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 – 027 – Supporting Documentation

Federal Agency: Various

Federal Program Name: Research and Development Cluster

Assistance Listing Number: Various

Federal Award Identification Number and Year: Various

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

Type of Finding:

• Significant Deficiency in Internal Control over Compliance
• Other Matters

Criteria or specific requirement: 2 CFR part 200.403(g) states costs must meet criteria to be allowable under federal awards including be adequately documented.

Condition: Credit card statements and receipts for transactions in which credit cards were used were not retained.

Questioned costs: None.

Context: During our testing, it was noted that 1 out of the 40 tested that the University did not maintain proper support for the expenditure.

Cause: The University did not maintain documentation to support the expenditure.

Effect: The University did not follow the policies and procedures in place to maintain supporting documentation for expenditures.

Repeat Finding: No.

Recommendation: We recommend the University develop a procedure for ensuring all expenditures made via corporate credit card receive appropriate approval. We also recommend management maintain proper recordkeeping and retention of documentation.

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

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