FAC Explorer

Finding 548667 (2024-007)

- Repeat Finding
Requirement
E
Questioned Costs
-
Year
2024
Accepted
2025-03-31
Audit: 351998
Organization: Stevenson University, Inc. (MD)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to prioritize Federal Pell Grant recipients when awarding FSEOG funds, violating eligibility requirements.
  • Impacted Requirements: Non-compliance with federal aid awarding criteria, specifically for the FSEOG program.
  • Recommended Follow-up: Enhance internal controls and procedures to ensure proper awarding of Title IV aid, focusing on Pell Grant recipient prioritization.

Finding Text

Federal Program Information: Federal Supplemental Educational Opportunity Grants (“FSEOG”) (ALN: 84.007) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): E. Eligibility – Federal Supplemental Educational Opportunity Grant (Assistance Listing 84.007) - The FSEOG program provides grants to eligible undergraduate students who have not previously earned a bachelor’s or first professional degree. Priority is given to Pell Grant recipients who have the lowest expected family contributions. The institution decides the amount of the grant, which can be up to $4,000 but not less than $100, for an academic year (34 CFR 676.10 and 676.20). Condition: The University did not give priority to Federal Pell Grant recipients when awarding and disbursing FSEOG funds. Cause: Administrative oversight. Effect: The University is not in compliance with aid awarding criteria under the eligibility requirements. Questioned Costs: None. Context: The University improperly prioritized disbursing FSEOG funds to 2 students during the year over Federal Pell Grant recipients. Identification of Repeat Finding: This is a repeat of prior year finding 2023-002. 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: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring a new Director of Financial Aid. The University transitioned from a manual awarding process to an automated process after last year’s audit but not in time to change some of the 23-24 awards. In the past FSEOG funds were used to assist students to pay off balances allowing them to register for the next semester. This practice in no longer being followed beginning with the 24-25 academic year. In addition, the Financial Aid office will review all 2024-2025 FSEOG awards to ensure that FSEOG is only awarded to Pell recipients.

Corrective Action Plan

Name of Responsible Individual: Brandon Rhone, Analyst, Financial Aid Systems, and Chad Wick, Director Financial Aid Corrective Action: During the 2024 fiscal year, the Financial Aid office experienced several staffing changes, including hiring of a new Director of Financial Aid. The University transitioned from a manual awarding process to an automated process after last year’s audit but not in time to change some of the 23-24 awards. In the past FSEOG funds were used to assist students to pay off balances allowing them to register for the next semester. This practice in no longer being followed beginning with the 24-25 academic year. In addition, the Financial Aid office will review all 2024-2025 FSEOG awards to ensure that FSEOG is only awarded to Pell recipients. Anticipated Completion Date: March 31, 2025

Categories

Student Financial Aid Eligibility Internal Control / Segregation of Duties

Other Findings in this Audit

  • 548665 2024-002
    Significant Deficiency Repeat
  • 548666 2024-006
    Significant Deficiency Repeat
  • 548668 2024-001
    Significant Deficiency Repeat
  • 548669 2024-002
    Significant Deficiency Repeat
  • 548670 2024-003
    Significant Deficiency
  • 548671 2024-001
    Significant Deficiency Repeat
  • 548672 2024-002
    Significant Deficiency Repeat
  • 548673 2024-005
    Significant Deficiency Repeat
  • 548674 2024-006
    Significant Deficiency Repeat
  • 548675 2024-002
    Significant Deficiency Repeat
  • 548676 2024-004
    Significant Deficiency Repeat
  • 548677 2024-005
    Significant Deficiency Repeat
  • 548678 2024-006
    Significant Deficiency Repeat
  • 1125107 2024-002
    Significant Deficiency Repeat
  • 1125108 2024-006
    Significant Deficiency Repeat
  • 1125109 2024-007
    - Repeat
  • 1125110 2024-001
    Significant Deficiency Repeat
  • 1125111 2024-002
    Significant Deficiency Repeat
  • 1125112 2024-003
    Significant Deficiency
  • 1125113 2024-001
    Significant Deficiency Repeat
  • 1125114 2024-002
    Significant Deficiency Repeat
  • 1125115 2024-005
    Significant Deficiency Repeat
  • 1125116 2024-006
    Significant Deficiency Repeat
  • 1125117 2024-002
    Significant Deficiency Repeat
  • 1125118 2024-004
    Significant Deficiency Repeat
  • 1125119 2024-005
    Significant Deficiency Repeat
  • 1125120 2024-006
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $28.53M
84.063 Federal Pell Grant Program $5.55M
84.007 Federal Supplemental Educational Opportunity Grants $306,787
84.033 Federal Work-Study Program $267,710