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 – 017 – HEERF Annual and Quarterly Reporting (Continued)

Context: During our testing of quarterly reports, one of the three reports tested was not posted on the University's website within ten days of the end of the quarter.

During our testing of quarterly reports, three reports tested did not have a supervisor review documented.

Cause: The University did not have the controls in place to ensure reporting requirements under the CARES Act 18004(e) and the CRRSAA 314(e) were being followed and met.

Effect: The University is not in compliance with the reporting requirements for HEERF funds specified by the Department of Education.

Repeat Finding: Yes, 2023-030

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.

Views of responsible officials: There is no disagreement with the audit finding.