Finding Text
Student Financial Assistance Cluster
Federal Perkins Loan Program, Assistance Listing Number 84.038
U.S. Department of Education
Program Year 2022-2023
Criteria: 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, for open loans at year end May 31, 2023, 13 of 40 selections did not have records of the related master promissory note (MPN) and related documents. A sample of 40 were selected for testing from a population of 372. For loans retired or assigned within the previous three years, 2 of 29 selections did not have records of the related MPN and related documents. A sample of 29 were selected for testing from a population of 189. Our sample selections were not, and were not intended to be, statistically valid.
Effect: The College does not have documentation of MPNs and related documents for the errors identified.
Cause: The College’s processes did not ensure MPNs and related documents were properly retained.
Identification as a Repeat Finding, if Applicable: 2022-002
Recommendation: The College should revisit the record retention for student related files.
Views of Responsible Officials and Planned Corrective Actions: Administration concurs with the finding. As of November 30, 2023, the Administration has reviewed documentation for the remaining 220 active loans with balances greater than $0.00. It was determined the College has MPNs for 182 or 82.73% of the outstanding loans. Of the remaining 38 loans, 30 loans contain student-initiated activity that substantiates the debt. 8 Loans, or 3.6%, did not have a record of a MPN or alternative documentation.