Audit of the Department of Higher Education

This is a state performance audit of the Massachusetts Department of Higher Education covering selected activities from July 1, 2014 through June 30, 2016.

“This report details the audit objectives, scope, methodology, findings, and recommendations for the audit period, July 1, 2014 through June 30, 2016.”

Auditors checked whether the department measured the success of foster-child aid programs and the No Interest Loan Program, and whether it handled related accounting and controls properly.

“In this audit, we determined whether DHE had a system in place to measure the effectiveness and success of the Foster Child Grant Program, the Foster Child Tuition Waiver and Fee Assistance Program, and the No Interest Loan (NIL) Program.”

If the department does not track outcomes, it cannot tell whether these programs are helping students finish school or whether changes are needed.

“Without performing these important administrative activities, DHE lacks the ability to assess the impact of these programs or the extent to which they achieve their goals and desired outcomes and to identify the extent of any problems or barriers to success in the programs so they can be addressed in a timely manner.”

These programs involve public money used for student financial aid, so citizens have a stake in whether the funds are tracked accurately and used effectively.

“DHE received state appropriations of $147,927,686 in fiscal year 2015 and $143,016,099 in fiscal year 2016.”

The audit found three main problems: weak program performance tracking, financial management errors, and an outdated internal control plan.

“Below is a summary of our findings and recommendations, with links to each page listed.”

The auditor recommended that DHE define success measures, improve tracking, correct financial accounting issues, and update its internal control plan.

“DHE should develop a complete and updated ICP based on a current department-wide risk assessment that includes all aspects of its business activities.”

The audit says the public and Legislature need clearer information about whether tax-funded programs are achieving their intended results.

“This information would not only help DHE effect proper administration of the programs in question, but also provide a higher level of transparency to both the Legislature and the public as to what impact, if any, the expenditure of tax dollars on the programs’ activities has on achieving desired outcomes.”

The No Interest Loan Program is a state student loan program that charges no interest and is repaid after a student leaves school or graduates.

“Students have 10 years (commencing within six months of graduation or termination of studies) to repay the loans.”