Finding Text
Finding 2023-008 – N. Special Tests and Provisions – Perkins Loan Record Keeping and Record Retention
Information on Federal Program(s) - Federal Perkins Loan Program (ALN 84.038)
Criteria or Specific Requirement - Institutions must retain original or true and exact copies of promissory and master promissory notes, repayment records, and cancellation and deferment requests for each Federal Perkins Loan Program (“Perkins”) loan made.
Condition – For certain Perkins loans, the University could not locate the original promissory notes that contained all the necessary information, including signatures.
Cause - Administrative oversight and insufficient internal controls.
Effect or Potential Effect - The University was not in compliance with the Perkins loan recordkeeping and record retention requirements.
Questioned Costs – None.
Context – For 21 of 40 students tested, the University was unable to provide documentation evidencing proper retention of loan records.
Indication of Repeat Finding - No similar findings noted in the prior year.
Recommendation – We recommend that the University enhance its internal controls over compliance to prevent over Perkins loan recordkeeping and record retention requirements.
Views of Responsible Officials – Wheeling University worked with ECSI regarding Perkins information. With the Perkins program ending, we realized that we needed to move in the direction of closing out Perkins files/information.
The University is currently working with ECSI so that we are able to submit Perkins information/files to the Department of Education. We are gathering information (promissory notes, bankruptcy details, payment information, etc.) to assist ECSI with the process.