Corrective Action Plans

Finding 570789 (2023-003)

Material Weakness 2023

Social & Environmental Entrepreneurs, Inc.

CA

Allowable Costs / Cost Principles Questioned Costs Internal Control / Segregation of Duties § 200.430

Views of responsible officials and planned corrective actions: Management acknowledges the oversight in not utilizing timecards for salaried employees whose compensation is charged to federal contracts. To strengthen internal controls and ensure compliance with applicable federal regulations, manage...

Views of responsible officials and planned corrective actions: Management acknowledges the oversight in not utilizing timecards for salaried employees whose compensation is charged to federal contracts. To strengthen internal controls and ensure compliance with applicable federal regulations, management is committed to implementing corrective measures. As part of this effort, management will update existing policies and procedures, and will identify and provide targeted training for accounting personnel responsible for allocating salary charges to federal contracts.

View Audit 361731 Questioned Costs: $1

Finding 570728 (2023-008)

Material Weakness 2023

Oakland County, Michigan

MI

Questioned Costs Subrecipient Monitoring Cash Management

Finding Number: 2023-008 Condition: The County did not have controls in place to ensure the subrecipient was paid within 30 calendar days after request for reimbursement was received. Planned Corrective Action: Chief Engineer – WRC, Evans Bantios, will review department processes regarding invoice d...

Finding Number: 2023-008 Condition: The County did not have controls in place to ensure the subrecipient was paid within 30 calendar days after request for reimbursement was received. Planned Corrective Action: Chief Engineer – WRC, Evans Bantios, will review department processes regarding invoice due dates and acquire approval documentation from the vendor if a payment is beyond the due date. Contact person responsible for corrective action: Chief Engineer – WRC, Evans Bantios Anticipated Completion Date: 06/30/2025

View Audit 361714

Finding 570727 (2023-007)

Material Weakness 2023

Oakland County, Michigan

MI

Reporting Questioned Costs Material Weakness § 200.502 § 200.508 § 200.510

Finding Number: 2023-007 Condition: Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Planned Corrective Action: Reports in Workday along with new reconciliation workpapers will be utilized to ensure a complete and accurate SEFA in FY2025. ...

Finding Number: 2023-007 Condition: Controls in place were not adequate to ensure the schedule of federal expenditures was complete and accurate. Planned Corrective Action: Reports in Workday along with new reconciliation workpapers will be utilized to ensure a complete and accurate SEFA in FY2025. Contact person responsible for corrective action: Laura Randall Anticipated Completion Date: 06/30/2025

View Audit 361714

Finding 570722 (2023-006)

Material Weakness 2023

Oakland County, Michigan

MI

Subrecipient Monitoring Reporting Questioned Costs

Finding Number 2023-006 Condition: The County did not file the required FFATA reports for CDBG subrecipients timely. Planned Corrective Action: Schedule FFATA reporting within 30 days of Cities, Villages and Township budget acceptance. Contact person responsible for corrective action: Laura Randall ...

Finding Number 2023-006 Condition: The County did not file the required FFATA reports for CDBG subrecipients timely. Planned Corrective Action: Schedule FFATA reporting within 30 days of Cities, Villages and Township budget acceptance. Contact person responsible for corrective action: Laura Randall Anticipated Completion Date: 06/17/2024

View Audit 361714

Finding 570705 (2023-004)

Material Weakness 2023

Oakland County, Michigan

MI

Questioned Costs Material Weakness Reporting § 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 570694 (2023-004)

Material Weakness 2023

Redi Corporation and Affiliates

CO

Questioned Costs Procurement, Suspension & Debarment Subrecipient Monitoring

Statement of Condition #2023-004: During the year ended March 31, 2023, the Partnership made distributions of $40,398 in excess of surplus cash. Recommendation: Management should limit the payment of distributions to surplus cash. Action(s) taken or planned on the finding: Agreed. Management will l...

Statement of Condition #2023-004: During the year ended March 31, 2023, the Partnership made distributions of $40,398 in excess of surplus cash. Recommendation: Management should limit the payment of distributions to surplus cash. Action(s) taken or planned on the finding: Agreed. Management will limit future distributions to surplus cash.

