EIN: 340714334
UEI: CMKAPYKM9XE1
Audited by: Maloney + Novotny LLC
Oversight agency: 84 [Department of Education]
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Data as of August 28, 2026
Management decision deadline — for entities that funded this organization
The FAC accepted this audit on January 30, 2026. Under 2 CFR 200.521(d), a pass-through entity that provided federal funds to this organization for this audit period must issue a management decision on these findings by July 30, 2026 (31 days ago).
What is a management decision? →FAC accepted this audit on January 23, 2025 — management decision was due July 23, 2025.
The College's internal controls surrounding the disbursement of Federal Direct Student Loans to students were not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, one student's aggregate unpaid principal amount of all Direct Subsidized Loans exceeded the $23,000 loan limit. Effect: Cleveland Institute of Art did not meet the requirement of ensuring that the student's aggregate borrowing of Direct Subsidized Loans was within the borrowing limitations established per CFR 685.023 Loan Limits. Cause: The overpayment identified is due to a transfer student's Direct Subsidized Loan history not being adequately reviewed. Recommendation: Implement a system of internal controls to closely monitor the awarding of Direct Subsidized Loans to transfer students and fourth year students whose aggregate borrowings are close to limit. Management Response: Management acknowledges that there was an error in the amount of Direct Subsidized Loan awarded to the student. The College reviewed all aggregate Direct Subsidized Loan awards for 2023-2024 and noted this was an isolated incident. The College is also strengthening its internal controls around monitoring ISIR comment codes 255, 256, 258, 260 and 261 on a continual basis during packaging season to look for any potential over awards and to pay close attention to transfer students and fourth year student loan limits, and to monitor subsequent ISIR transactions for NSLDS post-screenings.
Show full finding ▾Hide full finding ▴Program: Federal Direct Student Loans CFDA 84.268 Criteria: Per 34 Code of Federal Regulations ("CFR") 685.023 Loan Limits, the aggregate unpaid principal amount of all Direct Subsidized Loans made to a student may not exceed $23,000 for a student who has not successfully completed a program of study at the undergraduate level. Condition: The College's internal controls surrounding the disbursement of Federal Direct Student Loans to students were not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No Questioned Cost: None Context: Out of the 40 students tested, one student's aggregate unpaid principal amount of all Direct Subsidized Loans exceeded the $23,000 loan limit. Effect: Cleveland Institute of Art did not meet the requirement of ensuring that the student's aggregate borrowing of Direct Subsidized Loans was within the borrowing limitations established per CFR 685.023 Loan Limits. Cause: The overpayment identified is due to a transfer student's Direct Subsidized Loan history not being adequately reviewed. Recommendation: Implement a system of internal controls to closely monitor the awarding of Direct Subsidized Loans to transfer students and fourth year students whose aggregate borrowings are close to limit. Management Response: Management acknowledges that there was an error in the amount of Direct Subsidized Loan awarded to the student. The College reviewed all aggregate Direct Subsidized Loan awards for 2023-2024 and noted this was an isolated incident. The College is also strengthening its internal controls around monitoring ISIR comment codes 255, 256, 258, 260 and 261 on a continual basis during packaging season to look for any potential over awards and to pay close attention to transfer students and fourth year student loan limits, and to monitor subsequent ISIR transactions for NSLDS post-screenings.
Management acknowledges that there was an error with one over award of subsidized loan on a student. Student was given $448 (gross) over the aggregate subsidized limit. The overage was sent back to the Direct lender. Since the student graduated, the $448 was covered by a grant. A survey of all students was completed and no other students were discovered to have been over their aggregate subsidized limit. • A student’s aggregate subsidized amount on NSLDS from his FAFSA record was listed at $17,948, allowing only $5,052 in remaining to reach the $23,000 aggregate limit on subsidized loan. Student was given $5,500 when it should have been $5,052. The $448 should have been given as unsubsidized loan. Student had previous loans from another school. (Powerfaids will catch this error if all of the historic loans were processed within our database.) • The student ISIR record did have Comment code 258: “Based upon data provided by the National Student Loan Data System (NSLDS) and your grade level, we have determined that you may have received a total amount of undergraduate student loans that is close to or equal to the loan limits established for the federal loan programs. Therefore, your eligibility for additional student loans may be limited.“ • The Federal processor usually sends a post-screening after federal aid is disbursed with warnings of limits: 255, 256, 258. 260 ad 261. This would cause a C-code on the student record. We did not receive a subsequent ISIR record on said student. Corrective Action Plan: Include in the Quality Assurance rules one for the ISIR codes associated with NSLDS overawarding of loans whether it be annual limits or aggregate limits. We will monitor these codes regularly during packaging season and subsequent to loan disbursing.
