Corrective Action Plans

Finding 571355 (2023-005)

Significant Deficiency 2023

OR

Eligibility Special Tests & Provisions Significant Deficiency

Finding No. 2023-005 CDBG Entitlement Grants Cluster Federal Assistance Listing Number #14.218 Uniform Guidance Compliance Requirement Code: N- Special Tests and Provisions Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Clark Count...

Finding No. 2023-005 CDBG Entitlement Grants Cluster Federal Assistance Listing Number #14.218 Uniform Guidance Compliance Requirement Code: N- Special Tests and Provisions Criteria Tenant lease files are required to be maintained and tenant eligibility determined in accordance with the Clark County Community Services CDBG Procedures Manual and grant documents. Condition In connection with our lease file review we noted two instances of seven tenants tested where management was unable to locate tenant files. Cause Management’s policies with respect to eligibility and the maintenance of tenant lease files in accordance with Compliance in Clark County Community Services CDBG Procedures Manual and grant documents were not consistently followed. Effect or Potential Effect This could result in units being rented to ineligible tenants. Questioned Costs: N/A. Context In connection with the procedures applied to our CDBG units testing, two of the seven tenants tested did have lease files available. Repeat Finding: No Recommendation Management should establish procedures and monitor compliance with those procedures to ensure that correct income verification procedures are performed timely, tenant eligibility is correctly determined and that tenant lease files are properly maintained in accordance with the requirements of Clark County Community Services CDBG Procedures Manual and grant documents. Views of Responsible Officials The Compliance Specialist discovered missing files at a property while pulling files for the audit. The Compliance team worked to contact residents and rebuild the files with the missing documents. Compliance management investigated and determined the cause of the missing documents was due to a prior site manager not scanning and filing the appropriate documents, along with high staff turnover during this time. The Compliance team is finalizing a new procedure, in addition to the existing, to audit Yardi Voyager for uploaded completed files after move-in and recertification: the goal of this is to catch missing files and documents timely and hold site teams accountable for following the required procedures.

View Audit 362297

Finding 571351 (2023-001)

Significant Deficiency 2023

Reach Community Development, Inc.

OR

Special Tests & Provisions HUD Housing Programs Significant Deficiency

Finding No. 2023-001 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Uniform Guidance Compliance Requirement Code: N-Special Tests and Provisions Criteria During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized...

Finding No. 2023-001 HUD HOME Investment Partnerships Program Federal Assistance Listing Number #14.239 Uniform Guidance Compliance Requirement Code: N-Special Tests and Provisions Criteria During the period of affordability (i.e., the period for which the nonfederal entity must maintain subsidized housing) for HOME assisted rental housing, the participating jurisdiction must perform on-site inspections to determine compliance with property standards and verify the information submitted by the owners no less than (a) every three years for projects containing one to four units, (b) every two years for projects containing five to 25 units, and (c) every year for projects containing 26 or more units. The participating jurisdiction must perform on-site inspections of rental housing occupied by tenants receiving HOME/HOME-ARP-assisted tenant- based rental assistance to determine compliance with housing quality standards (24 CFR sections 92.209(i), 92.251(f), and 92.504(d)). Condition The owner did not ensure passing HQS inspections were performed during 2023. Cause Management did not have in place proper procedures and controls to ensure that HQS inspections were performed during the year ended December 31, 2023. Effect or Potential Effect Housing units may be out of compliance with HUD Quality Standards. Questioned Costs: Not applicable. Context In connection with the procedures applied to tenant file testing there were 8 instances of the 8 files tested where the passing HQS inspections were not performed during the year ended December 31, 2023. Repeat Finding: Yes - Finding 2022-001 Recommendation Management should resume making sure all units meet the HUD Housing Quality Standards and ensure that the responses to any findings are cleared timely. Views of Responsible Officials REACH did return to doing HQS Inspections in 2023. With staffing shortages, it is possible that not every unit was inspected in 2023. REACH continued to reestablish our annual unit inspection process post COVID in 2024. For the finding related to Addy St. This property is managed by a 3rd party management company, REACH’s Asset Management team will work with the management company to ensure all inspections are happening.

