FAC Explorer

Audit 318303

FY End
2023-05-31
Total Expended
$10.15M
Findings
2
Programs
8
Organization: Keystone College (PA)
Year: 2023 Accepted: 2024-08-30
Auditor: Kohanski & Company PC

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
485527 2023-004 Significant Deficiency - C
1061969 2023-004 Significant Deficiency - C

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $6.73M Yes 1
84.063 Federal Pell Grant Program $2.23M Yes 0
84.038 Federal Perkins Loan Program $837,445 Yes 0
23.002 Appalachian Area Development $107,650 - 0
84.007 Federal Supplemental Educational Opportunity Grants $88,145 Yes 0
84.033 Federal Work-Study Program $53,314 Yes 0
10.558 Child and Adult Care Food Program $25,307 - 0
93.558 Temporary Assistance for Needy Families $5,525 - 0

Contacts

Name Title Type
EVNRN16ZFLK4 John Pullo Auditee
5709458505 Kelley Lindsay Auditor
No contacts on file

Notes to SEFA

Title: Basis of Presentation Accounting Policies: Expenditures reported on the Schedule arereported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not alowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The accompanying schedule of expenditures of federal awards (the "Schedule") includes federal award activity of Keystone College (the "College") under programs of the federal government for the year ended May 31, 2023. The information is the Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements of Federal Awards ("Uniform Guidance"). Because this Schedule presents only a select portion of the operations of the College, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the College.
Title: Subrecipients Accounting Policies: Expenditures reported on the Schedule arereported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not alowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The College did not pass any awards through to subrecipients.
Title: Federal Loan Programs Accounting Policies: Expenditures reported on the Schedule arereported on the cash basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not alowable or are limited as to reimbursement. De Minimis Rate Used: N Rate Explanation: The College did not elect to use the 10% de minimis indirect cost rate. The Federal Perkins Loan Program (84.038) is administered directly by the College, and balances and transactions relating to this program are included in the College's financial statements. Loans outstnding at the beginning of the year and loans made during the year are included in the federal expenditures presented in the Schedule. Federal Perkins loans outstanding as of May 31, 2023 totaled $837,444. Total loans granted under the Federal Direct Student Loan Program, which were not made by the College but were received by its students were $6,728,643 for the year ended May 31, 2023. The total outstanding loan balance under the Economic Injury Disaster Loan Program is $2,000,000.

Finding Details

Finding 2023-004
Criteria: When Title IV funds are credited to a student account and they exceed the amount of tuition and fees, room and board, and other authroized charges assessed to the student, a credit balance is created. The institution must pay the resulting credit balance directly to the student or parent borrower within 14 days after (1) the first day of class or a payment period if the credit balance occurred on or before that day, or (2) the balance occured if that was after the first day of class. Condition: For four students out of forty tested, receipt of Title IV funds created an over payment to the students' account which was not returned to the student in accordance with the criteria noted above. Cause: Management of the College incorrectly interpreted the requirements. Effect: The College was not in compliance with the requirements and students did not timely receive the Title IV funds to which they were entitled.
Finding 2023-004
Criteria: When Title IV funds are credited to a student account and they exceed the amount of tuition and fees, room and board, and other authroized charges assessed to the student, a credit balance is created. The institution must pay the resulting credit balance directly to the student or parent borrower within 14 days after (1) the first day of class or a payment period if the credit balance occurred on or before that day, or (2) the balance occured if that was after the first day of class. Condition: For four students out of forty tested, receipt of Title IV funds created an over payment to the students' account which was not returned to the student in accordance with the criteria noted above. Cause: Management of the College incorrectly interpreted the requirements. Effect: The College was not in compliance with the requirements and students did not timely receive the Title IV funds to which they were entitled.