Finding 485527 (2023-004)

Significant Deficiency
Requirement
C
Questioned Costs
-
Year
2023
Accepted
2024-08-30
Audit: 318303
Organization: Keystone College (PA)

AI Summary

  • Core Issue: Four out of forty students did not receive their Title IV fund credit balances on time.
  • Impacted Requirements: Institutions must return excess Title IV funds to students within 14 days of creating a credit balance.
  • Recommended Follow-Up: Review and clarify management's understanding of Title IV fund requirements to ensure compliance.

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 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.

Corrective Action Plan

Administration will implement appropriate controls and train staff to ensure compliance with cash management practices for future federal awards.

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 1061969 2023-004
    Significant Deficiency

Programs in Audit

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