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 – 023 – Fiscal Operations Report and Application to Participate (FISAP)

Federal Agency: U.S. Department of Education

Federal Program Name: Federal Supplemental Educational Opportunity Grant Program, Federal Pell Grant Program; Federal Direct Student Loans; Federal Work Study Program; Federal Perkins Loan Program

Assistance Listing Number: 84.007; 84.063; 84.268; 84.033; 84.038

Federal Award Identification Number and Year: P007A171583; P007A231583; P063P190147; P063P210147; P063P220147; P063P230147; P063Q210147; P063Q220147; P268K230147; P268K240147; P033A211583; P033A231583 - 2023

Award Period: July 1, 2022 – June 30, 2023

Type of Finding:

• Significant Deficiency in Internal Control over Compliance
• Other Matters

Criteria or specific requirement: The Code of Federal Regulations, 34 CFR 668.24, a school must keep fiscal records to demonstrate its proper use of FSA funds. A school's fiscal records must provide a clear audit trail that shows that funds were received, managed, disbursed, and returned in accordance with federal requirements.

Condition: The University did not maintain proper support for the FISAP.

Questioned costs: None.

Context: During our testing of the FISAP, the University could not provide documentation for the amounts reported on the FISAP.

Cause: The University could not provide any documentation supporting the amounts disclosed on the FISAP.

Effect: The University is not complying with regulations on maintaining audit trail documentation.

Repeat Finding: No.

Recommendation: We recommend management maintain and safeguard all necessary data and documentation to support the FISAP.

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

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