Massasoit Community College-Student Financial Assistance Programs

This is a follow-up audit of Massasoit 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 has conducted a follow-up audit of the issues contained in our prior audit report (No. 2011-0197-7S) and in the Single Audit of the Commonwealth of Massachusetts, of MCC’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.”

The audit was done to see whether the college corrected problems found in an earlier audit.

“The purpose of our audit was to determine if MCC had taken corrective action and made improvements on the audit results identified in the prior audit report (2011-0197-7S).”

These controls matter because they help make sure federal student aid money is handled correctly and student enrollment changes are reported on time.

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

If you are a student, borrower, taxpayer, or community member, this means the auditor found improvements in how the college tracks aid, withdrawals, and federal cash handling.

“Our sample of 30 students disclosed that their enrollment status was reported in a timely manner.”

The auditor concluded that Massasoit had taken corrective action and put adequate controls in place for the areas reviewed.

“We concluded for the period July 1, 2010, through June 30, 2011, MCC has taken corrective action and implemented adequate internal controls regarding (a) the return of Title IV funds, administered in compliance with federal requirements; (b) the reporting of student status changes on a timely and accurate basis; (c) federal cash management procedures; and (d) the improvement and updating of its ICP.”

The report does not list new recommendations; it says the prior audit issues were resolved through updated procedures, monthly reviews, and an updated internal control plan.

“The Business and Financial Aid Offices meet monthly to discuss and resolve any adjustments identified during the reconciliation of disbursed funds to students and GAPS drawdowns.”

This is significant because the earlier weaknesses involved federal student aid, student status reporting, cash management, and the college’s basic control plan, and the follow-up found those areas improved.

“Our follow-up audit disclosed that MCC has included a high-level summarization of its internal controls within its ICP to reflect the recently updated OSC guidelines, changes in top key administrative positions, and the recent re-alignment and turnover in personnel.”

Title IV funds means federal student aid money. NSLDS is the federal student loan data system. GAPS is the payment system used to draw federal aid funds. ICP means the college’s internal control plan.

“Included in the Handbook are procedures regarding the drawing down of SFA funds using the Grants Administration and Payments System (GAPS), as well as the reconciliation of SFA funds to MCC’s accounting and banking records, as a key component of internal control in the SFA program.”