Finding 946709 (2022-005)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2024-02-23
Audit: 291887
Organization: Birmingham-Southern College (AL)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The College failed to keep required records for some Perkins Loan borrowers.
  • Impacted Requirements: Non-compliance with 34 CFR 674.19(e) on recordkeeping and retention.
  • Recommended Follow-up: Improve policies to ensure all loan records are properly retained as required.

Finding Text

Federal Program Information: Federal Perkins Loan Program (ALN 84.038) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Perkins Loan Recordkeeping and Record Retention: In accordance with 34 CFR 674.19(e), Institutions must retain original or true and exact copies of promissory and master promissory notes (MPN), repayment records, and cancellation and deferment requests for each Perkins loan (including Defense and National Direct Student Loans) made until the loans are satisfied. Condition: The College was unable to provide certain borrowers’ records. Cause: Administrative oversight. Effect: The College is not in compliance with the Perkins Loan recordkeeping and record retention requirements. Questioned Costs: None. Context: For 3 of 40 borrowers tested, the College was unable to provide a copy of the borrower’s original paper promissory note or original paper MPN and repayment schedule. Repeat Finding: This is a repeat of prior year Finding 2021-006. Recommendation: We recommend the College enhance its policies and procedures to ensure that all Perkins Loan records are retained for the prescribed periods. Views of Responsible Officials: The loans have been purchased by Birmingham-Southern College.

Categories

Special Tests & Provisions Procurement, Suspension & Debarment Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 370262 2022-004
    Significant Deficiency Repeat
  • 370263 2022-007
    Significant Deficiency
  • 370264 2022-008
    Significant Deficiency
  • 370265 2022-007
    Significant Deficiency
  • 370266 2022-008
    Significant Deficiency
  • 370267 2022-005
    - Repeat
  • 370268 2022-002
    - Repeat
  • 370269 2022-003
    - Repeat
  • 370270 2022-004
    Significant Deficiency Repeat
  • 370271 2022-007
    Significant Deficiency
  • 370272 2022-008
    Significant Deficiency
  • 370273 2022-002
    - Repeat
  • 370274 2022-003
    - Repeat
  • 370275 2022-004
    Significant Deficiency Repeat
  • 370276 2022-006
    -
  • 370277 2022-007
    Significant Deficiency
  • 370278 2022-008
    Significant Deficiency
  • 370279 2022-009
    Significant Deficiency Repeat
  • 370280 2022-010
    Significant Deficiency
  • 370281 2022-009
    Significant Deficiency Repeat
  • 946704 2022-004
    Significant Deficiency Repeat
  • 946705 2022-007
    Significant Deficiency
  • 946706 2022-008
    Significant Deficiency
  • 946707 2022-007
    Significant Deficiency
  • 946708 2022-008
    Significant Deficiency
  • 946710 2022-002
    - Repeat
  • 946711 2022-003
    - Repeat
  • 946712 2022-004
    Significant Deficiency Repeat
  • 946713 2022-007
    Significant Deficiency
  • 946714 2022-008
    Significant Deficiency
  • 946715 2022-002
    - Repeat
  • 946716 2022-003
    - Repeat
  • 946717 2022-004
    Significant Deficiency Repeat
  • 946718 2022-006
    -
  • 946719 2022-007
    Significant Deficiency
  • 946720 2022-008
    Significant Deficiency
  • 946721 2022-009
    Significant Deficiency Repeat
  • 946722 2022-010
    Significant Deficiency
  • 946723 2022-009
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.14M
84.425 Education Stabilization Fund $1.36M
84.063 Federal Pell Grant Program $1.20M
84.007 Federal Supplemental Educational Opportunity Grants $152,960
84.033 Federal Work-Study Program $122,905
47.074 Biological Sciences $12,850
10.912 Environmental Quality Incentives Program $4,186
84.038 Federal Perkins Loans $0