Finding Text
Federal Agency: U.S. Department of Education
Federal Program Title: Student Financial Aid Cluster
Assistance Listing Number: Various
Award Period: July 1, 2022 to June 30, 2023
Type of Finding:
• Significant Deficiency in Internal Control Over Compliance
• Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.25(e) states that an institution must notify the Department of Education by way of the ECAR within 10 days of a changes in third party servicers.
Condition: During our testing, two companies used for Perkins loan collections should have been added as a third party servicer.
Questioned costs: None
Context: During our testing, we noted the College uses two different companies for Perkins loan collections. The third party servicer page was not update to properly reflect the College’s third-party servicers.
Cause: The ECAR was not updated when the College signed a contract with the loan collection agencies.
Effect: The College is not in compliance with Department of Education requirements that states the ECAR must have accurately reported information.
Repeat finding: Yes
Recommendation: We recommend the College review its reporting procedures surrounding updating the ECAR to ensure reporting is accurate and completed.
Views of responsible officials: There is no disagreement with the audit finding.