Corrective Action Plans

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 570504 (2023-002)

Material Weakness 2023

City of Princeton

IN

Procurement, Suspension & Debarment § 200.303

FINDING 2023-002 Information on the federal program: Subject: Coronavirus State and Local Fiscal Recovery Funds - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Treasury Assistance Listing Number: 21 .027 Federal Award Number: CY 2021 Pass-Through Entity: Direct Grant Co...

FINDING 2023-002 Information on the federal program: Subject: Coronavirus State and Local Fiscal Recovery Funds - Procurement and Suspension and Debarment Federal Agency: U.S. Department of Treasury Assistance Listing Number: 21 .027 Federal Award Number: CY 2021 Pass-Through Entity: Direct Grant Compliance Requirements: Procurement and Suspension and Debarment Audit Findings: Material Weakness, Other Matters Condition: An effective internal control system was not in place at the City to ensure compliance with requirements related to the grant agreement and the respective procurement method of the Procurement and Suspension and Debarment compliance requirement. Context: Two procurements were selected for testing in the current year. For the small purchase transaction, management only provided the contract. No other procurement support showing evidence of bids was provided. Additionally, support showing that the City had performed a suspension and debarment check was not provided. For the simplified acquisition transaction, management performed procurement for similar services in 2016. The vendor selected in 2016 was used for the transaction charged to the federal grant without obtaining additional bids. Additionally, support showing that the City had performed a suspension and debarment check was not provided. Views of Responsible Officials: We concur with the finding. Description of Corrective Action Plan: Management will ensure that procurement procedures are done for each contract and suspension and debarment checks are documented. Responsible Party and Timeline for Completion: The Clerk-Treasurer is the responsible party. The corrective action plan will go into effect during calendar year 2025.

View Audit 361491

Finding 570489 (2023-001)

Significant Deficiency 2023

Washington County Arkansas

AR

Reporting

Upon assuming office, the current adminstration of Washington County discovered that American Rescue Plan Aact (ARPA) funds received by the county had been inadvertently omitted from the Federal Single Audit for 2023, an issue that originated under the previous adminstration. We immediately took c...

Upon assuming office, the current adminstration of Washington County discovered that American Rescue Plan Aact (ARPA) funds received by the county had been inadvertently omitted from the Federal Single Audit for 2023, an issue that originated under the previous adminstration. We immediately took corrective actions to rectify this oversight and ensure that uch an error does not occur again. The prevent future omissions, the County has established a comprehensive review process to identify and correct any discrepancies in its Schedule of Expenditures and Federal Awards (SEFA) reporting. This process includes detailed reconciliations of all grant activity, ensuring that federal funds- such as ARPA funds- are accurately identified and included in the audit process. Additionally, the County has enhanced its collaboration with external auditors and improved communications across alll financially aligned departments. These steps strengthen our ability to thoroughly identify and report federal awards subject to the Federal Single Audit Process. The County takes its responsibility as a fiduciary custodian of public funds very seriously. We are confident that all ARPA funds have been expended efficiently and in full compliance with federal regulations. The omission was solely a reporting error, and no public funds are missing or unaccounted for. Since taking office, the current administration has made transparency and accountability top priorities, and we are committed to continuously improving our processes to uphold the public's trust.

View Audit 361442

Finding 570438 (2023-001)

Material Weakness 2023

Village of Middleburgh

NY

Upon consultation with engineering firms and state regulators who frequently are involved with projects in which the Federal Single Audit applies, it is the Village of Middleburgh’s understanding that the Federal Single Audit applies to entities that expend $750,000 or more in Federal dollars. The V...

Upon consultation with engineering firms and state regulators who frequently are involved with projects in which the Federal Single Audit applies, it is the Village of Middleburgh’s understanding that the Federal Single Audit applies to entities that expend $750,000 or more in Federal dollars. The Village of Middleburgh did not receive Federal money until 2023. Furthermore, the Village made a good faith effort to contact officials in the New York State Comptroller’s Office, New York Conference of Mayors, and the United States Department of Agriculture (USDA) to substantiate the concerns of Mostert, Manzanero & Scott, LLP, but no guidance was offered that contradicted our understanding. Therefore, it was not possible for the Village to have expended Federal money for the years 2021-22 since the only funds received were New York State issued interim financing. Thus, the Village is not subject to the Federal Single Audit until it received $1,105,759.45 and expended $914,500.80 in USDA issued Federal money in 2023.

View Audit 361395

Finding 570433 (2023-009)

Significant Deficiency 2023

College of Micronesia - Fsm

FM

Procurement, Suspension & Debarment

Finding 2023-09 - Procurement, Suspension, and Debarment Recommendation The College should develop and implement a formal procedure for verifying the debarment, suspension, or exclusion status of entities prior to entering into covered transactions, which includes regular checks against the System f...

