Finding 1081291 (2024-002)

Significant Deficiency
Requirement
E
Questioned Costs
$1
Year
2024
Accepted
2024-11-07
Audit: 327576
Organization: Art Academy of Cincinnati (OH)

AI Summary

  • Core Issue: Two students received aid exceeding their cost of attendance by a total of $3,240.
  • Impacted Requirements: Aid must not exceed the student's financial need or cost of attendance as per federal guidelines.
  • Recommended Follow-Up: Review and improve controls to ensure all financial aid is accurately included in calculations to avoid over-awarding.

Finding Text

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.

Categories

Questioned Costs Student Financial Aid Eligibility Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 504849 2024-002
    Significant Deficiency
  • 504850 2024-003
    Significant Deficiency
  • 504851 2024-002
    Significant Deficiency
  • 1081292 2024-003
    Significant Deficiency
  • 1081293 2024-002
    Significant Deficiency

Programs in Audit

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