Finding 599158 (2022-002)

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

AI Summary

  • Core Issue: Internal controls over Federal awards were not properly documented or performed due to personnel changes in the financial aid office.
  • Impacted Requirements: Compliance with Federal statutes and regulations regarding eligibility and verification testing was not ensured.
  • Recommended Follow-Up: The Academy should review and formally document internal controls to maintain compliance, including a checklist for eligibility and verification with sign-off from the Director of Financial Aid.

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 the Uniform Guidance Title 2 Subtitle A Chapter II Part 200 Subpart D Subsection 200.303, a non-Federal entity must establish and maintain effective internal control over the Federal award that provides reasonable assurance that the non-Federal entity is managing the Federal award in compliance with Federal statutes, regulations, and the terms and conditions of the Federal award. These internal controls should be in compliance with guidance in ?Standards for Internal Control in the Federal Government? issued by the Comptroller General of the United States of the ?Internal Control Integrated Framework?, issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) Condition: During testing of compliance requirements such as eligibility and verification testing, there was not documentation of a level of review to ensure the requirements were met and accurate. Cause: There was a transition of personnel in the financial aid office in the current year resulting in the controls no longer being performed or documented. Effect: When internal controls are no longer being performed, this could result in compliance requirements not being met or errors being made. Questioned Costs: None Context: This is consistent across the populations tested. Repeat Finding: This is not a repeat finding. Recommendation: We recommend the Academy review their internal controls to ensure compliance with Federal statutes and regulations and for these internal controls to be formally documented. Views of Responsible Officials: The Academy is in agreement with the finding. The Academy?s Financial Aid Counselor will complete a checklist for eligibility and verification and the Director of Financial Aid will provide documented sign off once the checklist is reviewed for completeness and accuracy.

Categories

Student Financial Aid Matching / Level of Effort / Earmarking Eligibility

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
  • 599157 2022-001
    Material Weakness
  • 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