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 CFR 668.14(22)(1) An institution will not provide any commission, bonus, or other incentive payment based in any part, directly or indirectly, upon success in securing enrollments or the aware of financial aid, to any person or entity who is engaged in any student recruitment or admission activity, or in making decisions regarding the award of title IV, HEA program funds. Condition: The Vice President of recruitment was paid a performance bonus of $9,000 based on completing a defense which included his recruitment activities for the year. Cause: The Academy gave all executive positions a bonus during the year but required them to complete a defense based on their current year accomplishments. Effect: The Academy paid a $9,000 bonus based on securing enrollments. Questioned Costs: $9,000 Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their bonus process and consider awarding blanket bonuses not based on performance. Views of Responsible Officials: For the executive bonuses, the Academy will award a blanket bonus based on a review from the executives’ team members and manager, which provides feedback on overall leadership and communication skills associated with the teams being managed by the Academy executives. The review will not include any data regarding attaining certain metric related to recruitment and attaining any financial aid goals.