Finding 2023-09 - Procurement, Suspension, and Debarment Recommendation The College should develop and implement a formal procedure for verifying the debarment, suspension, or exclusion status of entities prior to entering into covered transactions, which includes regular checks against the System for Award Management (SAM) database and other relevant resources. Response The College acknowledges the findings and is fully committed to strengthening its procurement process by implementing the following strategic improvements: 1) Incorporating the verification of the status of contractors, vendors, and other third parties in SAM.gov into the procurement procedure. Procurement staff will conduct verification prior to issuance of any purchase order and document SAM.gov screening on all procurement files. Contact: Director of Procurement & Property Management Office Completion Date: September 30, 2025

View Audit 361393

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 570431 (2023-007)

Material Weakness 2023

College of Micronesia - Fsm

FM

Student Financial Aid Special Tests & Provisions Subrecipient Monitoring

Finding 2023-07 - Special Tests and Provisions: Disbursements to or on Behalf of Students Recommendation The College should implement a comprehensive communication strategy to ensure that all students receive clear and timely notifications regarding their Title IV funds. This should include the deve...

Finding 2023-07 - Special Tests and Provisions: Disbursements to or on Behalf of Students Recommendation The College should implement a comprehensive communication strategy to ensure that all students receive clear and timely notifications regarding their Title IV funds. This should include the development of award letter of college financing plans that outline the amount and type of funds, as well as the disbursement schedule. Additionally, the College should establish a monitoring system to ensure that credit balances are disbursed within the required 14-day time frame to maintain compliance with federal records. Response The College acknowledges the finding and has initiated a process to address them. A formal request has been submitted to the SIS program developer for the implementation of a notification feature. The SIS vendor has confirmed development will be completed by July 1, 2025. This feature will ensure that students receive email notifications when they are awarded and reimbursed for any overpayments. Furthermore, we will establish an enhanced level of monitoring to ensure that credit balances are disbursed within the designated 14-day timeframe. Contact: Comptroller Completion Date: September 30, 2025

View Audit 361393

Finding 570430 (2023-006)

Material Weakness 2023

College of Micronesia - Fsm

FM

Student Financial Aid Subrecipient Monitoring Special Tests & Provisions

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

Questioned Costs Student Financial Aid 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 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 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 570382 (2023-030)

Significant Deficiency 2023

Kentucky State University

KY

Reporting Significant Deficiency Internal Control / Segregation of Duties

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

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 570345 (2023-028)

Significant Deficiency 2023

Kentucky State University

KY

Equipment & Real Property Management Subrecipient Monitoring § 200.313

Property and Equipment Management Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend management implement procedures for physical inventory to be taken within a two‐year time frame as well as maintain evide...

Property and Equipment Management Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend management implement procedures for physical inventory to be taken within a two‐year time frame as well as maintain evidence of assets possession such as photos of the property and equipment. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Led by the Director of Capital Planning and Facilities Management, KSU has hired an inventory specialist to improve physical inventory documentation and maintenance. In addition, The Controller is in the process of reevaluating and designing internal controls surrounding capital and non‐capital inventory in conjunction with the President. Name(s) of the contact person(s) responsible for corrective action: Melissa Hicks – Controller in coordination with Jennifer Linton, Director of Capital Planning and Facilities Management. Planned completion date for corrective action plan: June 30, 2026

View Audit 361386

Finding 570309 (2023-027)

Significant Deficiency 2023

Kentucky State University

KY

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 570273 (2023-026)

Significant Deficiency 2023

Kentucky State University

KY

Procurement, Suspension & Debarment Subrecipient Monitoring

Suspension and Debarment Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University review its policies relating to the retention of records to ensure support regarding the debarment status of vender...

Suspension and Debarment Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University review its policies relating to the retention of records to ensure support regarding the debarment status of venders is maintained. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: Although Banner cannot currently add the W‐9 or debarment information in Banner Document Management, the University has implemented additional procedures and buyers have been trained in checking SAM.gov for each federally funded Purchase Order. All W‐9 documents are currently stored on a shared drive for retrieval. 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 570237 (2023-025)

Significant Deficiency 2023

Kentucky State University

KY

Procurement, Suspension & Debarment § 200.320

Procurement Policy Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University review its procurement policy to insure it meets federal regulations. Explanation of disagreement with audit finding: Th...

Procurement Policy Federal Agency: Various Federal Program Name: Research and Development Cluster Assistance Listing Number: Various Recommendation: We recommend the University review its procurement policy to insure it meets federal regulations. Explanation of disagreement with audit finding: There is no disagreement with the audit finding. Action taken in response to finding: KSU will review its procurement policies to ensure that the policies are in compliance with uniform guidance requirements. 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 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

Corrective Action Plans

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