Finding Text
Federal Program Information:
Federal Perkins Loan program (“Perkins”) (84.038)
Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation):
N. Special Tests and Provisions - A school must ensure that all of its loans are properly accounted for and updated on the National Student Loan Data System (“NSLDS”). It is the school's responsibility to ensure that the required reporting to NSLDS, including Perkins Loan account detail, is completed timely and accurately. The school should request a Perkins Loan Reconciliation Report (REC005) from the NSLDS Professional Access website and reconcile its records against the report to ensure its outstanding portfolio has been accurately reported to NSLDS. The total amount of loans and number of borrowers on NSLDS should reconcile with the school’s records, its third-party servicer records, and what is reported on its Fiscal Operations Report and Application to Participate (“FISAP”).
Condition:
The University was unable to provide a record of the total amount of loans and number of borrowers that reconciled with the amounts reported per the most recent FISAP and the Perkins Intent and Closeout form.
Cause:
Insufficient administrative oversight over the Perkins program liquidation requirements.
Effect or Potential Effect:
The total amount of loans and number of borrowers reported per the most recent FISAP and the Perkins Intent and Closeout form did not reconcile as required.
Questioned Costs:
Below reporting threshold.
Context:
The University was unable to provide records supporting the total amount of loans and number of borrowers that were reported during the closeout process for its Perkins loan program and in the latest reported FISAP.
Identification as a Repeat Finding:
No similar findings noted in the prior year.
Recommendation:
We recommend the University enhance its policies and procedures to ensure that the amount of loans and number of borrowers in the Perkins program are properly reconciled and accurately reported, in accordance with federal regulations.
Views of Responsible Officials:
Due to limitation on the FISAP, once the number of borrowers and loan balances are entered they cannot be changes, as a result there were minor differences, approximately 5 students and less than $10,000, that had been carried forward for several years. The Department of Education program officer, as well as the University’s loan servicer ECSI, have communicated that some of the numbers may differ due to payments or cancellations made after the loans were recorded. The Department of Education has accepted the information as final.
The University has completed the Perkins Loan program liquidation process. The re-assignment of eligible loans to the Department of Education has been completed. Those not eligible for re-assignment have been deemed uncollectible and written-off. Once the University’s audit has been submitted we anticipated receiving the final close out letter from the Department of Education, which will officially close the Perkins Loan program at the University.