View Audit 362297

Finding 571227 (2023-002)

Material Weakness 2023

Pennsylvania Mountains Care Network

PA

Allowable Costs / Cost Principles Reporting Matching / Level of Effort / Earmarking § 200.303

Management agrees with the finding and has updated its internal lost revenue calculation, with cumulative amounts through Period 6 reporting. While management did attempt to update its lost revenue amounts with filing of its Period 4 reports, additional data entry errors were made. Four out of the s...

Management agrees with the finding and has updated its internal lost revenue calculation, with cumulative amounts through Period 6 reporting. While management did attempt to update its lost revenue amounts with filing of its Period 4 reports, additional data entry errors were made. Four out of the six entities that need to report on PRF funding have no further reporting periods; therefore, the Organization has no ability to make further corrections. As such, the internal records maintained by the Organization must serve as teh final reporting of the PRF funding.

View Audit 362109

Finding 571195 (2023-106)

Significant Deficiency 2023

Pancare of Florida, INC

FL

Subrecipient Monitoring HUD Housing Programs Significant Deficiency § 200.303

Condition: The Organization could not provide one salary authorization from for sample selection of 40 employees. Corrective Action Planned: The Organization has implemented a process to ensure that all salary authorizations are properly obtained and stored. When there is any change in an employee...

Condition: The Organization could not provide one salary authorization from for sample selection of 40 employees. Corrective Action Planned: The Organization has implemented a process to ensure that all salary authorizations are properly obtained and stored. When there is any change in an employee's status or salary, an Employee Status Form is completed and signed by the employee, their supervisor, and Human Resources, and when required by the COO and CEO. Additionally, the salary authorization form is added to a secure shared file drive. The shared file drive includes a section where all salary changes are listed. Both HR and Finance initial off to confirm that each salary change is supported by the proper documentation during the payroll review process. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

View Audit 362092

Finding 571194 (2023-105)

Material Weakness 2023

Pancare of Florida, INC

FL

Subrecipient Monitoring HUD Housing Programs Material Weakness § 200.303

Condition: No documentation of employee time approval by supervisors could be provided. The payroll clerk processes the payroll and finance director approves through the releasing of the payroll. However, there is no formal documentation of the overall review of the payroll process and the supervi...

Condition: No documentation of employee time approval by supervisors could be provided. The payroll clerk processes the payroll and finance director approves through the releasing of the payroll. However, there is no formal documentation of the overall review of the payroll process and the supervisors' approval to time recorded by employees. Corrective Action Planned: The Organization has implemented a new payroll process using the ADP system. Employees are now required to approve their own time within the ADP portal, and this approval is documented. Following this, supervisors review and approve their employee's time, which is also documented in the portal. Human Resources then prepares the payroll, reviewing all entries and initialing a shared file of payroll items and providing backup for changes. Once HR confirms accuracy, they notify Finance. Finance then reviews the payroll, with the Finance Manager providing the final approval within ADP once all items are confirmed. The entire process is fully documented, with approvals recorded within the ADP by employees and supervisors and the shared file drive where HR and Finance intimal off on the reviewed payroll times, ensuring a traceable record of the entire payroll approval process. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

View Audit 362092

Finding 571193 (2023-104)

Significant Deficiency 2023

Pancare of Florida, INC

FL

Internal Control / Segregation of Duties Subrecipient Monitoring HUD Housing Programs § 200.303

Condition: The Organization did not maintain property documentation to support the review of the report prior to submission to the grantor, other than the review done by the preparer. Corrective Action Planned: The Organization has hire a new Chief Financial Officer as well as additional supporting ...

Condition: The Organization did not maintain property documentation to support the review of the report prior to submission to the grantor, other than the review done by the preparer. Corrective Action Planned: The Organization has hire a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal controls and facilitate segregation of duties and best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review as also implemented in 2025. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

View Audit 362092

Finding 571192 (2023-102)

Significant Deficiency 2023

Pancare of Florida, INC

FL

Subrecipient Monitoring Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking § 200.303 § 200.328

Condition: The Organization did not maintain proper documentation in support of reporting requirements. Corrective Action Planned: The Organization has hire a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in ...

