Finding 22720 (2022-003)

Significant Deficiency
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2023-02-20
Audit: 17960
Organization: Art Academy of Cincinnati (OH)

AI Summary

  • Core Issue: 16 out of 25 students did not receive required notifications about their federal aid for Fall 2021.
  • Impacted Requirements: Institutions must inform students about the amount and type of federal funds they will receive before disbursement, as per 34 CFR 668.165(a)(1).
  • Recommended Follow-Up: Review and document internal controls in the financial aid office to ensure compliance during personnel transitions.

Finding Text

Federal Program: Federal Supplemental Educational Opportunity Grants (FSEOG) [AL #84.007], Federal Work-Study Program [AL #84.033], Federal Pell Grant Program [AL #84.063], and Federal Direct Student Loans [AL #84.268]. Criteria: Per 34 CFR 668.165(a)(1) before an institution disburses title IV, HEA program funds for any award year, the institution must notify a student of the amount of funds that the student or his or her parent can expect to receive under each title IV, HEA program, and how and when those funds will be disbursed. If those funds include Direct Loan program funds, the notice must indicate which funds are from subsidized loans, which are from unsubsidized loans, and which are from PLUS loans. Condition: During testing of disbursements to or on behalf of students, 16 out of the 25 students selected for testing did not receive a written notification from the institution for the Fall of 2021 semester. Cause: There was a transition of personnel in the financial aid office in the current year resulting in the notifications not being sent. Effect: Students did not receive the notification of the amount of funds expected to be received under each title IV, HEA program and how those funds were to be disbursed. Questioned Costs: None Context: This was only identified for the fall of 2021 semester Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their internal controls and document them to ensure compliance during transitional periods of personnel. Views of Responsible Officials: The Academy is in agreement with the finding. Starting the fall of 2022 the Academy?s student information system, Campus Cafe, provides online award letter notification to all students for review and approval and/or decline.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Internal Control / Segregation of Duties

Other Findings in this Audit

  • 22711 2022-001
    Material Weakness
  • 22712 2022-002
    Significant Deficiency
  • 22713 2022-003
    Significant Deficiency
  • 22714 2022-004
    Significant Deficiency Repeat
  • 22715 2022-001
    Material Weakness
  • 22716 2022-002
    Significant Deficiency
  • 22717 2022-003
    Significant Deficiency
  • 22718 2022-001
    Material Weakness
  • 22719 2022-002
    Significant Deficiency
  • 22721 2022-001
    Material Weakness
  • 22722 2022-002
    Significant Deficiency
  • 22723 2022-003
    Significant Deficiency
  • 599153 2022-001
    Material Weakness
  • 599154 2022-002
    Significant Deficiency
  • 599155 2022-003
    Significant Deficiency
  • 599156 2022-004
    Significant Deficiency Repeat
  • 599157 2022-001
    Material Weakness
  • 599158 2022-002
    Significant Deficiency
  • 599159 2022-003
    Significant Deficiency
  • 599160 2022-001
    Material Weakness
  • 599161 2022-002
    Significant Deficiency
  • 599162 2022-003
    Significant Deficiency
  • 599163 2022-001
    Material Weakness
  • 599164 2022-002
    Significant Deficiency
  • 599165 2022-003
    Significant Deficiency

Programs in Audit

ALN Program Name Expenditures
84.268 Federal Direct Student Loans $1.99M
84.063 Federal Pell Grant Program $615,789
84.425 Education Stabilization Fund $75,000
84.033 Federal Work-Study Program $38,047
84.007 Federal Supplemental Educational Opportunity Grants $34,184
21.019 Coronavirus Relief Fund $2,594