Kentucky Community and Technical College System

Finding 2019-001 - Verification Information on the Federal Program: Student Financial Aid Cluster (CFDA Numbers 84.007, 84.033, 84.063, 84.268) ? U.S. Department of Education Criteria: 34 CFR 668.59(b) ? Changes to FAFSA Information ? For the Federal Grant Pell Program, if an applicant?s FAFSA information changes as a result of verification, an institution must (1) recalculate the applicant's Federal Pell Grant on the basis of the EFC on the corrected valid SAR or valid ISIR; and(2)(i) disburse any additional funds under that award only if the institution receives a corrected valid SAR or valid ISIR for the applicant and only to the extent that additional funds are payable based on the recalculation; (ii) comply with the procedures specified in ?668.61 for an interim disbursement if, as a result of verification, the Federal Pell Grant award is reduced; or - (iii) comply with the procedures specified in 34 CFR 690.79 for an overpayment that is not an interim disbursement if, as a result of verification, the Federal Pell Grant award is reduced. Condition: The system-wide testing population consisted of all 16 colleges within the System. This condition was noted in relation to the student financial aid office of: Kentucky Community and Technical College ? System Office Southeast Kentucky Community and Technical College Western Kentucky Community and Technical College During our system-wide testing of verification, we noted two instances in which information obtained during the verification process conflicted with the applicant?s FAFSA information and the applicant?s SAR/ISIR was not updated to reflect the correct information. Questioned Cost: $0 Context: For two students in our system-wide, nonstatistical sample of 60 students, we noted one students? verification worksheet reflected a change in the AGI from the original SAR which was not properly updated by the College. The second students? verification worksheet reflected a change in the number of individuals in the household which was not properly updated by the College. In these two instances, the student?s EFC was $0 and there was no change in EFC or financial aid awarded with the updated information. Effect: The Colleges may not be in compliance with federal regulations. Cause: The verification worksheet was reviewed and approved by the System?s student financial aid office, however, the SAR was not properly updated. Repeat Finding: Yes. Finding 2018-001. Recommendation: We recommend management review internal controls surrounding the verification process and continue to provide periodic training to financial aid staff to ensure corrections found during the verification process are properly submitted.

Corrective action plan: The System Office of Student Financial Aid, and the individual colleges noted acknowledge the finding. The System Office of Financial Aid will, 1) Implement an internal verification review process by verification team members, and 2) Continue internal monthly training and increase outside verification training opportunities for financial aid staff to ensure corrections that are found during the verification process are properly submitted. The System Director of Financial Aid will be responsible for carrying out the corrective action plan with the support of the Director of Internal Audit to be implemented beginning with the Fall 2019 term and will be part of KCTCS? ongoing compliance efforts.

2018-001

Finding 2019-002 - Return Of Title IV Funds Information on the Federal Program: Student Financial Aid Cluster (CFDA Numbers 84.007, 84.033, 84.063, 84.268) ? U.S. Department of Education Criteria: Scheduled Breaks - 34 CFR 668.22(f)(2)(i) - If a student officially withdraws while on a scheduled break of five consecutive days or more, the withdrawal date is the last date of scheduled class attendance prior to the start of the scheduled break. Condition: During our testing of return of Title IV funds, we noted a control deficiency and an instance of noncompliance with federal compliance regulations. This condition was noted in relation to the following colleges: Kentucky Community and Technical College ? System Office Ashland Community and Technical College Questioned Cost: $79 (Known) Context: During our system-wide testing of return of funds, we selected 60 withdrawn students in our nonstatistical sample to test for internal controls and compliance with federal regulations. We noted one student who's returned aid was calculated using the withdrawal date of 3/11/19, which was during a scheduled break period. The actual withdrawal date for the return of funds calculation should have been the last day of scheduled attendance, which was 3/8/2019. Effect: The System may not be in compliance with federal regulations and may not return the appropriate amount of Title IV funds. Cause: While there is an automated control in place, the current functionality only warns a user that a withdrawal date falls within a scheduled institutional break but does not prevent the usage of the invalid date. There is also no secondary review of return of fund calculations to ensure the accuracy of calculation performed including withdrawal dates. Repeat Finding: No. Recommendation: We recommend that the System Financial Aid Office enhance the current automated control to prevent a user from entering a date that fall within a scheduled institutional break date. Views of responsible officials and planned corrective actions: Management acknowledges the finding. See corrective action plan.

Corrective action plan: The System Office of Student Financial Aid and individual college noted concur with the finding and will develop and implement an enhancement to the current automated control to prevent a user from entering a date that falls within a scheduled institutional break date. The System Director of Financial Aid will be responsible for carrying out the corrective action plan with the support of the Director of Internal Audit to be implemented beginning with the Fall 2019 term and will be part of KCTCS? ongoing compliance efforts.

GSA_MIGRATION

GSA_MIGRATION

2017-001

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

2016-001

GSA_MIGRATION

GSA_MIGRATION

2016-002

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

GSA_MIGRATION

2015-002, 2015-003, 2015-005, 2015-007