Corrective Action Plans

Finding 570233 (2023-024)

Significant Deficiency 2023

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

Finding 570208 (2023-013)

Significant Deficiency 2023

Kentucky State University

KY

Questioned Costs Student Financial Aid Significant Deficiency

Awarding of Pell Grant Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program Assistance Listing Number: 84.063 Recommendation: We recommend management review individual student calculations of Pell awards to ensure no additional errors in awards disbursed to...

Awarding of Pell Grant Federal Agency: U.S. Department of Education Federal Program Name: Federal Pell Grant Program Assistance Listing Number: 84.063 Recommendation: We recommend management review individual student calculations of Pell awards to ensure no additional errors in awards disbursed to students. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: The University has implemented internal controls within the Banner system that will not allow a miscalculation to occur. 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 Questioned Costs: $1

Finding 570204 (2023-012)

Significant Deficiency 2023

Kentucky State University

KY

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

Verification 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: ...

Verification 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 retain electronic files of student verification documentation more securely within school systems/networks. 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 regarding document retention to ensure that student statements are properly processed and retained. The University now also uploads all files to a central share drive for record keeping purposes. 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 563931 (2023-013)

Significant Deficiency 2023

Barclay College

KS

Student Financial Aid Cash Management

Cash Management Planned Corrective Action: The reconciliation process will be reviewed and any deficiencies will be corrected to assure funding is drawn and disbursed within three days of receipt. Student disbursement reports will be reviewed to determine drawdown amounts before making draws from G5...

Cash Management Planned Corrective Action: The reconciliation process will be reviewed and any deficiencies will be corrected to assure funding is drawn and disbursed within three days of receipt. Student disbursement reports will be reviewed to determine drawdown amounts before making draws from G5. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563922 (2023-011)

Material Weakness 2023

Barclay College

KS

Student Financial Aid Material Weakness

Return of Title IV (R2T4) Planned Corrective Action: A process will be implemented to run a 0-credit report at the end of each semester. This will ensure withdrawals are followed up on and that R2T4s are completed timely, if required. A process will be implanted to track student attendance in class...

Return of Title IV (R2T4) Planned Corrective Action: A process will be implemented to run a 0-credit report at the end of each semester. This will ensure withdrawals are followed up on and that R2T4s are completed timely, if required. A process will be implanted to track student attendance in classes. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563920 (2023-010)

Material Weakness 2023

Barclay College

KS

Reporting Student Financial Aid Subrecipient Monitoring

Common Origination and Disbursement (COD) Reporting and Reconciliations Planned Corrective Action: Procedures will be implemented to monthly reconcile FDL and Pell disbursements to student accounts with disbursements reported to COD. Person Responsible for Corrective Action Plan: Lee Anders, Vice Pr...

Common Origination and Disbursement (COD) Reporting and Reconciliations Planned Corrective Action: Procedures will be implemented to monthly reconcile FDL and Pell disbursements to student accounts with disbursements reported to COD. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563919 (2023-009)

Material Weakness 2023

Barclay College

KS

Questioned Costs Student Financial Aid Eligibility

Incorrect Pell Calculations Planned Corrective Action: A process will be implemented to verify Pell is correctly awarded before disbursements are made. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096 Questioned Costs: $1

Finding 563918 (2023-008)

Material Weakness 2023

Barclay College

KS

Questioned Costs Student Financial Aid Material Weakness

Need Analysis Planned Corrective Action: All scholarships will be marked as estimated financial assistance and an awarding check for need will be done accurately before final distribution. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Da...

Need Analysis Planned Corrective Action: All scholarships will be marked as estimated financial assistance and an awarding check for need will be done accurately before final distribution. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096 Questioned Costs: $1

Finding 563916 (2023-007)

Material Weakness 2023

Barclay College

KS

Student Financial Aid Reporting Matching / Level of Effort / Earmarking

Enrollment Reporting to NSLDS Planned Corrective Action: A process will be created to ensure enrollment is reported timely and accurately. Spot checks of NSLDS will be performed on enrollment status throughout the year. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for B...

