Condition and context: The University transferred $633,744.80 of HEERF Student Aid funds to the Kentucky State University Foundation for the purpose of holding and releasing funds to students. $146,242.20 of checks distributed to students did not clear, and these funds were held in an interest-bearing account. As of September 15, 2023, accrued interest totaled $49,145.32. The University did not refund the portion of the HEERF award that could not be disbursed back to the Department of Education. The University also did not remit the accrued interest.
Recommendation: We recommend the University complete the refund procedures for the funds unable to be disbursed and the accrued interest. Additionally, the University should establish a plan for the orderly distribution of the remaining balance of HEERF funds.
Status: Resolved. The refund for $146,242.20 and the refund for $49,145.32 were both completed on September 15, 2023.
140.