Condition: The Organization did not maintain proper documentation in support of reporting requirements. Corrective Action Planned: The Organization has hire a new Chief Financial Officer as well as additional supporting staff within the finance department. The accounting staff was restructured in November 2024 with the addition of a Finance Manager and Senior Accountant to strengthen internal control and facilitate segregation of duties best practices for day-to-day activities. In addition to review of month-end journal entries, reporting requirements with additional review was also implemented in 2025. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

View Audit 362092

Finding 571191 (2023-101)

Material Weakness 2023

Pancare of Florida, INC

FL

Special Tests & Provisions Subrecipient Monitoring HUD Housing Programs § 200.303

Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization also lacks a clear review process related to the sliding fee scale to identify errors quickly to allow for corrections to be made in a timely manner....

Condition: The Organization lacks consistently applied processes and procedures related to the application of the sliding fee scale. The Organization also lacks a clear review process related to the sliding fee scale to identify errors quickly to allow for corrections to be made in a timely manner. Corrective Action Planned: The Organization has hired a new Chief Financial Officer as well as additional supporting staff within the finance department. The Billing and Collections Policy was updated to waive co-pays for students in the School-Based Program. The Billing Department is in the process of auditing and implementing quarterly feedback & training sessions for the Operations Department for training and compliance for the Sliding Fee Discount Program. This process was implemented in 2025. Person Responsible for Corrective Action: Joe Derry, Chief Financial Officer. Anticipated Completion Date: Implemented.

View Audit 362092

Finding 570896 (2023-001)

Material Weakness 2023

Local Redevelopment Authority of the Lands and Facilities of Naval Station Roosevelt Roads

PR

Procurement, Suspension & Debarment Reporting Matching / Level of Effort / Earmarking § 200.512

2023-001 Late Single Audit Submissions Category: Material weakness in Internal Control and Material Noncompliance Condition: The Authority has not timely submitted the Single Audit Reporting Packages for the years ended June 30, 2022, and 2023. Management’s Response: Starting in FY 2024-2025, the Fi...

2023-001 Late Single Audit Submissions Category: Material weakness in Internal Control and Material Noncompliance Condition: The Authority has not timely submitted the Single Audit Reporting Packages for the years ended June 30, 2022, and 2023. Management’s Response: Starting in FY 2024-2025, the Finance Department will maintain detailed records of all payments made, deposits received, and the reimbursement and transfer processes. This approach ensures that all reports are completed in a timely manner. To strengthen internal control over accounts, disbursements, and fund entries, the LRA’s Finance Department will hire additional personnel. These new team members are responsible for updating and managing accounting records. Together, they have established a strict timeline for completing important tasks to ensure a clear and concise flow of funds. The workloads will be divided among the team, with specific responsibilities assigned for Accounts Receivable, Accounts Payable, Bank Reconciliation, and Bookkeeping. Some responsibilities are interlinked, allowing team members to support one another in the event of absence or the need for assistance and providing documents to the external audits for the Single Audits. Person in charge: Juan C. Rodriguez Rivera Accounting Official 787-705-7188 Juan.rodriguez@lra.pr.gov Implementation Date: FY 2024-2025

View Audit 361832

Finding 570705 (2023-004)

Material Weakness 2023

Oakland County, Michigan

MI

Material Weakness Reporting Matching / Level of Effort / Earmarking § 200.303

Finding Number: 2023-004 Condition: The County did not have controls in place during the year under audit to ensure that the required certified payrolls were received by contractors and subcontractors. Planned Corrective Action: Develop a process with Neighborhood Housing and Development Department ...

Finding Number: 2023-004 Condition: The County did not have controls in place during the year under audit to ensure that the required certified payrolls were received by contractors and subcontractors. Planned Corrective Action: Develop a process with Neighborhood Housing and Development Department ensuring all appropriate documentation has been reviewed and received. Contact person responsible for corrective action: Khadija Walker-Fobbs Anticipated Completion Date: 07/15/2024

View Audit 361714

Finding 570688 (2023-006)

Material Weakness 2023

Redi Corporation and Affiliates

CO

HUD Housing Programs Procurement, Suspension & Debarment Subrecipient Monitoring

Statement of Condition #2023-006 The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result, management was required to provi...

