Greenfield Community College-Student Financial Assistance Programs

This is a follow-up audit of Greenfield Community College’s federal student financial aid programs for July 1, 2010 through June 30, 2011.

“In accordance with Chapter 11, Section 12, of the Massachusetts General Laws, the Office of the State Auditor conducted a follow-up audit of the issues contained in our prior audit report (No. 2011-0194-16S) and in the Single Audit of the Commonwealth of Massachusetts, of GCC’s Federal Financial Student Assistance (SFA) programs funded through the United States Department of Education (ED) for the period July 1, 2010 through June 30, 2011.”

The Auditor checked whether the college corrected problems found in an earlier audit.

“The purpose of our audit was to determine if GCC had taken corrective action and made improvements on the audit results identified in the prior audit report (2011-0194-16S).”

Student loan records need to be accurate and timely because they affect federal student aid oversight and loan status tracking.

“SFA regulations governing Title IV Student Assistance programs require institutions, lenders, guaranty agencies, and the Direct Loan Servicer to monitor and update the enrollment status of all students who receive federal student loans.”

If you are a student or taxpayer, the report shows whether the college is handling federal student aid rules properly, including work-study pay, loan notices, and enrollment reporting.

“Our follow-up audit of GCC’s procedures for corrective action and improvements in the areas identified in our prior audit report were to determine whether:”

The college made real progress, but the Auditor still found problems with enrollment status reporting and the internal control plan.

“However, GCC has not fully resolved issues regarding the reporting of student status changes and improvements made to its Internal Control Plan.”

The Auditor recommended that GCC report enrollment changes more often, monitor those reports, and update its internal control policies and procedures.

“GCC should also increase the frequency of its transmission to the NSC once every 30 days.”

In a sample of 25 students, GCC was late reporting status changes for 13 students and did not report changes at all for six others, which shows the remaining problem was not just paperwork.

“We found in our sample of 25 students that, contrary to federal regulations, GCC did not notify the NSLDS in a timely manner of student status changes for 13 students and did not notify the NSLDS at all of student status changes for another six students.”

NSLDS is the federal student loan database; NSC is the contractor GCC uses to send enrollment changes; ICP means the college’s internal control plan, which is its written system for managing risks and procedures.

“GCC utilizes the NSC to facilitate its responsibility to notify NSLDS of changes in the enrollment status of its students.”