KENTUCKY STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2024
Section III – Findings and Questioned Costs – Major Federal Programs (Continued)
2024 – 015 – Perkins Compliance Attestation Requirements Review (Continued)
Recommendation: We recommend reviewing procedures and requirements regarding Perkins third party service providers and ensure compliance with regulations.
Views of responsible officials: There is no disagreement with the audit finding.
2024 – 016 – Perkins Reconciliation
Federal Agency: US Department of Education
Federal Program Name: Federal Perkins Loan Program
Assistance Listing Number: 84.038
Federal Award Identification Number and Year: N/A
Award Period: July 1, 2023 – June 30, 2024
Type of Finding:
Significant Deficiency in Internal Control over Compliance
Other Matters
Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.25(a), an institution may enter into a written contract with a third-party servicer for the administration of any aspect of the institution's participation in any Title IV, HEA program only to the extent that the servicer's eligibility to contract with the institution has not been limited, suspended, or terminated. When an institution uses a third-party servicer for its Perkins Loan program, the institution must reconcile funds that are reported by the third-party servicer to the University's accounting records.
Condition: The University did not reconcile the Perkins Loan Program funds that are recorded on the University's accounting records to the third party servicer's report. There was also no review of the process.
Questioned costs: None
Context: During our testing, we noted that a control was not identified pertaining to reconciliation of Perkins loans from third party servicer report to the University's accounting records.
Cause: The University did not have a control in place to ensure the reconciliation of Perkins loans from third party servicer report to the University's accounting records.
Effect: The University accounting records did not reflect the current information.
Repeat Finding: Yes, 2023-022