Massachusetts Maritime Academy-Student Financial Assistance Programs
May 24, 2012 · Read the full official report (PDF) ↗
Published May 24, 2012 Audit covers July 1, 2010 – June 30, 2011 Under Suzanne M. Bump · 2011–2023
source
“However, our follow-up audit has determined that MMA had not (a) submitted student status changes as required, (b) implemented policies and procedures over its FWS Program, and (c) sufficiently updated its internal control plan to comply with the OSC’s internal control guidelines.”
Read the plain-English breakdown
This is a follow-up audit of Massachusetts Maritime Academy’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 has conducted a follow-up audit of the issues contained in our prior audit report (No. 2011-0182-16S) and in the Single Audit of the Commonwealth of Massachusetts, of MMA’s Federal Student Financial Assistance (SFA) programs funded through the United States Department of Education (ED) for the period July 1, 2010 through June 30, 2011.”
Auditors checked whether the academy had fixed problems found in a prior audit.
“The purpose of our audit was to determine if MMA had taken corrective action and made improvements on the audit results identified in the prior report (2011-0182-7S).”
Accurate student-status reporting matters because it affects federal student loan records for students who graduate, withdraw, or change enrollment status.
“MMA is required to identify and update the loan status of all students, including those who graduate or withdraw, via a periodic Roster Report (formerly a Student Status Confirmation Report).”
If you are a student or taxpayer, this matters because the report is about whether federal student aid money and student loan records were handled correctly.
“SFA regulations governing Title IV SFA programs require institutions, lenders, guaranty agencies, and the loan servicer to monitor and update the enrollment status of all students who receive federal student loans.”
The academy improved some procedures, but auditors still found problems with timely student-status reporting, federal work-study timesheets, and department-level written procedures.
“Our follow-up audit disclosed that MMA has not taken sufficient corrective action to address prior audit issues regarding (a) reporting student status changes on a timely and accurate basis, (b) improvements in Federal Work Study (FWS) internal controls, and (c) improvements and updating of its Internal Control Plan (ICP).”
The auditor recommended that the academy keep improving its reporting, work-study oversight, and written policies and procedures.
“We recommend that MMA continue to develop and enhance its written policies and procedures to support the mission of the MMA as part of the implementation of the ICP.”
This was not just an internal school review; the findings were also part of the statewide Single Audit reporting process.
“The audit results contained in this report are also reported in the Fiscal Year 2011 Single Audit of the Commonwealth of Massachusetts Report OMB Circular A-133 Report, as mentioned above.”
SFA means student financial aid; FWS means federal work-study; NSLDS is the federal student loan data system; NSC is the clearinghouse the academy used to help report enrollment changes; ICP means internal control plan.
“MMA utilizes the National Student Clearinghouse (NSC) to facilitate its responsibility to notify NSLDS of enrollment status changes.”
4 figure(s) pending source verification - not shown
What the Auditor checked
- Complied Were improvements made to MMA’s processing of Disbursement Notification Letters to Federal Direct Loan recipients?
- Partially Were student status changes submitted as required?
- Partially Were improvements made to Federal Work Study Program Internal Controls?
- Partially Were improvements made to MMA’s Internal Control Plan?
What the Auditor found
Why it matters: Student loan records may not accurately reflect whether students withdrew, graduated, or changed enrollment status, increasing the risk that federal student loan status information is incorrect.
Standard: 34 Code of Federal Regulations Section 685.309(b) ( 34 Code of Federal Regulations Section 685.309(b) )
1 recommendation
- MMA should follow its procedures for accurate and timely reporting to NSLDS, notify NSC of student enrollment changes on time, and verify that NSC transmits the information accurately and timely to NSLDS.
Agency response & Auditor reply
Agency: "Additional procedures have been implemented for timely and accurate control verification with NSLDS."
Why it matters: Inadequate timesheet controls create a risk that Federal Work Study payroll funds may be paid for unsupported or improperly documented work.
Standard: 34 CFR 675.19(a) ( 34 CFR 675.19(a); Chapter 647 of the Acts of 1989, An Act Relative to Improving the Internal Controls within State Agencies )
1 recommendation
- MMA should continue improving and monitoring Federal Work Study controls, including supervisor review of timesheets and ensuring students legibly sign timesheets while performing assigned tasks.
Agency response & Auditor reply
Agency: "The MMA Financial Aid Office will continue to review and improve our internal controls with regard to the Federal Work Study Program."
Prior findings revisited
"Our follow-up audit disclosed that MMA has taken corrective action to improve its policies and procedures for issuing disbursement notification letters to its students to be in compliance with Federal Title IV."
"Our follow-up audit disclosed that MMA has not taken sufficient corrective action to address prior audit issues regarding (a) reporting student status changes on a timely and accurate basis, (b) improvements in Federal Work Study (FWS) internal controls, and (c) improvements and updating of its Internal Control Plan (ICP)."