Massasoit Community College

This is a follow-up audit of Massasoit Community College’s federal student financial aid programs for July 1, 2009 through June 30, 2010.

“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. 2010-0197-16S) and in the Single Audit of the Commonwealth of Massachusetts, and of MCC’s Federal Student Financial Assistance programs funded through the United States Department of Education (ED) for the period July 1, 2009 through June 30, 2010.”

The auditor checked whether Massasoit had fixed problems found in an earlier audit and whether its federal student-aid work followed required rules.

“Our follow-up audit of MCC’s procedures for corrective action and improvements in the areas identified in our prior audit report were as follows:”

These rules matter because mistakes in student-aid records can affect loan deferments, repayment timing, and federal interest payments.

“Enrollment reporting is critical for the effective administration of Title IV loans because a student’s enrollment status determines deferment eligibility, grace periods, and repayment schedules, as well as the government’s payment of interest subsidies.”

If you are a student or taxpayer, the practical issue is whether federal student-aid money and loan records are handled accurately and on time.

“Enrollment reporting is the primary means of verifying students’ loan privileges and the federal government’s financial obligations.”

The college improved how it checks students’ academic progress for aid, but other financial-aid controls still needed work.

“Our follow-up audit determined MCC has taken corrective action to address and to improve its procedures of reviewing SAP.”

Massasoit said it was updating controls, changing refund procedures, improving reporting schedules, and holding monthly meetings to resolve cash-management issues.

“The Financial Aid Office and the Business Office will meet monthly to resolve reconciling items in a timely manner to ensure effective monitoring of SFA funds.”

The report’s findings also fed into the statewide Single Audit, so this was not just an internal college paperwork issue.

“The audit results contained in this report are also reported in Fiscal Year 2010 Single Audit of the Commonwealth of Massachusetts OMB Circular A-133, as mentioned above.”

“Title IV” refers to federal student-aid money; “GAPS” is the payment system used to draw down those funds; “NSLDS” is the federal student-loan data system that needs updated enrollment information.

“The GAPS system is used to drawdown available SFA program funds, using an authorized current funding level, as determined by the Common Origination and Disbursement (COD) system, which processes SFA disbursements.”