View Audit 361711 Questioned Costs: $1

Finding 570687 (2023-003)

Significant Deficiency 2023

Redi Corporation and Affiliates

CO

Questioned Costs HUD Housing Programs

Statement of Condition #2023-003: For the year ended March 31, 2023, the Corporation paid $28,300 on behalf of a related entity without HUD approval. Recommendation: The related entity should repay $28,300 to the Corporation. The Agent should consider obtaining written approval from HUD prior to mak...

Statement of Condition #2023-003: For the year ended March 31, 2023, the Corporation paid $28,300 on behalf of a related entity without HUD approval. Recommendation: The related entity should repay $28,300 to the Corporation. The Agent should consider obtaining written approval from HUD prior to making any future distributions or payments to related entities. Action(s) Taken or Planned on the Finding: Agreed. The Agent concurs with the finding and agrees with the auditor's recommendation. The related entity will repay $28,300 to the Corporation.

View Audit 361711 Questioned Costs: $1

Finding 570686 (2023-002)

Material Weakness 2023

Redi Corporation and Affiliates

CO

Questioned Costs HUD Housing Programs Special Tests & Provisions

Statement of Condition #2023-002: During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Recommendation: The Agent should transfe...

Statement of Condition #2023-002: During the year ended March 31, 2023, the Corporation did not make the required deposit to the residual receipts account within 90 days after the end of the fiscal year, resulting in the account being underfunded at year end. Recommendation: The Agent should transfer $51,630 from the REDI III operating account to the residual receipts account and $19,654 from the REDI IV operating account to the residual receipts account. The Agent should make all required deposits to the residual receipts account within 90 days after the end of the fiscal year. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation will ensure future deposits to the residual receipts account are made within 90 days after the end of the fiscal year.

View Audit 361711 Questioned Costs: $1

Finding 570685 (2023-001)

Material Weakness 2023

Redi Corporation and Affiliates

CO

HUD Housing Programs Questioned Costs Special Tests & Provisions

Statement of Condition #2023-001: At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to ...

Statement of Condition #2023-001: At March 31, 2023, the Corporation's reserve for replacement accounts were underfunded. Recommendation: The Agent should transfer $10,840 from the respective operating accounts to the reserve for replacements accounts. The Agent should make all required deposits to the reserve for replacements accounts. Action(s) taken or planned on the finding: Agreed. The Agent concurs with the finding and the auditor's recommendation. The Corporation made the $3,490 required transfer for REDI IV and the $7,350 deposit to REDI III.

View Audit 361711 Questioned Costs: $1

Finding 570659 (2023-005)

Material Weakness 2023

Tuerk House, Inc.

MD

Questioned Costs Reporting Internal Control / Segregation of Duties

The Organization acknowledges this repeat finding and is taking action to improve the accuracy and oversight of financial and programmatic reporting for federally funded programs. In response, internal controls have been strengthened to ensure that all expenditure reports and quarterly programmatic ...

The Organization acknowledges this repeat finding and is taking action to improve the accuracy and oversight of financial and programmatic reporting for federally funded programs. In response, internal controls have been strengthened to ensure that all expenditure reports and quarterly programmatic reports are fully supported by underlying documentation from the accounting system and program records. A standardized grant reporting checklist has been developed and is now required to be completed for each submission. This checklist includes steps for reconciling reported expenditures with the general ledger and verifying that all programmatic metrics, such as unduplicated patient counts, are accurate and appropriately sourced. Reports are reviewed and approved by both the management of finance and program departments prior to submission. Quarterly training and periodic reviews have also been instituted for finance and program staff involved in grant reporting to reinforce proper procedures and improve coordination across departments. These corrective actions are intended to ensure accurate, compliant, and timely reporting in alignment with 45 CFR 75.342 and Uniform Guidance requirements. Organization Contact Person Responsible for Corrective Action: Joseph Koehler, Director of Finance Anticipated Completion Date: June 30, 2025

View Audit 361679

Finding 570656 (2023-003)

Material Weakness 2023

Tuerk House, Inc.

MD

Allowable Costs / Cost Principles Questioned Costs Period of Performance § 200.308 § 200.309 § 200.334 § 200.403

The Organization acknowledges this repeat finding and will take steps to address the deficiencies noted. Since the prior year's audit, management will implement updated procedures to strengthen internal controls around documentation of allowable costs charged to federal awards. These measures includ...

