Finding 1204838 (2025-004)

Material Weakness Repeat Finding
Requirement
N
Questioned Costs
-
Year
2025
Accepted
2026-03-30
Audit: 396468
Organization: Stevenson University, Inc. (MD)
Auditor: BDO USA PC

AI Summary

  • Core Issue: The University failed to accurately calculate the return of Title IV funds for a student, leading to non-compliance with federal requirements.
  • Impacted Requirements: This finding relates to the calculation of earned Title IV aid based on withdrawal dates, as outlined in 34 CFR 668.22.
  • Recommended Follow-Up: Enhance policies for Title IV fund calculations and implement a double-check process to ensure accuracy and timely returns to the Department of Education.

Finding Text

FINDING 2025-004 Federal Program Information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loans (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Tests and Provisions – Return of Title IV Funds: The amount of earned Title IV grant or loan assistance is calculated by determining the percentage of Title IV grant or loan assistance that has been earned by the student and applying that percentage to the total amount of Title IV grant or loan assistance that was or could have been disbursed to the student for the payment period or period of enrollment as of the student’s withdrawal date. A student earns 100 percent if his or her withdrawal date is after the completion of 60 percent of (1) the calendar days in the payment period or period of enrollment for a program measured in credit hours, or (2) the clock hours scheduled to be completed for the payment period or period of enrollment for a program measured in clock hours (34 CFR 668.22(e)(2)). Otherwise, the percentage earned by the student is equal to the percentage (60 percent or less) of the payment period or period of enrollment that was completed as of the student’s withdrawal date. The percentage of Title IV grant or loan assistance that has not been earned by the student is the complement of one of these calculations. Standard term-based institutions must always use the payment period as the basis for the determination. The unearned amount of Title IV assistance to be returned is calculated by subtracting the amount of Title IV assistance earned by the student from the amount of Title IV aid that was disbursed to the student as of the date of the institution’s determination that the student withdrew (34 CFR 668.22(e)). Condition: The University did not properly calculate the amount to be returned for a certain student tested. Cause: Administrative oversight. Effect: The University was not in compliance with the return of Title IV funds requirements. Questioned Costs: Below reportable threshold. Context: For 1 of 6 students tested, the University did not properly calculate the amount of Title IV aid to be returned. Identification of Repeat Finding: This is a repeat of prior year finding 2024-006. Recommendation: We recommend the University enhance its policies and procedures over the return of Title IV fund calculations to ensure that returns of funds are calculated accurately and funds are returned to the ED within the required timeframe. Views of Responsible Officials and Planned Corrective Actions: We will implement a second check process after R2T4 has been calculated to ensure the correct dates are being used. Chad Wick, Director, Financial Aid will conduct the initial calculating of R2T4 on a weekly basis. Brandon Rhone, Systems Administrator, will review all calculations prior to processing them in Colleague.

Corrective Action Plan

FINDING 2025-004 Name of Responsible Individual: Chad Wick, Director of Financial Aid, and Brandon Rhone, Systems Administrator Corrective Action: We will implement a second check process after R2T4 has been calculated to ensure the correct dates are being used. Chad Wick, Director, Financial Aid will conduct the initial calculating of R2T4 on a weekly basis. Brandon Rhone, Systems Administrator, will review all calculations prior to processing them in Colleague. Anticipated Completion Date: March 31, 2026

Categories

Student Financial Aid Special Tests & Provisions

Other Findings in this Audit

  • 1204830 2025-001
    Material Weakness Repeat
  • 1204831 2025-002
    Material Weakness Repeat
  • 1204832 2025-002
    Material Weakness Repeat
  • 1204833 2025-002
    Material Weakness Repeat
  • 1204834 2025-002
    Material Weakness Repeat
  • 1204835 2025-003
    Material Weakness Repeat
  • 1204836 2025-004
    Material Weakness Repeat
  • 1204837 2025-004
    Material Weakness Repeat
  • 1204839 2025-005
    Material Weakness Repeat
  • 1204840 2025-005
    Material Weakness Repeat
  • 1204841 2025-005
    Material Weakness Repeat
  • 1204842 2025-005
    Material Weakness Repeat
  • 1204843 2025-006
    Material Weakness Repeat
  • 1204844 2025-007
    Material Weakness Repeat
  • 1204845 2025-007
    Material Weakness Repeat
  • 1204846 2025-007
    Material Weakness Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 FEDERAL DIRECT STUDENT LOANS $27.78M
84.063 FEDERAL PELL GRANT PROGRAM $7.07M
84.007 FEDERAL SUPPLEMENTAL EDUCATIONAL OPPORTUNITY GRANTS $299,662
84.033 FEDERAL WORK-STUDY PROGRAM $276,090
47.083 INTEGRATIVE ACTIVITIES $149,882