2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student's estimated cost of attendance for the period of enrollment less the borrower's expected family contribution and estimated financial assistance for that period (34 CFR 685.203).
Condition: During our testing of thirty-seven student files, we noted three individuals (8%)
received a subsidized loan in excess of need.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $5,002
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid.
Recommendation: We recommend Cottey College reclassify $5,002 from subsidized to
unsubsidized.
2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is
included in the Corrective Action Plan.
2023-004 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.164 (a)(1) states "Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student's ledger account or pays the student or parent directly with
- (i) Funds received form the
Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds;
Condition: Cottey College did not report actual loan disbursement dates to the Common
Origination and Disbursement (COD) system for 5 of the 37 students in the sample (13.5%). We
consider this condition to be a significant deficiency in internal control over compliance relating
to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this
report as prior year finding 2022-003. Statistical sampling was not used in making sample
selections.
Questioned Costs: $16,444
Cause and Effect: Cottey College noted this was an error that occurred but did not occur with the
entire batches.
Recommendation: We recommend Cottey College implement procedures in order to report
accurate disbursements dates for Direct Loans to COD.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-005 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.22 (a)(1) states "When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the
recipient began attendance, the institution must determine the amount of title IV grant or loan
assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section."
34 CFR 668.22 (e)(2) states, "The percentage of title IV grant or loan assistance that has been
earned by the student is - (i) Equal to the percentage of the payment period or period of
enrollment that the student completed (as determined in accordance with paragraph (f) of this
section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of
60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or..."
34 CFR 668.22(j) notes, "(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days
after the date of the institution's determination that the student withdrew as defined in paragraph
(l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b)."
An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student's account for outstanding charges (34 CFR 668.22).
Condition: Cottey College did not timely and accurately complete refund calculations due to
excluding one extra day in error for Thanksgiving break, which caused the total days to be off by
one day. In review of the calculations the number of days in the break was not calculated
correctly, resulting in the incorrect days in 1 out of 4 return of Title IV funds calculations. As a
result of the incorrect number of days, the amounts of Title IV returned was incorrectly
calculated for 1 out of the population of 4 (25%) withdrawal calculations which resulted in only
$32 being under refunded for one student in the sample. We consider this finding to be an
instance of non-compliance in relation to Special Tests and Provisions and is not a repeat
finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $32
Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect
amounts returned by Cottey College.
Recommendation: We recommend Cottey College continually educate themselves on the
requirements for the return of title IV fund and ensure the proper controls are implemented to
timely and accurately return unearned aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-005 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.22 (a)(1) states "When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the
recipient began attendance, the institution must determine the amount of title IV grant or loan
assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section."
34 CFR 668.22 (e)(2) states, "The percentage of title IV grant or loan assistance that has been
earned by the student is - (i) Equal to the percentage of the payment period or period of
enrollment that the student completed (as determined in accordance with paragraph (f) of this
section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of
60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or..."
34 CFR 668.22(j) notes, "(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days
after the date of the institution's determination that the student withdrew as defined in paragraph
(l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b)."
An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student's account for outstanding charges (34 CFR 668.22).
Condition: Cottey College did not timely and accurately complete refund calculations due to
excluding one extra day in error for Thanksgiving break, which caused the total days to be off by
one day. In review of the calculations the number of days in the break was not calculated
correctly, resulting in the incorrect days in 1 out of 4 return of Title IV funds calculations. As a
result of the incorrect number of days, the amounts of Title IV returned was incorrectly
calculated for 1 out of the population of 4 (25%) withdrawal calculations which resulted in only
$32 being under refunded for one student in the sample. We consider this finding to be an
instance of non-compliance in relation to Special Tests and Provisions and is not a repeat
finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $32
Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect
amounts returned by Cottey College.
Recommendation: We recommend Cottey College continually educate themselves on the
requirements for the return of title IV fund and ensure the proper controls are implemented to
timely and accurately return unearned aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-006 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: In the case of an undergraduate student who has successfully completed the first and
second years of a program of study of undergraduate education but has not successfully
completed the remainder of the program, the total amount the student may borrow for any
academic year of study under the Direct Subsidized Loan Program may not exceed the
following: $5,500 for a program of study of at least an academic year in length (34 CFR
685.203).
Condition: During our testing of thirty-seven student files, we noted two individuals (5%) did
not receive the full amount of their Federal Direct Subsidized Loans.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $5,436
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is students received unsubsidized loans prior to
receiving full subsidized loans.
