Audit 341679

FY End
2024-06-30
Total Expended
$47.62M
Findings
2
Programs
48
Organization: Morehead State University (KY)
Year: 2024 Accepted: 2025-02-07

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
522399 2024-001 - Yes N
1098841 2024-001 - Yes N

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $17.20M Yes 0
84.063 Federal Pell Grant Program $13.57M Yes 0
93.493 Congressional Directives $2.97M Yes 0
84.425 Education Stabilization Fund $2.02M - 0
84.027 Special Education Grants to States $824,474 - 0
84.346 Mattingly-Cdp Rehab 22/24 $766,294 Yes 0
84.044 Trio Talent Search $571,137 Yes 0
84.066 Trio Educational Opportunity Centers $565,472 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $537,476 Yes 0
84.042 Trio Student Support Services $401,423 Yes 0
84.047 Trio Upward Bound $278,167 Yes 0
84.033 Federal Work-Study Program $238,837 Yes 0
47.076 Stem Education (formerly Education and Human Resources) $170,627 - 0
94.002 Americorps Seniors Retired and Senior Volunteer Program (rsvp) 94.002 $160,661 - 0
94.027 Shon-Used-Kde-Needs 23/24 $150,115 - 0
93.859 Biomedical Research and Research Training $109,177 - 0
47.050 Geosciences $91,385 - 0
47.083 Integrative Activities $65,045 - 0
94.006 Americorps State and National 94.006 $58,023 - 0
84.334 Gaining Early Awareness and Readiness for Undergraduate Programs $57,399 - 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $56,067 Yes 1
93.696 Certified Community Behavioral Health Clinic Expansion Grants $54,196 - 0
11.550 Public Telecommunications Facilities Planning and Construction $52,651 - 0
93.389 Inbre-Kbrin Hare-Lead 22/23 $51,749 - 0
84.116 Fund for the Improvement of Postsecondary Education $39,615 - 0
43.001 Science $37,863 - 0
93.788 Opioid Str $35,693 - 0
93.958 Block Grants for Community Mental Health Services $33,183 - 0
92.021 Sexton-Cncs-Vgf-Engageky 24 $28,246 - 0
23.035 Shannon-Hhs-Voala-Willow 23/24 $27,714 - 0
93.778 Medical Assistance Program $26,215 - 0
10.001 Agricultural Research Basic and Applied Research $25,738 - 0
84.325 Special Education - Personnel Development to Improve Services and Results for Children with Disabilities $24,641 - 0
16.585 Treatment Court Discretionary Grant Program $24,143 - 0
10.558 Child and Adult Care Food Program $13,339 - 0
23.002 Appalachian Area Development $11,902 - 0
59.037 Small Business Development Centers $9,862 - 0
93.297 Teenage Pregnancy Prevention Program $9,619 - 0
10.170 Specialty Crop Block Grant Program - Farm Bill $8,027 - 0
16.812 Second Chance Act Reentry Initiative $7,997 - 0
23.011 Appalachian Research, Technical Assistance, and Demonstration Projects $7,786 - 0
43.008 Office of Stem Engagement (ostem) $7,386 - 0
93.658 Foster Care Title IV-E $6,759 - 0
93.243 Substance Abuse and Mental Health Services Projects of Regional and National Significance $3,587 - 0
93.048 Special Programs for the Aging, Title Iv, and Title Ii, Discretionary Projects $3,376 - 0
93.389 Inbre-Kbrin Hare-Lead 24/25 $233 - 0
84.002 Adult Education - Basic Grants to States $28 - 0
17.259 Wioa Youth Activities $7 - 0

Contacts

Name Title Type
MRGUP99ZAZ59 Kelli Owen Auditee
6067832700 Lance Mann Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Predetermined fixed facilities and administrative costs rates have been approved as follows: Period Covered From 7/1/2023 to 6/30/2027 Based on Financial Information for fiscal year 2023 Predetermined rate – on campus 42% Predetermined rate – off campus 15% These rates are applied to modified total direct costs (as defined by the agreement) for on-campus programs. The University does not utilize the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the University under programs of the federal government for the year ended June 30, 2024. The information in this Schedule is presented in accordance with requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the University, it is not intended to and does not present the net position, changes in net position, or cash flows for the University.
Title: Federal Student Loan Programs Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Predetermined fixed facilities and administrative costs rates have been approved as follows: Period Covered From 7/1/2023 to 6/30/2027 Based on Financial Information for fiscal year 2023 Predetermined rate – on campus 42% Predetermined rate – off campus 15% These rates are applied to modified total direct costs (as defined by the agreement) for on-campus programs. The University does not utilize the 10% de minimis indirect cost rate. Federal student loans issued by the Federal Direct Loan Program during the year ended June 30, 2024 are summarized as follows: Federal Direct Loan Program: Federal Unsubsidized Loans $ 10,680,585 Federal Subsidized Loans $ 5,195,796 Federal Plus Loans $ 1,327,692 As of June 30, 2024, the University had loans outstanding, in the amount of $414,790 with an allowance for doubtful accounts of $27,154 under the Federal Perkins Loan Program.

Finding Details

U.S Department of Education: TEACH Grant, Assistance Listing 84.379 Criteria: The University must comply with 36 CFR Section 686.31(e). Condition: We tested one TEACH Grant recipient for eligibility and noted that for the Fall 2023 semester, the student was not notified of their right to cancel their TEACH Grant, or the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. Cause: The University did not have a procedure in place to properly notify students or parents of their right to cancel their TEACH Grant or procedures and time by which the student or parent must notify the institution that he or she wishes to cancel their TEACH Grant or TEACH Grant disbursement. Effect: The provisions of 36 CFR Section 686.31(e) were not followed and thus the student was not notified of their right to cancel their TEACH Grant, or the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University update their notification to students or parents to include wording about the right to cancel their TEACH Grant and the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. View of responsible officials and planned corrective actions: We agree with this finding and recommendation. A procedure to fully comply with 36 CFR Section 686.31(e) was implemented on January 30, 2024. Notifications were updated to include language about the right to cancel TEACH Grants and the procedures and time by which the student must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. See corrective action plan.
U.S Department of Education: TEACH Grant, Assistance Listing 84.379 Criteria: The University must comply with 36 CFR Section 686.31(e). Condition: We tested one TEACH Grant recipient for eligibility and noted that for the Fall 2023 semester, the student was not notified of their right to cancel their TEACH Grant, or the procedure and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. Cause: The University did not have a procedure in place to properly notify students or parents of their right to cancel their TEACH Grant or procedures and time by which the student or parent must notify the institution that he or she wishes to cancel their TEACH Grant or TEACH Grant disbursement. Effect: The provisions of 36 CFR Section 686.31(e) were not followed and thus the student was not notified of their right to cancel their TEACH Grant, or the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University update their notification to students or parents to include wording about the right to cancel their TEACH Grant and the procedures and time by which the student or parent must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. View of responsible officials and planned corrective actions: We agree with this finding and recommendation. A procedure to fully comply with 36 CFR Section 686.31(e) was implemented on January 30, 2024. Notifications were updated to include language about the right to cancel TEACH Grants and the procedures and time by which the student must notify the institution that he or she wishes to cancel the TEACH Grant or TEACH Grant disbursement. See corrective action plan.