KENTUCKY STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (Continued) June 30, 2021

Finding 2021-016: Exit Counseling Notification for Withdrawn Students

Information on the Federal Program: Federal Direct Student Loan Program (CFDA Number 84.268) – U.S. Department of Education

Criteria: 34 CFR 685.304(b)(3)

If a student borrower withdraws from school, exit counseling must be provided either electronically, by mailing, or by email to the student borrower within 30 days.

Condition and context: Out of a population of 34 withdrawn students, we sampled 7. Out of this sample, the University failed to correctly notify 2 students of exit counseling.

Questioned Cost: $0

Cause: The University did not have a control in place to ensure exit counseling notifications were sent to withdrawn students timely.

Effect: The University is not in compliance with Title 34, Section 685.304 with respect to the referenced withdrawn students.

Recommendation: We recommend that the University establish controls to ensure that exit counseling notifications are sent timely once a student has been identified as a withdrawal.

Management Response: The University concurs with the finding The University is currently utilizing the Banner Optimization to develop a message alert within the Student Portal (Wired) when a withdrawal date is entered. This will be fully functional in FY25.

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