Finding 524628 (2024-002)

Significant Deficiency Repeat Finding
Requirement
C
Questioned Costs
-
Year
2024
Accepted
2025-02-27
Audit: 344059
Organization: Keystone College (PA)

AI Summary

  • Core Issue: One out of twenty-five students did not receive Title IV fund refunds on time, violating federal requirements.
  • Impacted Requirements: Institutions must pay credit balances to students or parents within 14 days of the relevant date.
  • Recommended Follow-Up: Review and reinforce procedures to ensure all credit balances are processed timely to maintain 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 one student out of twenty -five tested, receipt of Title IV funds created an over payment to the students' account which was returned to the student, but not in accordance with the criteria noted above. Cause: Management of the College has implemented procedures to ensure credit balances are returned within the required time frame. This student was 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

Management has strengthened controls and trained staff to ensure compliance with cash management practices for future federal awards.

Categories

Student Financial Aid Reporting

Other Findings in this Audit

  • 524629 2024-003
    Significant Deficiency
  • 524630 2024-004
    Significant Deficiency
  • 1101070 2024-002
    Significant Deficiency Repeat
  • 1101071 2024-003
    Significant Deficiency
  • 1101072 2024-004
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $5.35M
84.063 Federal Pell Grant Program $2.25M
84.038 Federal Perkins Loan Program_federal Capital Contributions $805,481
23.002 Appalachian Area Development $151,000
84.033 Federal Work-Study Program $75,769
84.007 Federal Supplemental Educational Opportunity Grants $63,000
10.558 Child and Adult Care Food Program $37,224