11 KAR 16:020. Early Childhood Development Scholarship Program disbursement process

Link to law: http://www.lrc.ky.gov/kar/011/016/020.htm
Published: 2015

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      11 KAR 16:020. Early Childhood

Development Scholarship Program disbursement process.

 

      RELATES TO: KRS 164.518

      STATUTORY AUTHORITY: KRS 164.518(3),

164.748(4)

      NECESSITY, FUNCTION, AND CONFORMITY: KRS

164.518(3) requires the authority to promulgate administrative regulations for

administration of the Early Childhood Development Scholarship Program. This

administrative regulation establishes procedures for disbursement of the monies

awarded under the Early Childhood Development Scholarship Program.

 

      Section 1. Disbursement Process. (1)

Within thirty (30) days following receipt by the authority of the information

required by 11 KAR 16:010, Section 3(4), the authority shall remit monies

awarded under the Early Childhood Development Scholarship Program by electronic

funds transfer delivered to the participating institution on behalf of the

scholarship recipient for subsequent delivery to the eligible scholarship

recipient.

      (2) The authority shall send to the

participating educational institution a disbursement roster indicating each

recipient's name, Social Security number, and scholarship amount.

      (3) The participating educational

institution shall hold the funds solely for the benefit of the scholarship

recipient and the authority until the student has registered for classes for

the academic term for which the scholarship is awarded.

      (4)(a) Scholarship proceeds shall be used

by the recipient only for payment of tuition to the participating educational institution.

      (b) Upon the scholarship recipient’s

registration, the participating educational institution shall:

      1. Credit the scholarship recipient's

account; and

      2. Notify the recipient in writing that

it has credited the account.

      (c) The participating institution shall

return to the authority scholarship funds that exceed the amount of tuition

charged by the institution to the scholarship recipient for the academic term

based upon the recipient’s enrollment status at the time of registration.

      (d) The authority may, without precluding

other remedies provided in 11 KAR 4:020, recover from the participating

institution scholarship funds not returned pursuant to paragraph (c) of this

subsection by setoff against any other funds payable to the participating

institution by the authority.

 

      Section 2. Disbursement Roster (1) The

participating educational institution shall indicate the following on the

disbursement roster:

      (a) The date funds were either credited

to the scholarship recipient's account or disbursed to the recipient;

      (b) The name of a recipient for whom

funds are being returned;

      (c) The amount being returned; and

      (d) The reason funds are being returned.

      (2) The participating educational

institution shall return to the authority, according to instructions attached

to the roster, all funds advanced that remain undisbursed to students who were

awarded scholarships. The participating institution shall retain a copy of the

disbursement roster for its records. The participating educational institution

shall return the undisbursed scholarship funds to the authority by electronic

funds transfer.

      (3) The instructions accompanying the

disbursement roster shall specify:

      (a) Conditions under which the

scholarship shall be disbursed to the benefit of the scholarship recipient;

      (b) Conditions under which the scholarship

funds shall be returned to the authority; and

      (c) The date by which the roster and any

undisbursed funds shall be returned to the authority.

      (4) A participating educational

institution that has not returned a disbursement roster or completed it

according to the instructions shall not receive additional scholarship funds

until it has complied with the instructions identified in subsection (3) of

this section. The authority may withhold any services and funds from the

educational institution from the due date until the roster and all funds

advanced, that remain undisbursed to eligible students, are received by the

authority.

 

      Section 3. Misdelivery of Funds. The

participating institution shall be liable to the authority for delivery of

scholarship funds to the wrong person or to an ineligible student and shall

make restitution to the authority of an amount improperly delivered. Failure of

the participating institution to make restitution as required shall, without

precluding other remedies, be deemed cause for limitation, suspension, or

termination of the participation of the institution in accordance with 11 KAR

4:020. (27 Ky.R. 1367; Am. 1824; eff. 2-5-2001.)