Finding 619953 (2022-003)

Significant Deficiency Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-04-23

AI Summary

  • Core Issue: The University failed to keep required Master Promissory Notes (MPNs) for 2 out of 13 Perkins loan files tested.
  • Impacted Requirements: This violates the recordkeeping regulation outlined in 34 CFR 674-19(e), which mandates retention of MPNs for at least three years.
  • Recommended Follow-Up: Implement a procedure to ensure all MPNs are retained as required by federal regulations to avoid future compliance issues.

Finding Text

Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loans Assistance Listing Number: 84.038 Federal Award Identification Number and Year: N/A Pass-Through Agency: N/A Pass-Through Number(s): N/A Award Period: 2021-2022 Type of Finding: Significant Deficiency in Internal Control over Compliance and Other Matters Criteria or Specific Requirement: The Code of Federal Regulations, 34 CFR 674-19(e) states that Institutions must retain original, true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan made. Condition: During our testing, we noted that 2 out of 13 Perkins files tested, the MPN was not retained on file. Questioned Costs: None. Context: The MPNs for the two students were not kept for at least three years as required by the regulation. Cause: The loans were old and as such the records were not able to be found. Effect: The University was not in compliance with the Perkins recordkeeping regulation as it relates to MPNs. Repeat Finding: Yes, 2021-004 Recommendation: We recommend that the University implement a procedure to ensure that all necessary MPNs are retained in accordance with the federal regulation. Views of Responsible Officials: There is no disagreement with the audit finding.

Categories

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 43508 2022-001
    Significant Deficiency Repeat
  • 43509 2022-004
    Significant Deficiency
  • 43510 2022-001
    Significant Deficiency Repeat
  • 43511 2022-003
    Significant Deficiency Repeat
  • 50306 2022-004
    Significant Deficiency
  • 50307 2022-001
    Significant Deficiency Repeat
  • 50308 2022-004
    Significant Deficiency
  • 50309 2022-001
    Significant Deficiency Repeat
  • 50310 2022-004
    Significant Deficiency
  • 50311 2022-001
    Significant Deficiency Repeat
  • 50312 2022-004
    Significant Deficiency
  • 50313 2022-002
    Significant Deficiency Repeat
  • 619950 2022-001
    Significant Deficiency Repeat
  • 619951 2022-004
    Significant Deficiency
  • 619952 2022-001
    Significant Deficiency Repeat
  • 626748 2022-004
    Significant Deficiency
  • 626749 2022-001
    Significant Deficiency Repeat
  • 626750 2022-004
    Significant Deficiency
  • 626751 2022-001
    Significant Deficiency Repeat
  • 626752 2022-004
    Significant Deficiency
  • 626753 2022-001
    Significant Deficiency Repeat
  • 626754 2022-004
    Significant Deficiency
  • 626755 2022-002
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $29.77M
84.038 Federal Perkins Loan Program $1.59M
84.425 Education Stabilization Fund $344,499
84.063 Federal Pell Grant Program $296,469
84.033 Federal Work-Study Program $186,289
84.007 Federal Supplemental Educational Opportunity Grants $24,396