Finding 35003 (2022-006)

-
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-03-20
Audit: 36678
Organization: Stevenson University, Inc. (MD)
Auditor: Bdo USA LLP

AI Summary

  • Core Issue: The University failed to accurately report key information in its quarterly reports and did not submit the annual ESF report on time.
  • Impacted Requirements: Compliance with federal reporting requirements for the COVID-19 Education Stabilization Fund, including timely and accurate public disclosures.
  • Recommended Follow-Up: Improve policies and procedures for quarterly reporting to ensure all required information is reported correctly and on schedule.

Finding Text

Program Information: COVID-19 Education Stabilization Fund (?ESF?) ? Student Aid Portion (ALN: 84.425E) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): L. Reporting ? Special Reporting ? Quarterly Public Reporting ? The University is required to publicly post certain information for the Student Aid Portion award on the University?s website in a conspicuous location. Institutions must post certain key line items identified by the ED as critical information directly to their website each calendar quarter, and reports must be updated no later than 10 days after the end of each calendar quarter. Special Reporting ? Annual Reporting ? The ED developed the ESF Data Collection Form that institutions must use to satisfy the annual reporting requirement. The form was required to be submitted to ED via the Annual Report Data Collection System no later than May 6, 2022. Condition: Certain key line items were not correctly reported in the University?s quarterly reports. Additionally, the ESF annual report was not submitted within the required timeframe. Cause: Administrative oversight with respect to quarterly public reporting requirements. Effect or Potential Effect: The University is not in compliance with reporting requirements. Questioned Costs: None. Context: For 2 of 2 quarters selected for testing, certain required key line items for the Student Aid Portion awards reported on the University?s website contained inaccurate information. Additionally, the ESF annual report was not submitted within the required timeframe. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its policies and procedures over quarterly reporting to ensure that all required information is reported accurately, in accordance with federal regulations.

Corrective Action Plan

Name of Responsible Individual: Melanie Mason, Director of Student Financial Aid Corrective Action: In the event that future grant fund reporting is required, the University will develop and implement an electronic process which will validate and provide a reconcilement of student counts and grant award amounts by student. Only information which has been validated will be included in periodic reporting. Anticipated Completion Date: February 28, 2023

Categories

Reporting Internal Control / Segregation of Duties

Other Findings in this Audit

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $25.74M
84.063 Federal Pell Grant Program $4.22M
84.425 Covid-19 - Education Stabilization Fund - Higher Education Emergency Relief Fund Student Portion $3.59M
84.425 Coivd-19 - Education Stabilization Fund - Higher Education Emergency Relief Fund Institutional Portion $3.51M
84.007 Federal Supplemental Educational Opportunity Grants $341,616
84.033 Federal Work-Study Program $184,188
84.425 Covid-19 - Education Stabilization Fund - Governor's Emergency Education Relief Fund $20,930