The Organization acknowledges this repeat finding and will take steps to address the deficiencies noted. Since the prior year's audit, management will implement updated procedures to strengthen internal controls around documentation of allowable costs charged to federal awards. These measures include the development of a formal time and effort reporting system, which requires all grant-funded employees to submit periodic certifications that reflect actual hours worked and funding source allocation. Supervisors are now required to review and approve these certifications to ensure alignment with actual program activities. Additionally, the Organization will reinforce its invoice documentation and review process. All expenditures charged to the Block Grant and Opioid STR programs must now be supported by detailed invoices and documentation that clearly demonstrate allocability, allowability, and consistency with the approved grant budget and period of performance. These requirements are monitored through monthly reviews by the finance department. The Organization has also adopted a document retention policy aligned with 2 CFR §200.334, and relevant staff have received training on documentation and compliance requirements for federal awards. These corrective actions are being actively monitored by the Director of Finance to ensure full implementation and ongoing compliance. Organization Contact Person Responsible for Corrective Action: Joseph Koehler, Director of Finance Anticipated Completion Date: June 30, 2025

View Audit 361679 Questioned Costs: $1

Finding 570524 (2023-004)

Material Weakness 2023

Codeva, Inc.

VA

Questioned Costs Cash Management Reporting

The Organization has engaged a management consulting firm with expertise in financial accounting and reporting to implement additional review and oversight procedures in its financial policies.

View Audit 361514 Questioned Costs: $1

Finding 570523 (2023-003)

Material Weakness 2023

Codeva, Inc.

VA

Questioned Costs Cash Management

The Organization has engaged a management consulting firm with expertise in financial accounting and reporting to implement additional review and oversight procedures in its financial policies.

View Audit 361514 Questioned Costs: $1

Finding 570522 (2023-002)

Material Weakness 2023

Codeva, Inc.

VA

Questioned Costs Internal Control / Segregation of Duties Material Weakness

The Organization has engaged a management consulting firm with expertise in financial accounting and reporting to implement additional review and oversight procedures in its financial policies.

View Audit 361514 Questioned Costs: $1

Finding 570521 (2023-001)

Material Weakness 2023

Codeva, Inc.

VA

Questioned Costs Internal Control / Segregation of Duties Reporting

The Organization has engaged a management consulting firm with expertise in financial accounting and reporting to implement additional review and oversight procedures in its financial policies.

View Audit 361514 Questioned Costs: $1

Finding 570430 (2023-006)

Material Weakness 2023

College of Micronesia - Fsm

FM

Student Financial Aid Subrecipient Monitoring Questioned Costs

Finding 2023-06 – Special Tests and Provisions: Gramm-Leach-Bliley Act–Student Information Security Recommendation The College should develop and implement a comprehensive GLBA information security program that includes risk assessments, safeguards, and regular testing and monitoring of the effectiv...

Finding 2023-06 – Special Tests and Provisions: Gramm-Leach-Bliley Act–Student Information Security Recommendation The College should develop and implement a comprehensive GLBA information security program that includes risk assessments, safeguards, and regular testing and monitoring of the effectiveness of these safeguards. A qualified individual with the necessary expertise and authority to oversee the GLBA information security program should also be designated. Provide training to relevant staff on GLBA requirements and the importance of information security. Conduct periodic reviews and updates of the information security program to ensure ongoing compliance with GLBA requirements. Response The college acknowledges the finding and will strengthen its student information security by implementing the following: 1) Designate a qualified Information Security Officer from within the IT Division or recruit externally if internal capacity is limited. 2) Develop a GLBA compliance program that includes: • Annual risk assessments • Implementation of administrative, technical, and physical safeguards • Staff training on data privacy • Annual testing of the security protocols Contact: Vice President for Institutional Effectiveness & Quality Assurance (VPIEQA) Completion Date: September 30, 2025

View Audit 361393

Finding 570429 (2023-005)

Significant Deficiency 2023

College of Micronesia - Fsm

FM

Student Financial Aid Questioned Costs Special Tests & Provisions

Finding No.: 2023-005 Recommendation The College should enhance training programs for staff involved in the verification process to ensure they are fully aware of the requirements and procedures. Establish robust internal controls and review mechanisms to ensure that verification worksheets are comp...

