FAC Explorer

Finding 619351 (2022-008)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-03-30
Audit: 51591
Organization: South Carolina State University (SC)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to keep required Perkins Loan repayment schedules for 6 out of 25 students, violating recordkeeping rules.
  • Impacted Requirements: Compliance with Perkins Loan Recordkeeping and Record Retention standards, including proper storage and retention of original documents.
  • Recommended Follow-Up: Enhance internal controls and engage IT consultants to improve access to older loan records and ensure compliance.

Finding Text

Identification of the Federal Program: Federal Perkins Loan Program (Assistance Listing #: 84.038) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions - Perkins Loan Recordkeeping and Record Retention: Institutions are required to keep original paper promissory notes or original paper master promissory notes and repayment schedules in a locked, fireproof container. The original promissory notes and repayment schedules must be kept 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. After the loan obligation is satisfied, the institution shall return the original or a true and exact copy of the note marked "paid in full" to the borrower, or otherwise notify the borrower in writing that the loan is paid in full and retain a copy for the prescribed period. When an institution uses a third-party servicer for its Perkins Loan program, the institution must perform due diligence to ensure that the third party servicer is in compliance with the requirements for the functions the third party servicer is performing for the school. Condition: For 6 students selected for testing, the University was unable to provide evidence that the student?s Perkins Loan repayment schedule was retained as required. Cause: Administrative and internal control oversight. Effect or Potential Effect: The University was not in compliance with the Perkins Loan Recordkeeping and Record Retention requirements. Questioned Costs: None. Context: For 6 of 25 students selected for Perkins Loan Recordkeeping and Record retention testing, an exception was noted. Identification as a Repeat Finding: This is a repeat or prior year finding 2021-007. Recommendation: We recommend that the University enhances its internal controls to ensure compliance with the special reporting requirements. Views of Responsible Officials: In our effort to enhance our ability to access older Perkins Loan records, we will engage our information technology consultants to research our information collection system. Currently our ability to access older Perkins Loan records is restricted due to system constraints. The findings from this engagement will be recorded and memorialized for the record.

Categories

Internal Control / Segregation of Duties Special Tests & Provisions Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 42895 2022-003
    Significant Deficiency Repeat
  • 42896 2022-007
    Significant Deficiency Repeat
  • 42897 2022-003
    Significant Deficiency Repeat
  • 42898 2022-007
    Significant Deficiency Repeat
  • 42899 2022-003
    Significant Deficiency Repeat
  • 42900 2022-007
    Significant Deficiency Repeat
  • 42901 2022-003
    Significant Deficiency Repeat
  • 42902 2022-007
    Significant Deficiency Repeat
  • 42903 2022-004
    Significant Deficiency
  • 42904 2022-005
    Significant Deficiency Repeat
  • 42905 2022-006
    Significant Deficiency
  • 42906 2022-005
    Significant Deficiency Repeat
  • 42907 2022-005
    Significant Deficiency Repeat
  • 42908 2022-006
    Significant Deficiency
  • 42909 2022-008
    Significant Deficiency Repeat
  • 619337 2022-003
    Significant Deficiency Repeat
  • 619338 2022-007
    Significant Deficiency Repeat
  • 619339 2022-003
    Significant Deficiency Repeat
  • 619340 2022-007
    Significant Deficiency Repeat
  • 619341 2022-003
    Significant Deficiency Repeat
  • 619342 2022-007
    Significant Deficiency Repeat
  • 619343 2022-003
    Significant Deficiency Repeat
  • 619344 2022-007
    Significant Deficiency Repeat
  • 619345 2022-004
    Significant Deficiency
  • 619346 2022-005
    Significant Deficiency Repeat
  • 619347 2022-006
    Significant Deficiency
  • 619348 2022-005
    Significant Deficiency Repeat
  • 619349 2022-005
    Significant Deficiency Repeat
  • 619350 2022-006
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $16.56M
84.425 Education Stabilization Fund $16.37M
84.063 Federal Pell Grant Program $7.29M
84.031 Higher Education_institutional Aid $3.52M
10.512 Agriculture Extension at 1890 Land-Grant Institutions $2.62M
10.205 Payments to 1890 Land-Grant Colleges and Tuskegee University $2.46M
93.397 Cancer Centers Support Grants $1.16M
84.007 Federal Supplemental Educational Opportunity Grants $838,989
84.263 Innovative Rehabilitation Training $485,874
15.904 Historic Preservation Fund Grants-in-Aid $457,808
10.216 1890 Institution Capacity Building Grants $426,061
10.524 Scholarships for Students at 1890 Institutions (b) $372,758
84.042 Trio_student Support Services $289,301
59.037 Small Business Development Centers $264,636
84.129 Rehabilitation Long-Term Training $253,045
84.382 Strengthening Minority-Serving Institutions $231,201
93.391 Activities to Support State, Tribal, Local and Territorial (stlt) Health Department Response to Public Health Or Healthcare Crises $191,014
84.033 Federal Work-Study Program $166,068
81.RD Department of Energy $150,198
84.120 Minority Science and Engineering Improvement $138,660
84.264 Rehabilitation Training_continuing Education $127,955
47.076 Education and Human Resources $127,230
10.500 Cooperative Extension Service $98,726
84.066 Trio_educational Opportunity Centers $82,078
10.328 National Food Safety Training, Education, Extension, Outreach, and Technical Assistance Competitive Grants Program $72,263
47.083 Integrative Activities $70,382
10.514 Expanded Food and Nutrition Education Program $62,787
20.701 University Transportation Centers Program $60,924
45.160 Promotion of the Humanities_fellowships and Stipends $60,348
84.153 Business and International Education Projects $50,002
47.049 Mathematical and Physical Sciences $44,553
10.311 Beginning Farmer and Rancher Development Program $37,384
93.243 Substance Abuse and Mental Health Services_projects of Regional and National Significance $36,975
12.598 Centers for Academic Excellence $31,753
45.313 Laura Bush 21st Century Librarian Program $24,373
93.350 National Center for Advancing Translational Sciences $22,933
10.443 Outreach and Assistance for Socially Disadvantaged and Veteran Farmers and Ranchers $22,411
10.771 Rural Cooperative Development Grants $21,359
10.912 Environmental Quality Incentives Program $11,674
10.523 Centers of Excellence at 1890 Institutions (b) $11,600
45.129 Promotion of the Humanities_federal/state Partnership $10,208
98.001 Usaid Foreign Assistance for Programs Overseas $7,915
93.866 Aging Research $7,411
10.525 Farm and Ranch Stress Assistance Network Competitive Grants Program (b) $6,861
11.417 Sea Grant Support $4,513
43.008 Space Grant $3,604
10.515 Renewable Resources Extension Act and National Focus Fund Projects $3,079
84.038 Federal Perkins Loan Program $0