Statement of Condition #2023-006 The Corporation's accounting books and records as submitted for audit included certain accounts which were not presented in accordance with accounting standards generally accepted in the United States of America ("GAAP"). As a result, management was required to provide audit adjustments to present the March 31, 2023 financial statements in accordance with GAAP. Recommendation: The Agent should maintain a comprehensive set of accounting books and records in accordance with GAAP. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure that the Agent will maintain a comprehensive set of accounting books and records in accordance with GAAP.

View Audit 361711

Finding 570669 (2023-003)

Significant Deficiency 2023

Benton County, Missouri

MO

Subrecipient Monitoring Reporting Cash Management

16.575 - U.S. Department of Justice - Crime Victim Assistance Grant. This grant provides the salary and expenses for the Prosecuting Attorney's Victim Advocate. The County Clerk utilized the year-end expenses for the Victim Advocate grant effort which included salary, office expenses, mileage and tr...

16.575 - U.S. Department of Justice - Crime Victim Assistance Grant. This grant provides the salary and expenses for the Prosecuting Attorney's Victim Advocate. The County Clerk utilized the year-end expenses for the Victim Advocate grant effort which included salary, office expenses, mileage and training expenses. Our records show that a grant reimbursement of $34,583 was received for 2023. In the future, the County Clerk will ensure the total grant reimbursement amounts are utilized. 16.738 - U.S. Department of Justice - Edward Byrne Memorial Justice Assistance Grant. Our research revealed that this grant was received by our Sheriff's Office. However, the grant application and approval was not provided to the County Clerk's office. Therefore, she was unable to reflect this grant in the budget document. We have asked the Sheriff's Office to send us their grant applications so we are able to set-up a tracking system in the future. 20.205 - U.S. Department of Transportation - Highway Planning and Construction. These funds are pass-through grants from the federal government to the Missouri Department of Transportation to fund bridge replacement projects under the BRO Program. The financial audit for the fiscal year ended December 31, 2022, (finding 2022-003) cited Benton County for improperly accounting for these SEFA grants. The original SEFA amount in 2022 was $428,993 and was corrected to show $343,194. The difference was the 20% local match for these grants. The 2023 audit indicates that the County should report 100% of the grant, not just the 80% that will represent the federal/state funds. The County utilized the guidance from the 2022 to report for the 2023 projects, however, this was incorrect due the source of the funds used for matching. Benton County will ensure that 100% of the federal grants will be reflected in the financial documents moving forward for projects that are funded with soft match credit from the Missouri Department of Transportation.

View Audit 361684

Finding 570432 (2023-008)

Material Weakness 2023

College of Micronesia - Fsm

FM

Student Financial Aid Subrecipient Monitoring Reporting

Finding No.: 2023-008 Recommendation The College acknowledges the finding and is committed to addressing the gaps identified in enrollment reporting to the National Student Loan Data System (NSLDS). We recognize that accurate and timely reporting at both the Campus Level and Program Level is critica...

Finding No.: 2023-008 Recommendation The College acknowledges the finding and is committed to addressing the gaps identified in enrollment reporting to the National Student Loan Data System (NSLDS). We recognize that accurate and timely reporting at both the Campus Level and Program Level is critical to maintaining compliance with U.S. Department of Education Title IV requirements and ensuring that students’ federal financial aid records are correctly reflected. Response 1. The College will retain the FAO as the lead unit responsible for NSLDS enrollment reporting, in alignment with Title IV compliance functions. However, the College will strengthen interdepartmental collaboration by establishing a formal partnership with the Registrar’s Office, which maintains the official record of enrollment data. 2. A shared workflow and communication protocol between the FAO and Registrar’s Office will be developed to ensure timely, accurate updates of both campus-level and program-level data. The Registrar’s Office will be responsible for updating student enrollment data, which serves as the source data for NSLDS reporting. The FAO will extract and upload these reports via the Enrollment Reporting Roster (ERR) on the NSLDS Professional Access portal. 3. The College will implement internal controls to track and verify changes in student enrollment status, program information, and key data elements. These controls will include but by no means limited to: a. A monthly reconciliation process between SIS data and NSLDS records. b. Use of exception reports to flag and resolve inconsistencies or delays. c. Documentation of all update logs for audit purposes. Periodic reviews will be conducted at least once per term to assess the accuracy and completeness of enrollment reporting. Any discrepancies will be promptly addressed and procedures updated as necessary to prevent recurrence. Relevant staff in both the FAO and Registrar’s Office will receive regular training on NSLDS reporting requirements, including proper use of record types (Campus vs. Program Level), enrollment status codes, and certification timelines. Training will emphasize the implications of noncompliance and best practices for accurate reporting. Training logs will be maintained by both the FAO and Registrar’s Office to support accountability and audit-readiness. Contact: VPEMSS Completion Date: September 30, 2025

