Finding 1204843 (2025-006)

Material Weakness Repeat Finding
Requirement
L
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 report key items in student origination records to the Common Origination and Disbursement System (COD).
  • Impacted Requirements: Non-compliance with federal regulations (34 CFR 690.83) regarding financial reporting for the Federal Direct Student Loan Program.
  • Recommended Follow-Up: Enhance internal controls and procedures for COD reporting to ensure accurate data submission and prevent future compliance issues.

Finding Text

FINDING 2025-006 Federal Program Information: Federal Direct Student Loan Program (ALN: 84.268) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting – Financial Reporting – Federal regulations, 34 CFR 690.83, require the University to submit origination records for students to the Common Origination and Disbursement System (“COD”). Items considered key in student origination records, if applicable, are: award amount, enrollment date, verification status code (when the applicate is selected for verification), transaction number, cost of attendance, and the “Academic Start Date” and “Academic End Date”. Condition: For certain disbursements identified through our testing, errors were identified in key items reported to the COD in student origination records. Cause: Administrative oversight and insufficient control. Effect: The University was not in compliance with COD reporting requirements. Questioned Costs: None. Context: For 6 of 40 origination records tested, the academic end date was not accurately reported. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its procedures and internal controls over COD reporting to ensure origination record data is accurately reported. Views of Responsible Officials and Planned Corrective Actions: To resolve the finding of loan period academic end dates being inaccurately reported, we now utilize system forms that allow us to identify and batch-correct any student record with incorrect dates. This process enhances data accuracy, ensures proper reporting, prevents COD rejects and reduces the risk of future compliance issues.

Corrective Action Plan

FINDING 2025-006 Name of Responsible Individual: Brandon Rhone, Systems Administrator Corrective Action: To resolve the finding of loan period academic end dates being inaccurately reported, we now utilize system forms that allow us to identify and batch-correct any student record with incorrect dates. This process enhances data accuracy, ensures proper reporting, prevents COD rejects and reduces the risk of future compliance issues. Anticipated Completion Date: Already completed

Categories

Internal Control / Segregation of Duties Period of Performance Reporting Matching / Level of Effort / Earmarking

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
  • 1204842 2025-005
    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