KENTUCKY STATE UNIVERSITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS (CONTINUED) YEAR ENDED JUNE 30, 2023

Section III – Findings and Questioned Costs – Major Federal Programs (Continued)

2023 – 018 – Enrollment Reporting to the National Student Loan Database System (NSLDS) (Continued)

Condition: Certain students' enrollment information was not reported accurately or timely to the NSLDS.

Questioned costs: None.

Context: The below was noted during testing:

• 4 students out of a sample of 16 students had an enrollment effective date in the campus-level and program-level records in the NSLDS that did not match what was reflected in the University's records.
• 1 student out of a sample of 16 students had an enrollment status in the campus-level and program-level records in the NSLDS that did not match what was reflected in the University's records.
• 16 students out of a sample of 16 students tested were not reported to the campus-level record in the NSLDS in a timely manner.
• 16 students out of a sample of 16 students tested were not certified at a minimum every 60 days to the campus-level record in the NSLDS in a timely manner.
• 2 students out of a sample of 16 students tested had an enrollment status effective date in the campus-level of the NSLDS that did not match the program-level of the NSLDS.

Cause: Management's procedures to report accurate and timely information to the NSLDS were not operating effectively.

Effect: Inaccurate reporting to the NSLDS can impact when students enter repayment periods or affect their interest rates.

Repeat Finding: Yes, 2022-010 and 2022-012.

Recommendation: We recommend the University evaluate its procedures and review policies in overseeing submissions to the NSLDS completed by the third-party servicer. Additionally, we recommend the University review its policies and procedures on reporting enrollment information to the NSLDS to ensure that all relevant information is being captured and reported timely in accordance with applicable regulations.

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

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