Enrollment Reporting to NSLDS Planned Corrective Action: A process will be created to ensure enrollment is reported timely and accurately. Spot checks of NSLDS will be performed on enrollment status throughout the year. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563911 (2023-006)

Material Weakness 2023

Barclay College

KS

Student Financial Aid Eligibility Material Weakness

ISIR Comment Resolution Planned Corrective Action: All ISIR comment codes will be resolved before disbursement of federal aid to students. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563906 (2023-005)

Material Weakness 2023

Barclay College

KS

Eligibility Student Financial Aid Material Weakness

Satisfactory Academic Progress Planned Corrective Action: The SAP policy will be reviewed or created as needed and a procedure will be implemented based on that policy. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09...

Satisfactory Academic Progress Planned Corrective Action: The SAP policy will be reviewed or created as needed and a procedure will be implemented based on that policy. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 563901 (2023-004)

Material Weakness 2023

Barclay College

KS

Student Financial Aid Material Weakness

Lack of Administrative Capability Planned Corrective Action: The financial aid officer will participate in trainings specific to knowledge gaps. In addition, monthly entries will be made in the general ledger for financial aid activity and monthly balances will be reconciled between the general ledg...

Lack of Administrative Capability Planned Corrective Action: The financial aid officer will participate in trainings specific to knowledge gaps. In addition, monthly entries will be made in the general ledger for financial aid activity and monthly balances will be reconciled between the general ledger and financial aid software. Person Responsible for Corrective Action Plan: Lee Anders, Vice President for Business Services Anticipated Date of Completion: 09/30/25

View Audit 358096

Finding 561616 (2023-006)

Significant Deficiency 2023

Ramsey County

MN

Internal Control / Segregation of Duties Student Financial Aid Eligibility § 200.303

Finding Number: 2023-006 Finding Title: Reporting – DHS Social Service Fund (DHS-2556) Program: 93.658 Foster Care – Title IV-E Name of Contact Person Responsible for Corrective Action: Janelle White – Controller for Ramsey County’s Health & Wellness Service Team Enrique Rivera – Fiscal Services ...

Finding Number: 2023-006 Finding Title: Reporting – DHS Social Service Fund (DHS-2556) Program: 93.658 Foster Care – Title IV-E Name of Contact Person Responsible for Corrective Action: Janelle White – Controller for Ramsey County’s Health & Wellness Service Team Enrique Rivera – Fiscal Services Manager for Ramsey County’s Health & Wellness Service Team Corrective Action Planned: Starting in the third quarter of 2024, Ramsey County instituted an additional verification step in the review process to support the determination of accurate cost pool categorization of reimbursable costs for the Random Moment Time Study Reports cost reports. The additional step will be to confirm that on the Summary Tab of the Quarterly Payroll file, the cost codes lines are in sequential order and that the corresponding expense totals match the cost code. The Senior Accountant will do the first review of this step, and the Fiscal Manager will complete the second review. The error on the 2nd quarter 2023 report was remedied and resubmitted in the 2nd quarter of 2024. Anticipated Completion Date: July of 2024 when the 2nd quarter DHS-2556 and DHS 2550 are due to be complete and finalized.

View Audit 357223

Finding 555631 (2023-012)

None 2023

Sullivan County Community College

NY

Student Financial Aid Matching / Level of Effort / Earmarking

The College will develop and followed detailed controls over grants, federal requirements accomplished by 6‐1‐2025.

View Audit 354200

Finding 555628 (2023-009)

Significant Deficiency 2023

Sullivan County Community College

NY

Student Financial Aid Matching / Level of Effort / Earmarking

The College will continue to liquidate Perkins loans and verify all information received from the loan servicer is accurate. A reconcile of the information will be reviewed upon receiving this information from the loan servicer. This will be accomplished by 8/31/24.

View Audit 354200

Corrective Action Plans

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