Finding 966277 (2023-006)

-
Requirement
N
Questioned Costs
-
Year
2023
Accepted
2024-03-29
Audit: 300714
Organization: Stevenson University, Inc. (MD)
Auditor: Bdo USA PC

AI Summary

  • Core Issue: The University failed to notify some students of their Federal Work-Study (FWS) compensation terms before disbursement.
  • Impacted Requirements: This oversight violates federal regulations requiring prior notification and documentation of work hours.
  • Recommended Follow-Up: Enhance procedures to ensure all students receive proper notification and complete necessary hiring processes before starting work.

Finding Text

Federal Program Information: Federal Work-Study Program (ALN: 84.033) Criteria or Specific Requirement (Including Statutory, Regulatory or Other Citation): N. Special Test and Provisions – Disbursements To or On Behalf of Students – Federal Work Study – Before an institution makes an initial disbursement of FWS compensation to a student for an award period, the institution must notify the student of the amount of funds the student is authorized to earn, and how and when the FWS compensation will be paid (34 CFR 675.16(a)(3)). The institution must also establish and maintain program and fiscal records that include a certification by the student’s supervisor, an official of the institution or off-campus agency, that each student has worked and earned the amount being paid. The certification must include or be supported by, for students paid on an hourly basis, a time record showing the hours each student worked in clock time sequence, or the total hours worked per day (34 CFR 675.19(b)(2)(i)). Condition: For certain students selected for testing, the University was unable to support that students were notified of the terms of their award prior to disbursing FWS compensation. Cause: Administrative oversight with respect to FWS compensation. Effect: Students were not properly notified of the terms and conditions of their FWS compensation in accordance with federal regulations. Questioned Costs: None. Context: For 4 of 13 students selected for testing, the University was unable to provide documentation supporting that students were properly notified of the terms and conditions of their FWS compensation. Identification of Repeat Finding: No similar findings noted in the prior year. Recommendation: We recommend the University enhance its procedures over FWS compensation to ensure that students are properly notified of the terms of their compensation. Views of Responsible Officials and Planned Corrective Actions: In an effort to maximize the utilization of student aid, current student workers were reviewed for FWS eligibility. Those students identified were awarded the FWS funds without being notified though they did indicate they were interested in FWS funds. The Financial Aid Office and Human Resources will collaborate to ensure that work study students are not allowed to start work until they have followed proper hiring procedures within the PeopleAdmin system. The Financial Aid office is also modifying the way this award will be offered in 2024-2025. The Financial Aid office will add this award to the automated process when students are first packaged. At that time, they will need to accept or decline the offer. From acceptance, the student will be prompted to complete a short training video on acquiring a University job. Upon completion of the video the students will be provided an automated link to the PeopleAdmin system where they will have access to the open jobs on campus. The Financial Aid office will receive an automated confirmation from the PeopleAdmin system that all necessary documents and training have been completed. The Financial Aid office will assign an individual to oversee this process.

Categories

Student Financial Aid Special Tests & Provisions Eligibility

Other Findings in this Audit

  • 389821 2023-001
    -
  • 389822 2023-001
    -
  • 389823 2023-002
    Significant Deficiency Repeat
  • 389824 2023-002
    Significant Deficiency Repeat
  • 389825 2023-002
    Significant Deficiency Repeat
  • 389826 2023-002
    Significant Deficiency Repeat
  • 389827 2023-003
    -
  • 389828 2023-003
    -
  • 389829 2023-004
    - Repeat
  • 389830 2023-004
    - Repeat
  • 389831 2023-005
    Significant Deficiency Repeat
  • 389832 2023-005
    Significant Deficiency Repeat
  • 389833 2023-005
    Significant Deficiency Repeat
  • 389834 2023-005
    Significant Deficiency Repeat
  • 389835 2023-006
    -
  • 389836 2023-007
    - Repeat
  • 389837 2023-008
    Significant Deficiency Repeat
  • 389838 2023-008
    Significant Deficiency Repeat
  • 389839 2023-008
    Significant Deficiency Repeat
  • 389840 2023-009
    -
  • 389841 2023-009
    -
  • 966263 2023-001
    -
  • 966264 2023-001
    -
  • 966265 2023-002
    Significant Deficiency Repeat
  • 966266 2023-002
    Significant Deficiency Repeat
  • 966267 2023-002
    Significant Deficiency Repeat
  • 966268 2023-002
    Significant Deficiency Repeat
  • 966269 2023-003
    -
  • 966270 2023-003
    -
  • 966271 2023-004
    - Repeat
  • 966272 2023-004
    - Repeat
  • 966273 2023-005
    Significant Deficiency Repeat
  • 966274 2023-005
    Significant Deficiency Repeat
  • 966275 2023-005
    Significant Deficiency Repeat
  • 966276 2023-005
    Significant Deficiency Repeat
  • 966278 2023-007
    - Repeat
  • 966279 2023-008
    Significant Deficiency Repeat
  • 966280 2023-008
    Significant Deficiency Repeat
  • 966281 2023-008
    Significant Deficiency Repeat
  • 966282 2023-009
    -
  • 966283 2023-009
    -

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $27.50M
84.063 Federal Pell Grant Program $4.49M
84.007 Federal Supplemental Educational Opportunity Grants $301,384
84.033 Federal Work-Study Program $271,413