Finding 1204842 (2025-005)

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

AI Summary

  • Core Issue: A student's immigration status was not confirmed before disbursing federal aid, violating eligibility requirements.
  • Impacted Requirements: Compliance with 34 CFR 668.133(a)(1)(i) and § 668.33(a)(2) regarding documentation and secondary confirmation.
  • Recommended Follow-Up: Improve internal controls and procedures to ensure proper assessment of eligibility for Title IV aid.

Finding Text

FINDING 2025-005 Federal Program Information: Federal Supplemental Educational Opportunity Grants (ALN: 84.007), Federal Work-Study Program (ALN: 84.033), Federal Pell Grant Program (ALN: 84.063), Federal Direct Student Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): E. Eligibility – In accordance with 34 CFR 668.133(a)(1)(i), an institution shall require the student to produce the documentation required under the citizenship and residency requirements at § 668.33(a)(2) and request the U.S. Department of Homeland Security to perform secondary confirmation for a student claiming eligibility under § 668.33(a)(2), in accordance with the procedures set forth in § 668.135, if the institution receives an output document indicating that the student must provide the institution with evidence of the student’s immigration status required under § 668.33(a)(2). Condition: During our testing, we identified a student whose immigration status was not confirmed prior to the disbursement of aid. Cause: Administrative oversight and insufficient internal control. Effect: The University is not in compliance with aid awarding criteria under the eligibility requirements. Questioned Costs: Below reportable threshold. Context: For 1 of 40 students tested, the University did not appropriately assess the student’s eligibility prior to disbursing Title IV awards. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its procedures and internal controls to ensure that Title IV aid is properly awarded. Views of Responsible Officials and Planned Corrective Actions: We have implemented a new Quality Assurance Measure for Auditing all students with a C-Flag. The process begins with the FA advisor team. They are responsible for ensuring all documents have been received and all steps have been completed to clear the C-Flag. In Colleague the advisor will then mark the file is ready for audit. Chad Wick, Director, Financial aid or Brandon Rhone, Systems Administrator, will review all documents and steps needed to clear C-Flag and then update the communication code to audited and make any adjustments if needed to the FAFSA.

Corrective Action Plan

FINDING 2025-005 Name of Responsible Individual: Chad Wick, Director of Financial Aid Corrective Action: We have implemented a new Quality Assurance Measure for Auditing all students with a C-Flag. The process begins with the FA advisor team. They are responsible for ensuring all documents have been received and all steps have been completed to clear the C-Flag. In Colleague the advisor will then mark the file is ready for audit. Chad Wick, Director, Financial aid or Brandon Rhone, Systems Administrator, will review all documents and steps needed to clear C-Flag and then update the communication code to audited and make any adjustments if needed to the FAFSA. Anticipated Completion Date: Already completed

Categories

Student Financial Aid Internal Control / Segregation of Duties Eligibility

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
  • 1204838 2025-004
    Material Weakness Repeat
  • 1204839 2025-005
    Material Weakness Repeat
  • 1204840 2025-005
    Material Weakness Repeat
  • 1204841 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