Recommendation: We recommend Cottey College evaluate policies and procedures to ensure
students receive the proper amount of Title IV aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-008 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: A student who has not successfully completed a program of study at the undergraduate
level may not receive Federal Direct Subsidized Loans in excess of $23,000 (34 CFR 682.204).
Condition: During our testing of thirty-seven student files, we noted one individual (2.7%)
received an excess of $1,969 over the maximum undergraduate level of $23,000 in Federal
Direct Subsidized Loans.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $1,969
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is a student received ineligible loan proceeds.
Recommendation: We recommend Cottey College reclassify $1,969 from subsidized to
unsubsidized.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: A student may not receive a Federal Direct Subsidized Loan amount that exceeds the student's estimated cost of attendance for the period of enrollment less the borrower's expected family contribution and estimated financial assistance for that period (34 CFR 685.203).
Condition: During our testing of thirty-seven student files, we noted three individuals (8%)
received a subsidized loan in excess of need.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $5,002
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid.
Recommendation: We recommend Cottey College reclassify $5,002 from subsidized to
unsubsidized.
2023-003 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Views of Responsible Officials: Management agrees with this Single Audit Finding and response is
included in the Corrective Action Plan.
2023-004 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.164 (a)(1) states "Except as provided under paragraph (a)(2) of this section, a disbursement of title IV, HEA program funds occurs on the date that the institution credits the student's ledger account or pays the student or parent directly with
- (i) Funds received form the
Secretary; (ii) Institutional funds received from a lender under title IV, HEA program funds;
Condition: Cottey College did not report actual loan disbursement dates to the Common
Origination and Disbursement (COD) system for 5 of the 37 students in the sample (13.5%). We
consider this condition to be a significant deficiency in internal control over compliance relating
to the Eligibility compliance requirement and is a repeat finding shown in Section IV of this
report as prior year finding 2022-003. Statistical sampling was not used in making sample
selections.
Questioned Costs: $16,444
Cause and Effect: Cottey College noted this was an error that occurred but did not occur with the
entire batches.
Recommendation: We recommend Cottey College implement procedures in order to report
accurate disbursements dates for Direct Loans to COD.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-005 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.22 (a)(1) states "When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the
recipient began attendance, the institution must determine the amount of title IV grant or loan
assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section."
34 CFR 668.22 (e)(2) states, "The percentage of title IV grant or loan assistance that has been
earned by the student is - (i) Equal to the percentage of the payment period or period of
enrollment that the student completed (as determined in accordance with paragraph (f) of this
section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of
60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or..."
34 CFR 668.22(j) notes, "(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days
after the date of the institution's determination that the student withdrew as defined in paragraph
(l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b)."
An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student's account for outstanding charges (34 CFR 668.22).
Condition: Cottey College did not timely and accurately complete refund calculations due to
excluding one extra day in error for Thanksgiving break, which caused the total days to be off by
one day. In review of the calculations the number of days in the break was not calculated
correctly, resulting in the incorrect days in 1 out of 4 return of Title IV funds calculations. As a
result of the incorrect number of days, the amounts of Title IV returned was incorrectly
calculated for 1 out of the population of 4 (25%) withdrawal calculations which resulted in only
$32 being under refunded for one student in the sample. We consider this finding to be an
instance of non-compliance in relation to Special Tests and Provisions and is not a repeat
finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $32
Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect
amounts returned by Cottey College.
Recommendation: We recommend Cottey College continually educate themselves on the
requirements for the return of title IV fund and ensure the proper controls are implemented to
timely and accurately return unearned aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-005 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: 34 CFR 668.22 (a)(1) states "When a recipient of title IV grant or loan assistance withdraws from an institution during a payment period or period of enrollment in which the
recipient began attendance, the institution must determine the amount of title IV grant or loan
assistance that the student earned as of the student's withdrawal date in accordance with paragraph (e) of this section."
34 CFR 668.22 (e)(2) states, "The percentage of title IV grant or loan assistance that has been
earned by the student is - (i) Equal to the percentage of the payment period or period of
enrollment that the student completed (as determined in accordance with paragraph (f) of this
section) as of the student's withdrawal date, if this date occurs on or before - (A) Completion of
60 percent of the payment period or period of enrollment for a program that is measured in credit hours; or..."
