11 KAR 16:020. Early Childhood
Development Scholarship Program disbursement process.
RELATES TO: KRS 164.518
STATUTORY AUTHORITY: KRS 164.518(3),
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
(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
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
(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
(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
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.)