FAC accepted this audit on January 8, 2024 — management decision was due July 8, 2024.
The College's internal controls surrounding the awarding and disbursement of Pell Grants to students were not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No. Questioned Cost: None. Context: Out of the 40 students tested, one student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,447 for fall and spring, respectively; however, only received $2,585 each semester causing a total underpayment of $1,724. Effect: Cleveland Institute of Art did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment indentified is due to the Powerfaids and SIS program integration that caused the student's actual credit hours to not correctly update into the Powerfaids system. Recommendation: A system of internal controls surrounding the awarding of Pell Grants in the correct amount should be put in place and take place prior to the disbursement of funds to the student. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Cleveland Institute of Art reviewed all Pell awards for 2022-2023 and discovered a total of five occurrences of a Pell Grant being under awarded totaling $6,588. Students impacted will be credited for any error in their initial award. The College is also reconfiguiring its systems to ensure that this error does not occur in the future.
Show full finding ▾Hide full finding ▴Program: Federal Pell Grant Program CFDA 84.063. Criteria: Per 34 Code of Federal Regulations ("CFR") 690.62 Calculation of a Federal Pell Grant, the amount of a student's Pell Grant for an academic year is based upon the payment and disbursement schedules published by the Secretary for each award year. The Uniform Guidance Compliance Supplement states that the Department of Education provides institutions Payment Disbursement Schedules for determining Pell awards each year. The Payment or Disbursement Schedule provides the maximum annual amount a student would receive for a full academic year for a given enrollment status, Expected Family Contribution ("EFC") and Cost of Attendance ("COA"). The Payment Schedule is used to determine the annual award for full-time, three-quarter time, half-time and less-than-half-time students. Condition: The College's internal controls surrounding the awarding and disbursement of Pell Grants to students were not adequate to maintain compliance with Title IV regulations. Repeat Finding from Prior Year: No. Questioned Cost: None. Context: Out of the 40 students tested, one student was not properly awarded or disbursed Pell Grant aid based on the classes in which they began attendance. The student should have received $3,447 for fall and spring, respectively; however, only received $2,585 each semester causing a total underpayment of $1,724. Effect: Cleveland Institute of Art did not meet the requirement of ensuring that proper Pell Grant amounts are awarded and disbursed to students. Cause: The underpayment indentified is due to the Powerfaids and SIS program integration that caused the student's actual credit hours to not correctly update into the Powerfaids system. Recommendation: A system of internal controls surrounding the awarding of Pell Grants in the correct amount should be put in place and take place prior to the disbursement of funds to the student. Management Response: Management acknowledges that there was an error in the amount of Pell awarded to the student. Cleveland Institute of Art reviewed all Pell awards for 2022-2023 and discovered a total of five occurrences of a Pell Grant being under awarded totaling $6,588. Students impacted will be credited for any error in their initial award. The College is also reconfiguiring its systems to ensure that this error does not occur in the future.
Management acknowledges that there was an error in the amount of Pell awarded to the student. Cleveland Institute of Art is in the process of calculating the number of students affected by the issue and reconciling any differences. The College is also reconfiguring the systems to ensure that this issue does not continue. The financial aid office will import on a regular basis the credit hour update/create student update into Powerfaids using the data integration from J1 table to load credit hours onto the student record until the Pell recalculation/census date. The financial aid office will continue to share with the Registrar’s office the Financial Aid credit hours update report that shows hours not contributing to the program so they can correct the coding on specific coursework into the appropriate “trees.” Powerfaids only imports hours contributing to the program. At the beginning of the semester, and prior to disbursing aid, the financial aid office will look for enrollment discrepancies and reconcile hours in their system with a registration report from the Registrar’s office. On the census date, which is defined as day 15 of the term, the financial aid office will lock down the enrollment hours on the student record after reconciling the hours on the student record with the hours on the Registrar’s census report.
FAC accepted this audit on January 10, 2023 — management decision was due July 10, 2023.
FAC accepted this audit on March 28, 2022 — management decision was due September 28, 2022.
FAC accepted this audit on June 8, 2021 — management decision was due December 8, 2021.
FAC accepted this audit on January 14, 2020 — management decision was due July 14, 2020.
FAC accepted this audit on December 19, 2018 — management decision was due June 19, 2019.
FAC accepted this audit on January 28, 2018 — management decision was due July 28, 2018.
FAC accepted this audit on January 9, 2017 — management decision was due July 9, 2017.
Data source: This information comes from the Federal Audit Clearinghouse, the official repository of Single Audit data. All data is public domain. Verify this organization's audit history at fac.gov.
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