Finding No.: 2023-005 Recommendation The College should enhance training programs for staff involved in the verification process to ensure they are fully aware of the requirements and procedures. Establish robust internal controls and review mechanisms to ensure that verification worksheets are completed accurately and consistently with ISIRs. Implement a tracking system to ensure that all required corrections to ISIRs are performed in a timely manner. Response The College acknowledges the audit finding regarding verification errors, including the incorrect application of verification tracking groups, missing documentation, discrepancies between verification worksheets and ISIRs, and failure to make required corrections. In response, the Financial Aid Office (FAO) is committed to strengthening its verification procedures to ensure full compliance with federal regulations and to protect the integrity of Title IV funds. To this end, the College will implement the following corrective actions: 1. Policy and Procedure Enhancement a. The FAO will develop and implement a formal Standard Operating Procedure (SOP) for the verification process, revise and update all existing verification worksheet forms. This SOP will include: • Clear guidelines for identifying and applying the correct verification tracking groups (e.g., V1, V4, V5). • Procedures for resolving discrepancies between verification worksheets and ISIRs prior to award disbursement. • Steps for submitting timely and accurate ISIR corrections, as required. • A documentation checklist to ensure all required verification forms and statements of educational purpose are collected and properly stored. 2. Policy and Procedure Enhancement a. To ensure consistent understanding and application of federal verification rules, FAO staff across all campuses will: • Complete mandatory annual training sessions on verification policies, ISIR review, and regularly read updates on the Federal Student Aid (FSA) Knowledge Center. • Participate in internal refresher workshops focused on hands-on case processing and error prevention. • Complete relevant modules from the Federal Student Aid (FSA) training site, including those on verification tracking groups and identity verification requirements. 3. Verification Quality Control Protocol a. The FAO will implement a structured quality control protocol for verification, including: • A two-person verification review system in which one staff member processes the file and another independently reviews it for accuracy and completeness. • Use of a standardized review checklist to ensure all required documents match the ISIR and that any discrepancies are properly resolved and documented. • A log of all verification actions, including corrections submitted to FAFSA Processing System (FPS) and updates made in the student’s file, to support audit readiness. 4. Oversight and Accountability a. The Director of the Financial Aid Office (FAO) will be responsible for overseeing verification compliance and ensuring corrective actions are implemented effectively. This includes: • Monitoring the accuracy of verification tracking group assignments and documentation across all campuses. • Tracking the completion of required training for all FAO staff. • Conducting quarterly file audits to verify ongoing compliance with federal verification standards. • Reporting findings and corrective actions quarterly to the VPEMSS). Contact: VPEMSS Completion Date - September 30, 2025

View Audit 361393 Questioned Costs: $1

Finding 570428 (2023-004)

Significant Deficiency 2023

College of Micronesia - Fsm

FM

Student Financial Aid Questioned Costs Reporting

Finding No.: 2023-004 Recommendation The College should establish a systematic process for reviewing and updating the origination records prior to submission to COD System. Response The College acknowledges the audit finding regarding the use of outdated cost of attendance (COA) figures and the unif...

