Finding 504849 (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.

Corrective Action Plan

The Financial Aid (FA) department is verifying the cost of attendance (COA) by crossreferencing the student's enrollment status, residency status, and any special circumstances before any financial aid is disbursed. FA is also monitoring changes in a student's enrollment status, housing arrangements, awarding or other factors that could affect their COA and running an "Over Award Report" from Campus Cafe throughout the semester. Completion Date: This process has been implemented with the start of the Fall 2024 semester.

Categories

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

Other Findings in this Audit

  • 504850 2024-003
    Significant Deficiency
  • 504851 2024-002
    Significant Deficiency
  • 1081291 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