FAC Explorer

Audit 350857

FY End
2024-06-30
Total Expended
$55.11M
Findings
4
Programs
10
Organization: University of Pikeville (KY)
Year: 2024 Accepted: 2025-03-31
Auditor: Dean Dorton Allen Ford PLLC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
542029 2024-001 Significant Deficiency - E
542030 2024-002 Significant Deficiency - L
1118471 2024-001 Significant Deficiency - E
1118472 2024-002 Significant Deficiency - L

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $48.31M Yes 1
84.063 Federal Pell Grant Program $3.70M Yes 1
84.047 Trio Upward Bound $773,373 Yes 0
93.925 Scholarships for Health Professions Students From Disadvantaged Backgrounds $675,000 Yes 0
84.379 Teacher Education Assistance for College and Higher Education Grants (teach Grants) $451,697 Yes 0
84.033 Federal Work-Study Program $375,000 Yes 0
84.042 Trio Student Support Services $308,560 Yes 0
84.425 Education Stabilization Fund $288,400 - 0
93.732 Mental and Behavioral Health Education and Training Grants $142,603 - 0
84.007 Federal Supplemental Educational Opportunity Grants $89,250 Yes 0

Contacts

Name Title Type
DKDHA3G4YCQ6 Brandi Gollihue Auditee
6062185204 Jim Tencza 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: The University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of University of Pikeville, Inc. (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 the requirements of Title 2 U.S. Code of Federal Regulations 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 financial position, changes in net assets, or cash flows of 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: The University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The University is responsible only for the performance of certain administrative duties with respect to the Federal Direct Loan Program and, accordingly, these loans are not included in the financial statements of the University. It is not practical to determine the balance of loans outstanding to students and former students of the University under this program as of June 30, 2024. The current expenditures under the Federal Direct Loan Program of $48,306,179 are included in the accompanying schedule of expenditures of federal awards.
Title: Federal Perkins Loan Liquidation 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: The University has not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance. The Federal Perkins Loan Program is administered directly by the University, and balances and transactions relating to this program are included in the University's financial statements. Loans outstanding at the beginning of the year plus loans made during the year are included in the federal expenditures presented in the Schedule. As of June 30, 2024, the University had no loans outstanding under the Federal Perkins Loan Program, as all loans were liquidated. No new loans were awarded and disbursed for the year ended June 30, 2024. The University provided an original written notice to liquidate the Federal Perkins Loan program to the U.S. Department of Education (the Department) on September 26, 2023. The submission process to the Department was completed on April 24, 2024, which was the date when the last assigned loan file was submitted to the Department. As required, the University notified the auditor of the Perkins Loan Liquidation process and indicated that the University elected to incorporate the Perkins closeout audit within the University's regular annual audit in accordance with the requirements of the Uniform Guidance. The University notified the borrowers and its third party service provider that the University intended to liquidate and assign all outstanding Perkins loan to the Department on October 2, 2023. Upon acceptance of the assigned loans, the Department became the holder of the loans and assumed responsibility for the collection of the balance owed.