View Audit 361393

Finding 570384 (2023-031)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Reporting Significant Deficiency § 200.512

Single Audit Report Submission Federal Agency: Various Federal Program Name: Research and Development Cluster, Education Stabilization Fund, Supplemental Nutritional Assistance Program (SNAP), Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Stu...

Single Audit Report Submission Federal Agency: Various Federal Program Name: Research and Development Cluster, Education Stabilization Fund, Supplemental Nutritional Assistance Program (SNAP), Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program, Federal Perkins Loan Program Assistance Listing Number: Various Recommendation: We recommend the University implement and maintain an effective system of internal controls over timely submission of the single audit reporting package. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As a result of staffing turnover in the Finance area, the University engaged consulting support to assist in readying for financial statementpreparation and the audit of fiscal years ending 6.30.23 and 6.30.24, with oversight from the University management. The University will develop a fiscal year‐end close process that includes submission of the single audit report. Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks, Controller Planned completion date for corrective action plan: December 31, 2025

View Audit 361386

Finding 570233 (2023-024)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Student Financial Aid Significant Deficiency

240 Day Escheatment Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommend...

240 Day Escheatment Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend the University review its policies and procedures related to outstanding student refund checks to ensure they are being returned to the Department of Education after 240 days. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Management of the areas involved in the escheatment process will develop a business procedure addressing this finding. A regular process will be implemented to ensure the University complies with requirements. The process will be integrated with our month‐end close process to ensure that it occurs in a timely manner. Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks, Controller, Varah Barnett, Director of Financial Aid, Danyel Tolbert, Bursar Planned completion date for corrective action plan: December 31, 2025

View Audit 361386 Questioned Costs: $1

Finding 570228 (2023-023)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Fiscal Operations Report and Application to Participate (FISAP) Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program; Federal Perkins Loan P...

Fiscal Operations Report and Application to Participate (FISAP) Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program; Federal Perkins Loan Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033; 84.038 Recommendation: We recommend management maintain and safeguard all necessary data and documentation to support the FISAP. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: As of March 2024, the Office of Financial Aid has been completely restructured and has new financial aid administrators. The Office of Financial Aid now performs a manual check to ensure FISAP information is in Banner. This entails maintaining worksheets within COD updated. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: July 1, 2024

View Audit 361386

Finding 570227 (2023-022)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Federal Perkins Loan Program Reconciliation Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures around Perkins Loan Program funds and implementing reconciliations and rev...

Federal Perkins Loan Program Reconciliation Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures around Perkins Loan Program funds and implementing reconciliations and review to the third‐party servicer reports. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university is in the process of implementing policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert ‐Bursar Planned completion date for corrective action plan: June 30, 2025

View Audit 361386

Finding 570226 (2023-021)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Internal Control / Segregation of Duties Matching / Level of Effort / Earmarking

Federal Perkins Loan Program Third‐Party Servicer Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures and requirements regarding Perkins third party service providers and...

Federal Perkins Loan Program Third‐Party Servicer Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend reviewing procedures and requirements regarding Perkins third party service providers and ensure compliance with regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The university is in the process of implementing policies and procedures regarding reconciliations for Perkins loan services managed by a 3rd party supplier. Name(s) of the contact person(s) responsible for corrective action: Danyel Tolbert ‐Bursar Planned completion date for corrective action plan: June 30,2025

View Audit 361386

Finding 570225 (2023-020)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Direct Loan Reconciliation Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loan Assistance Listing Number: 84.268 Recommendation: We recommend management maintain proper recordkeeping and retention of documentation and review of such documentation. Explan...

