611387 (2022-001)

-
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-11-29
Audit: 32794
Auditor: Forvis LLP

AI Summary

  • Core Issue: The College failed to maintain Perkins loan records as required by federal regulations.
  • Impacted Requirements: Noncompliance with 34 CFR 674.19(e) regarding recordkeeping for master promissory notes (MPNs).
  • Recommended Follow-Up: The College should improve its record retention practices to ensure compliance with federal requirements.

Finding Text

Information on the federal program: U.S. Department of Education Student Financial Assistance Cluster for the award year June 30, 2022 (Assistance Listing Number 84.038) Criteria or specific requirement: Special Tests and Provisions ? Perkins Loan Recordkeeping and Record Retention ? Institutions are required to properly maintain its Perkins loan records in the manner set forth in 34 CFR 674.19.(e). Condition: The College 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 recordkeeping and record retention, 8 out or 25 selections did not have records of the related master promissory note (MPN). From a population of 564 students, 25 were selected for testing. Errors consisted of 8 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 eight students had been destroyed due to a labeling error of the document destruction date on the boxes. Identification as a repeat finding, if applicable: not applicable. 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 actions: The College agrees with the comment and has developed a plan to correct the finding.

Categories

Special Tests & Provisions Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $10.68M
84.038 Federal Perkins Loan Program $2.98M
84.425 Education Stabilization Fund $1.47M
84.063 Federal Pell Grant Program $1.17M
97.036 Disaster Grants - Public Assistance (presidentially Declared Disasters) $754,643
84.033 Federal Work-Study Program $276,145
84.007 Federal Supplemental Educational Opportunity Grants $184,992
47.041 Engineering $78,324
47.049 Mathematical and Physical Sciences $61,203
59.075 Shuttered Venue Operators Grant Program $54,106
47.076 Education and Human Resources $28,569
45.310 Grants to States $24,857
19.415 Professional and Cultural Exchange Programs - Citizen Exchanges $9,411
45.025 Promotion of the Arts_partnership Agreements $4,232
66.460 Nonpoint Source Implementation Grants $538