Finding 1175192 (2025-001)

Material Weakness Repeat Finding
Requirement
C
Questioned Costs
-
Year
2025
Accepted
2026-02-24
Audit: 388821
Organization: Keystone College (PA)

AI Summary

  • Core Issue: Two students did not receive their Title IV fund credit balances on time.
  • Impacted Requirements: The College failed to pay credit balances within the required 14-day timeframe.
  • Recommended Follow-up: Review and reinforce procedures to ensure timely payments for all students in the future.

Finding Text

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 authorized charges assessed 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 that was after the first day of class. Condition: For two students out of twenty-five selected for testing, receipt of Title IV funds created an overpayment to the students' account which was returned to the students, but not in accordance with the criteria noted above. Cause: Manamement of the College has implemented procedures to ensure credit balances are returned within the required time frame. these students were identified and corrected after the procedures were implemented. 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.

Corrective Action Plan

The records in the student sample that were tested were from the Fall semester 2024. In addition to strengthening controls and staff training, the College completed an internal audit on 4/30/25 of all student accounts to ensure compliance with cash management practices for future federal awards and corrected any findings. As a means of maintaining compliance under the Heightened Cash Monitoring 1 Payment Method (HCM1) as described under 34 C.F.R. § 668.162(d)(1), Keystone first makes disbursements to eligible students and parents and pays any remaining credit balances before it requests or receives funds for the amount of those disbursements from the Department. The College’s practices and internal controls for Title IV, HEA program funds received from the Department reflect the compliance criteria as required.

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 1175191 2025-001
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $4.27M
84.063 FEDERAL PELL GRANT PROGRAM $2.14M
84.038 FEDERAL PERKINS LOAN PROGRAM_FEDERAL CAPITAL CONTRIBUTIONS $802,392
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $115,626
23.002 APPALACHIAN AREA DEVELOPMENT $72,355
84.033 FEDERAL WORK-STUDY PROGRAM $52,518
10.558 CHILD AND ADULT CARE FOOD PROGRAM $36,249