34 CFR 668.22(j) notes, "(1) An institution must return the amount of title IV funds for which it is responsible under paragraph (g) of this section as soon as possible but no later than 45 days
after the date of the institution's determination that the student withdrew as defined in paragraph
(l)(3) of this section. The timeframe for returning funds is further described in § 668.173(b)."
An institution must notify the student of a post-withdrawal disbursement of Federal Direct Loans used to credit the student's account for outstanding charges (34 CFR 668.22).
Condition: Cottey College did not timely and accurately complete refund calculations due to
excluding one extra day in error for Thanksgiving break, which caused the total days to be off by
one day. In review of the calculations the number of days in the break was not calculated
correctly, resulting in the incorrect days in 1 out of 4 return of Title IV funds calculations. As a
result of the incorrect number of days, the amounts of Title IV returned was incorrectly
calculated for 1 out of the population of 4 (25%) withdrawal calculations which resulted in only
$32 being under refunded for one student in the sample. We consider this finding to be an
instance of non-compliance in relation to Special Tests and Provisions and is not a repeat
finding. Statistical sampling was not used in making sample selections.
Questioned Costs: $32
Effect: Miscalculation of the days in the Return of Title IV funds calculations results in incorrect
amounts returned by Cottey College.
Recommendation: We recommend Cottey College continually educate themselves on the
requirements for the return of title IV fund and ensure the proper controls are implemented to
timely and accurately return unearned aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-006 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: In the case of an undergraduate student who has successfully completed the first and
second years of a program of study of undergraduate education but has not successfully
completed the remainder of the program, the total amount the student may borrow for any
academic year of study under the Direct Subsidized Loan Program may not exceed the
following: $5,500 for a program of study of at least an academic year in length (34 CFR
685.203).
Condition: During our testing of thirty-seven student files, we noted two individuals (5%) did
not receive the full amount of their Federal Direct Subsidized Loans.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $5,436
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is students received unsubsidized loans prior to
receiving full subsidized loans.
Recommendation: We recommend Cottey College evaluate policies and procedures to ensure
students receive the proper amount of Title IV aid.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-007 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: The Secretary considers excess cash to be any amount of title IV, HEA program funds,
other than Federal Perkins Loan program funds, that an institution does not disburse to students
by the end of the third business day following the date the institution received those funds from
the Secretary or deposited or transferred to its depository account previously disbursed title IV,
HEA program funds, such as those resulting from award adjustments, recoveries, or
cancellations. An institution may maintain for up to seven days an amount of excess cash that
does not exceed one percent of the total amount of funds the institution drew down in the prior
award year. The institution must return immediately to the Secretary any amount of excess cash
over the one-percent tolerance and any amount of excess cash remaining in its account after the
seven-day tolerance period. (34 CFR 668.163, 668.166).
Condition: Throughout the year cash on hand exceeded the immediate disbursement needs for
three working days and the excess cash tolerances were not eliminated within seven working
days. We consider this condition to be a significant deficiency in internal control over
compliance relating to the Cash Management compliance requirement and is not a repeat finding.
Questioned Costs: $25,644.
Effect: As a result, the Institution is retaining federal monies longer than allowed.
Recommendation: We recommend Cottey College implement procedures and cash controls to
avoid having excess cash.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.
2023-008 Student Financial Aid Cluster (a) Federal Supplemental Educational Opportunity
Grant (b) Federal Work Study Grant (c) Federal Pell Grant Program (d) Federal Direct Loan
Program, Assistance Listing No. (a) 84.007 (b) 84.033 (c) 84.063 (d) 84.268 - Year Ended
June 30, 2023
Criteria: A student who has not successfully completed a program of study at the undergraduate
level may not receive Federal Direct Subsidized Loans in excess of $23,000 (34 CFR 682.204).
Condition: During our testing of thirty-seven student files, we noted one individual (2.7%)
received an excess of $1,969 over the maximum undergraduate level of $23,000 in Federal
Direct Subsidized Loans.
We consider this condition to be an instance of non-compliance relating to the Eligibility
compliance requirement. Statistical sampling was not used in making sample selections.
Questioned Costs: $1,969
Cause and Effect: Without proper review of eligibility of financial aid, students may receive an
incorrect amount of Title IV aid. The result is a student received ineligible loan proceeds.
Recommendation: We recommend Cottey College reclassify $1,969 from subsidized to
unsubsidized.
Views of Responsible Officials: Management agrees with this Single Audit Finding and response
is included in the Corrective Action Plan.