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: 2022-2023
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 5 out of 40 Perkins files tested, the MPN was not retained on file.
Questioned Costs: None.
Context: The MPNs for the five 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, 2022-003
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.