Finding No.: 2023-004 Recommendation The College should establish a systematic process for reviewing and updating the origination records prior to submission to COD System. Response The College acknowledges the audit finding regarding the use of outdated cost of attendance (COA) figures and the uniform application of full-time enrollment status in COD origination records for the 2022–2023 academic year. In response, the Financial Aid Office (FAO) is committed to strengthening its policies and procedures to ensure accuracy, compliance, and proper stewardship of the Title IV funds. To this end, the College will implement the following corrective actions: 1. Policy and Procedure Enhancement a. The FAO will develop and implement a formal Standard Operating Procedure (SOP) for COD reporting. This SOP will include: • A COA validation checklist to ensure the correct, current year COA from the approved financial aid handbook is applied. • The college has continuously considered the applicants’ enrollment status (full-time, ¾-time, half-time, or less-than-half-time) when determining the cost of attendance and awards but publishes only one cost of attendance for full time for the purpose of illustration. Hence, the college will start publishing all COA for all enrollment categories in the student financial aid handbook as a published guideline for awarding • A timeline that aligns record origination with student registration/enrollment confirmation to minimize errors and fully utilize the published Pell Recalculation Date (PRD) in the student financial aid handbook b. The SOP will be reviewed annually. 2. Staff Training and Certification a. FAO staff will participate in mandatory annual internal training and refresher workshops on the EDExpress system, COD reporting procedures, and Title IV compliance. The first round of enhanced training will be completed by August 30, 2025]. Staff will also complete Federal Student Aid (FSA) training modules related to COD and verification processes to ensure understanding of federal expectations and system updates. 3. Manual Data Verification Protocol • The Financial Aid Office (FAO) will implement a structured manual data verification protocol to ensure accuracy when transferring information from the Student Information System (SIS) to EDExpress. This protocol will include: Use of pre-submission checklists to verify each student’s cost of attendance (COA), enrollment status, and other required data fields against the official records in the SIS. • Designated FAO staff will perform a two-tiered review process, where one staff member enters data and another independently verifies accuracy prior to COD submission. • Maintenance of record logs for each batch of COD submissions, documenting the review steps taken and any discrepancies corrected before submission. 4. Oversight and Accountability a. The Director of the Financial Aid Office (FAO) will be responsible for monitoring adherence to COD reporting requirements to ensure accuracy and compliance. This includes tracking staff training completion related to EDExpress and Title IV regulations, conducting quarterly internal reviews of origination and disbursement records, and verifying the correct use of current cost of attendance figures and enrollment status classifications. The Director will document findings, implement corrective actions as needed, and provide quarterly progress reports to the Vice President for Enrollment Management and Student Services (VPEMSS). Contact: VPEMSS Completion Date: September 30, 2025

View Audit 361393

Finding 570382 (2023-030)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Reporting Significant Deficiency

Annual and Quarterly Reporting Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Recommendation: We recommend the University should implement and maintain an effective system of internal controls over the administration of ...

Annual and Quarterly Reporting Federal Agency: Department of Education Federal Program Name: Education Stabilization Fund Assistance Listing Number: 84.425 Recommendation: We recommend the University should implement and maintain an effective system of internal controls over the administration of HEERF funds to ensure funds are reported accurately and timely, in accordance with grant requirements. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: KSU Grants Accounting will maintain proper documentation for HEERF reporting. Grants Accounting will monitor HEERF funds to ensure compliance with guidelines. KSU will assign responsibility for Direct Outreach to appropriate employees in Student Financial Aid and provide training on job duties. Grants Accounting will follow‐up to verify corrections needed for previous reports, correct reports, and submit corrected reports. Name(s) of the contact person(s) responsible for corrective action: Dorothy Daley, Director of Grants; Varah Barnett, Financial Aid Director Planned completion date for corrective action plan: December 31, 2025

View Audit 361386

Finding 570381 (2023-029)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties § 200.403

Supporting Documentation Federal Agency: Department of Agriculture Federal Program Name: Supplemental Nutritional Assistance Program (SNAP) Assistance Listing Number: 10.561 Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card...

Supporting Documentation Federal Agency: Department of Agriculture Federal Program Name: Supplemental Nutritional Assistance Program (SNAP) Assistance Listing Number: 10.561 Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is improving its processes surrounding obtaining supporting receipts from employees who check out a Kroger GoCard. Procedures are in place to reconcile the Expense Log to receipts on a weekly basis to discover any missing documents much sooner to allow Purchasing to retrieve a copy from the store or the Kroger web site. Name(s) of the contact person(s) responsible for corrective action: Fran Pinkston, Director of Purchasing & Procurement Planned completion date for corrective action plan: December 31, 2025

View Audit 361386

Finding 570309 (2023-027)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Significant Deficiency Internal Control / Segregation of Duties § 200.403

Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We a...

Supporting Documentation Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University is improving its processes surrounding obtaining supporting receipts from employees who check out a Kroger GoCard. Procedures are in place to reconcile the Expense Log to receipts on a weekly basis to discover any missing documents much sooner to allow Purchasing to retrieve a copy from the store or the Kroger web site. Name(s) of the contact person(s) responsible for corrective action: Fran Pinkston, Director of Purchasing & Procurement 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 570225 (2023-020)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Student Financial Aid Significant Deficiency

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

Questioned Costs Student Financial Aid Significant Deficiency

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 570213 (2023-015)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Student Financial Aid Significant Deficiency

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

Corrective Action Plans

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