Finding Details

Finding 2024-001
Finding 2024-001 Federal Program: U.S. Department of Education Federal Pell Grant Program, Federal Assistance Listing 84.063 Criteria: The University must comply with 34 CFR 690.61(a)(1). Condition: During our testing of 40 students for eligibility, we noted one student who was eligible for a Pell grant, but was not awarded nor disbursed a Pell grant. Upon further analysis, there were four additional students that were eligible for a Pell grant and were not awarded nor disbursed a Pell grant. Cause: The University's Information Technology (IT) system did not properly identify students that were eligible for a Pell grant in order to be able to award and disburse a Pell grant accordingly. Effect: The provisions of 34 CFR 690.61(a)(1) were not followed and thus a total of five students who were eligible were not awarded a Pell grant. Questioned Costs: We identified one student in our eligibility testing that should have been disbursed $7,395 of Pell grants. Upon further analysis, the four additional students identified should have been disbursed a total of $12,752. The total questioned costs were $20,147. Recommendation: We recommend that the University review all undergraduate students to verify students who are eligible for a Pell grant are awarded a Pell grant accordingly. Views of responsible officials and planned corrective actions: For the year ended June 30, 2024, it was found that some students were not awarded eligible Pell grants. After the initial students were discovered, the University reviewed all students that were active for the 2023-2024 award year and reviewed their most current Institutional Student Information Record (ISIR) to determine which students may not have been awarded Pell grants correctly. Affected students were then awarded as needed and funds applied to their account. Going forward, the University will review subsequent student ISIRs and run additional reports to ensure students are awarded the correct amount of Pell grants. This additional review will capture those who would have previously been missed.
Finding 2024-002
Federal Program: U.S. Department of Education Federal Direct Loan Program, Federal Assistance Listing 84.268 Criteria: The University is required to comply with 36 CFR Section 685.309(b). Condition: During our testing of 40 students for eligibility, we noted three students in which the students' status change was not timely reported to the National Student Loan Database System (NSLDS). Cause: The University did not have controls in place to ensure students' classification were being properly reported to the NSLDS in a timely manner. Effect: Student status changes were not reported within the required timeframe under federal regulations. The provisions of 34 CFR Section 685.309(b) were not followed and thus three students were not reported timely and subsequently not placed into loan repayment status in a timely manner. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University implement a control to ensure data is being reviewed for accuracy by the appropriate personnel before roster files are submitted to the NSLDS. In addition, we recommend that the University submit roster files on a regular basis. Views of responsible officials and planned corrective actions: For the year ended June 30, 2024, three students were reported late to NSLDS. Each student, after being identified, were then reported to NSLDS with the correct status and date. The Office of Institutional Research will work with the Registrar’s Office to ensure that students are reported in a timely manner. The Director of Institutional Research has provided the following steps that will be taken when a student is reported as withdrawn: 1. View the student's transcript in Ellucian to see if he/she withdrew or is back-dated as never enrolling. 2. Update Excel file for the term enrollment accordingly. 3. Update National Student Clearinghouse (NSC) file that will be submitted on the next due date. 4. Manually update the student's enrollment in National Student Clearinghouse 5. Manually update the student's enrollment in NSLDS
Finding 2024-001
Finding 2024-001 Federal Program: U.S. Department of Education Federal Pell Grant Program, Federal Assistance Listing 84.063 Criteria: The University must comply with 34 CFR 690.61(a)(1). Condition: During our testing of 40 students for eligibility, we noted one student who was eligible for a Pell grant, but was not awarded nor disbursed a Pell grant. Upon further analysis, there were four additional students that were eligible for a Pell grant and were not awarded nor disbursed a Pell grant. Cause: The University's Information Technology (IT) system did not properly identify students that were eligible for a Pell grant in order to be able to award and disburse a Pell grant accordingly. Effect: The provisions of 34 CFR 690.61(a)(1) were not followed and thus a total of five students who were eligible were not awarded a Pell grant. Questioned Costs: We identified one student in our eligibility testing that should have been disbursed $7,395 of Pell grants. Upon further analysis, the four additional students identified should have been disbursed a total of $12,752. The total questioned costs were $20,147. Recommendation: We recommend that the University review all undergraduate students to verify students who are eligible for a Pell grant are awarded a Pell grant accordingly. Views of responsible officials and planned corrective actions: For the year ended June 30, 2024, it was found that some students were not awarded eligible Pell grants. After the initial students were discovered, the University reviewed all students that were active for the 2023-2024 award year and reviewed their most current Institutional Student Information Record (ISIR) to determine which students may not have been awarded Pell grants correctly. Affected students were then awarded as needed and funds applied to their account. Going forward, the University will review subsequent student ISIRs and run additional reports to ensure students are awarded the correct amount of Pell grants. This additional review will capture those who would have previously been missed.
Finding 2024-002
Federal Program: U.S. Department of Education Federal Direct Loan Program, Federal Assistance Listing 84.268 Criteria: The University is required to comply with 36 CFR Section 685.309(b). Condition: During our testing of 40 students for eligibility, we noted three students in which the students' status change was not timely reported to the National Student Loan Database System (NSLDS). Cause: The University did not have controls in place to ensure students' classification were being properly reported to the NSLDS in a timely manner. Effect: Student status changes were not reported within the required timeframe under federal regulations. The provisions of 34 CFR Section 685.309(b) were not followed and thus three students were not reported timely and subsequently not placed into loan repayment status in a timely manner. Questioned Costs: There were no questioned costs associated with this finding. Recommendation: We recommend that the University implement a control to ensure data is being reviewed for accuracy by the appropriate personnel before roster files are submitted to the NSLDS. In addition, we recommend that the University submit roster files on a regular basis. Views of responsible officials and planned corrective actions: For the year ended June 30, 2024, three students were reported late to NSLDS. Each student, after being identified, were then reported to NSLDS with the correct status and date. The Office of Institutional Research will work with the Registrar’s Office to ensure that students are reported in a timely manner. The Director of Institutional Research has provided the following steps that will be taken when a student is reported as withdrawn: 1. View the student's transcript in Ellucian to see if he/she withdrew or is back-dated as never enrolling. 2. Update Excel file for the term enrollment accordingly. 3. Update National Student Clearinghouse (NSC) file that will be submitted on the next due date. 4. Manually update the student's enrollment in National Student Clearinghouse 5. Manually update the student's enrollment in NSLDS