Finding 599157 (2022-001)

Material Weakness
Requirement
L
Questioned Costs
-
Year
2022
Accepted
2023-02-20
Audit: 17960
Organization: Art Academy of Cincinnati (OH)

AI Summary

  • Core Issue: The Academy inaccurately reported total tuition and fees for the 2020-21 award year, with an overreport of $380,731 for undergraduates and an underreport of $28,122 for graduates.
  • Impacted Requirements: The Academy failed to meet the application accuracy standards required for participation in federal campus-based programs.
  • Recommended Follow-Up: Implement a two-person review process for the FISAP preparation, ensuring one individual prepares and another reviews, with formal documentation of the review.

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: For a school to participate in Campus-Based programs it is required to file an application by the deadline date of October 1, 2021 as established by the Federal Register Notice ?Campus-Based Deadline Dates Notice for the 2021-22 Award Year? Condition: Under Part II. Application to Participate for Award Year July 1, 2022 through June 30, 2023 Section E. Assessments and Expenditures, the undergraduate total tuition and fees for the award year July 1, 2020 to June 30, 2021 was overreported by $380,731. Graduate total tuition and fees for the award year July 1, 2020 to June 30, 2021 was underreported by $28,122. Cause: The application was completed and submitted by the Director of Financial Aid. However, there was no level of review to ensure the application was completed accurately and therefore clerical errors could occur. Effect: The Academy incorrectly reported total tuition and fees for the award year July 1, 2020 to June 30, 2021. Questioned Costs: None Context: This is not a systemic problem. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy have one individual prepare the FISAP while someone else reviews it. This review should be formally documented. Views of Responsible Officials: The Academy is in agreement with the finding. The Academy?s Director of Financial Aid will prepare the FISAP and the VP of Administration and Finance will review and provide official sign off on the FISAP before submission.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

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
  • 22720 2022-003
    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
  • 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