FAC Explorer

Audit 327576

FY End
2024-05-31
Total Expended
$2.98M
Findings
6
Programs
5
Organization: Art Academy of Cincinnati (OH)
Year: 2024 Accepted: 2024-11-07
Auditor: Dean Dorton Allen Ford

Organization Exclusion Status:

Findings

ID Ref Severity Repeat Requirement
504849 2024-002 Significant Deficiency - E
504850 2024-003 Significant Deficiency - E
504851 2024-002 Significant Deficiency - E
1081291 2024-002 Significant Deficiency - E
1081292 2024-003 Significant Deficiency - E
1081293 2024-002 Significant Deficiency - E

Programs

ALN Program Spent Major Findings
84.268 Federal Direct Student Loans $2.18M Yes 2
84.063 Federal Pell Grant Program $711,999 Yes 1
21.027 Coronavirus State and Local Fiscal Recovery Funds $38,272 - 0
84.033 Federal Work-Study Program $31,638 Yes 0
84.007 Federal Supplemental Educational Opportunity Grants $22,688 Yes 0

Contacts

Name Title Type
RFJ7GBCZUGZ1 Lea Wagner Auditee
5135628779 Stephanie Allgeyer Auditor
No contacts on file

Notes to SEFA

Accounting Policies: The accompanying schedule of expenditures of federal awards (the “Schedule”) includes the federal award activity of Art Academy of Cincinnati under programs of the federal government for the year ended May 31, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of Art Academy of Cincinnati, it is not intended to and does not present the financial position, changes in net assets, or cash flows of Art Academy of Cincinnati. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent adjustments or credits made in the normal course of business to amounts reported as expenditures in prior years. De Minimis Rate Used: N Rate Explanation: Art Academy of Cincinnati has elected not to use the 10 percent de Minimis indirect cost rate allowed under the Uniform Guidance.

Finding Details

Finding 2024-002
Finding 2024-002: Eligibility Federal Program: Federal Direct Student Loans [84.268] and Federal Pell Grant Program [84.063] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, the total amount of need-based aid cannot exceed the student’s financial need and the total amount of all aid cannot exceed the student’s cost of attendance. Condition: During testing of eligibility, 2 out of 40 students were noted as having total aid awarded in excess of cost of attendance. The total amounts in excess combined were $3,240. Cause: When the student’s loans were packaged, all of the students aid was not included in the calculation. Effect: The students received total aid awarded in excess of their cost of attendance. Questioned Costs: $3,240 Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure all financial aid is included in the calculations when packaging students to prevent over-awarding.
Finding 2024-003
Finding 2024-003: Eligibility Federal Program: Federal Direct Student Loans [84.268] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, an institution must determine an undergraduate student’s maximum Direct Subsidized Loan eligibility before originating a Direct Unsubsidized Loan for the student. Condition: During testing of eligibility, 2 out of 40 students were not awarded their maximum subsidized loan amounts they should have been awarded. Cause: The Campus Café software was awarding incorrect Direct Loan amounts to students when batching ISIR reports. Effect: The students did not receive the most advantageous loan options first. Questioned Costs: No questioned costs. Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure students are receiving the most advantageous loan options first as part of the packaging process.
Finding 2024-002
Finding 2024-002: Eligibility Federal Program: Federal Direct Student Loans [84.268] and Federal Pell Grant Program [84.063] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, the total amount of need-based aid cannot exceed the student’s financial need and the total amount of all aid cannot exceed the student’s cost of attendance. Condition: During testing of eligibility, 2 out of 40 students were noted as having total aid awarded in excess of cost of attendance. The total amounts in excess combined were $3,240. Cause: When the student’s loans were packaged, all of the students aid was not included in the calculation. Effect: The students received total aid awarded in excess of their cost of attendance. Questioned Costs: $3,240 Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure all financial aid is included in the calculations when packaging students to prevent over-awarding.
Finding 2024-002
Finding 2024-002: Eligibility Federal Program: Federal Direct Student Loans [84.268] and Federal Pell Grant Program [84.063] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, the total amount of need-based aid cannot exceed the student’s financial need and the total amount of all aid cannot exceed the student’s cost of attendance. Condition: During testing of eligibility, 2 out of 40 students were noted as having total aid awarded in excess of cost of attendance. The total amounts in excess combined were $3,240. Cause: When the student’s loans were packaged, all of the students aid was not included in the calculation. Effect: The students received total aid awarded in excess of their cost of attendance. Questioned Costs: $3,240 Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure all financial aid is included in the calculations when packaging students to prevent over-awarding.
Finding 2024-003
Finding 2024-003: Eligibility Federal Program: Federal Direct Student Loans [84.268] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, an institution must determine an undergraduate student’s maximum Direct Subsidized Loan eligibility before originating a Direct Unsubsidized Loan for the student. Condition: During testing of eligibility, 2 out of 40 students were not awarded their maximum subsidized loan amounts they should have been awarded. Cause: The Campus Café software was awarding incorrect Direct Loan amounts to students when batching ISIR reports. Effect: The students did not receive the most advantageous loan options first. Questioned Costs: No questioned costs. Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure students are receiving the most advantageous loan options first as part of the packaging process.
Finding 2024-002
Finding 2024-002: Eligibility Federal Program: Federal Direct Student Loans [84.268] and Federal Pell Grant Program [84.063] Criteria: Per the 2023-2024 Federal Student Aid Handbook, chapter 3 Packaging Aid, the total amount of need-based aid cannot exceed the student’s financial need and the total amount of all aid cannot exceed the student’s cost of attendance. Condition: During testing of eligibility, 2 out of 40 students were noted as having total aid awarded in excess of cost of attendance. The total amounts in excess combined were $3,240. Cause: When the student’s loans were packaged, all of the students aid was not included in the calculation. Effect: The students received total aid awarded in excess of their cost of attendance. Questioned Costs: $3,240 Context: This is a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their controls to ensure all financial aid is included in the calculations when packaging students to prevent over-awarding.