Direct Loan Reconciliation Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loan Assistance Listing Number: 84.268 Recommendation: We recommend management maintain proper recordkeeping and retention of documentation and review of such documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has implemented new procedures surrounding reconciliations of direct loans. The Director of Financial Aid meets monthly with Finance to review reconciliations from Banner and Common Origination Disbursement (COD), which also houses historical data. In addition, the Office of Financial Aid maintains a share drive with all reconciliations. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: July 1, 2024

View Audit 361386

Finding 570224 (2023-019)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Federal Perkins Loan Program Record Retention Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend that the University keep MPNs for loans for the three‐year retention period. Explanation of ...

Federal Perkins Loan Program Record Retention Federal Agency: U.S. Department of Education Federal Program Name: Federal Perkins Loan Program Assistance Listing Number: 84.038 Recommendation: We recommend that the University keep MPNs for loans for the three‐year retention period. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has implemented procedures to ensure that all requirements for loan borrowers are completed. One of these additional internal controls, is that the loan will not disburse unless MPN information is loaded into Banner. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: July 1, 2024

View Audit 361386

Finding 570222 (2023-018)

Material Weakness 2023

Kentucky State University

KY

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Enrollment Reporting to the National Student Loan Database System (NSLDS) Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loan Assistance Listing Number: 84.063; 84.268 Recommendation: We recommend the University evaluate its pr...

Enrollment Reporting to the National Student Loan Database System (NSLDS) Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program; Federal Direct Student Loan Assistance Listing Number: 84.063; 84.268 Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by the third‐party servicer. Additionally, we recommend the University review its policies and procedures on reporting enrollment information to the NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has implemented additional procedures surrounding NSLDS ensuring the information uploaded is timely and accurate. Enrollment is now reported by the Registrar's office to NSLDS and a quality control check is performed by reconciling a Banner system report to the NSLDS input report. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: June 1, 2025

View Audit 361386

Finding 570218 (2023-017)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Cash Management Significant Deficiency

Cash Management Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommendation...

Cash Management Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend management maintain proper recordkeeping and follow policies and procedures that are in effect at the University. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has implemented new procedures surrounding reconciling drawdown requests and approvals. The Director of Financial Aid meets monthly with Finance and Grants Accounting to review reconciliations. Finance now submits drawdown requests to the CFO for prior‐approval and keeps them documented. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: July 1, 2024

View Audit 361386

Finding 570214 (2023-016)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Return of Title IV Calculation Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033...

Return of Title IV Calculation Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend management review policies around determining students who withdrew and if a return of Title IV funds calculation is necessary. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The Student Financial Aid Office now works closely with the Registrar to verify R2T4 calculations. In the event a student withdraws and receives award funds, the R2T4 process provided by the Registrar takes place to calculate the refund amount owed by the student. If no payment arrangement is arranged, the student will be sent to Collections. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: April 1, 2025

View Audit 361386

Finding 570213 (2023-015)

Significant Deficiency 2023

Kentucky State University

KY

Student Financial Aid Significant Deficiency Matching / Level of Effort / Earmarking

Exit Counseling Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loan Assistance Listing Number: 84.268 Recommendation: We recommend the University review its policies and procedures around sending exit counseling information to students to ensure students ...

Exit Counseling Federal Agency: U.S. Department of Education Federal Program Name: Federal Direct Student Loan Assistance Listing Number: 84.268 Recommendation: We recommend the University review its policies and procedures around sending exit counseling information to students to ensure students are receiving proper counseling. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University now utilizes Banner System Optimization to develop a message alert within the Student Portal (Wired) when a withdrawal date is entered. This message servers as a reminder for the student to complete exit counseling. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: November 1, 2024

View Audit 361386

Finding 570209 (2023-014)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Student Financial Aid Significant Deficiency

Awarding of Title IV Aid Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Reco...

Awarding of Title IV Aid Federal Agency: U.S. Department of Education Federal Program Name: Federal Supplemental Educational Opportunity Grant Program; Federal Pell Grant Program; Federal Direct Student Loan; Federal Work Study Program Assistance Listing Number: 84.007; 84.063; 84.268; 84.033 Recommendation: We recommend the University implement policies to review all student award packages at the start of the academic year to ensure no over awarding exist. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University now has a procedure in place so that enrollment is frozen one week prior to disbursing aid. This allows the University to perform a quality check on the inputs. Name(s) of the contact person(s) responsible for corrective action: Varah Barnett, Director of Financial Aid Planned completion date for corrective action plan: February 7, 2025

View Audit 361386 Questioned Costs: $1

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