KENTUCKY STATE UNIVERSITY Prior Year Schedule of Findings and Questioned Costs, continued Year ended June 30, 2014

Finding 2013-004, continued:

Cause:

The cause of the finding is due to a lack of management oversight and internal controls in place to ensure that files verified are completed accurately.

Effect:

A student did not receive the full amount of Pell they were eligible for at the beginning of the school year.

Recommendation:

We recommend the University review its current procedures related to the verification process and make the necessary changes to ensure that each student file verified is accurate.

Current year status:

This finding was resolved in the current year.

Finding 2013-005:

Federal Program: U.S. Department of Education Federal Pell Grant Program, CFDA 84.063

Condition:

During the testing of Return of Title IV Funds, we noted one student for which the incorrect withdrawal date was used in the calculation.

Criteria:

Per the provisions of CFR 34 §668.22, the withdrawal date that should be used in the calculation of Return of Title IV Funds is the date, as determined by the institution, that the student otherwise provided official notification to the institution, in writing or orally, of his or her intent to withdraw.

Cause:

There is not a procedure in place to verify that the appropriate withdrawal date per the withdrawal form has been entered into the system.

Effect:

The provisions of CFR 34 §668.22 were not followed which caused a student's date of withdrawal to be incorrect when completing the Return of Title IV Funds calculation and an additional $67 needed to be returned by the University.

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