Auditor General
Thomas H. McTavish, C.P.A.
Auditor General
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Auditor General Thomas H. McTavish, C.P.A. Auditor General |
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| INTRODUCTION | This compliance audit covers the Michigan Higher Education Assistance Authority administration of private colleges' competitive scholarship and tuition grant programs for the fall 1994 academic period, adult part-time grant and Michigan work-study programs for the 1993-94 academic period, and degree reimbursements for degrees conferred during fiscal year 1993-94. |
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| AUDIT PURPOSE | This audit was conducted as part of the constitutional responsibility of the Office of the Auditor General and was required by Act 312, P.A. 1994, the annual appropriations act for State institutions of higher education and certain State purposes related to education. |
| BACKGROUND | The Michigan Higher Education Assistance Authority is responsible for administering
private college competitive scholarships, tuition grants, adult part-time grants,
Michigan work-study awards, and degree reimbursements. For the 1994-95 academic
period, the Legislature appropriated $29,769,095 for competitive scholarships and
$51,981,284 for tuition grants. For the 1993-94 academic period, it appropriated
$2,256,946 for adult part-time grants and $6,231,870 for Michigan work-study awards.
For fiscal year 1994-95, the Legislature also appropriated $5,397,659 for general
and allied health degrees, including nursing, and $4,045,710 for dental degrees
conferred during fiscal year 1993-94. Executive Order 1995-3 transferred the Authority from the Department of Education to the Department of Treasury, effective April 8, 1995. The Authority retained its statutory authority, powers, duties, and responsibilities; however, administrative functions, such as budgeting, procurement, and related management functions, are under the direction and supervision of the State Treasurer. |
| AUDIT OBJECTIVES AND CONCLUSIONS | Audit Objective: To determine that students at private colleges
receiving competitive scholarships, tuition grants, adult part-time grants, and
Michigan work-study awards met eligibility requirements stated in the enabling legislation
and the appropriations act. Conclusion: In general, students at private colleges receiving competitive scholarships, tuition grants, adult part-time grants, and Michigan work-study awards met eligibility requirements. However, we noted 58 instances in which students were overawarded, students did not meet eligibility requirements, or the awards were not posted to the students' accounts (Findings 1, 2, and 3). Audit Objective: To determine that the private colleges appropriately accounted for adult part-time grant and Michigan work-study funds. Conclusion: The private colleges appropriately accounted for adult part-time grant and Michigan work-study funds. Audit Objective: To determine that the private colleges requested reimbursement for only eligible degrees earned by Michigan residents. Conclusion: In general, the private colleges requested reimbursement for only eligible degrees earned by Michigan residents. However, we noted that 18 ineligible degrees were reimbursed (Finding 4). |
| AUDIT SCOPE | Our audit scope was to examine, at 18 of the 49 private colleges, selected records
supporting the competitive scholarships and tuition grants awarded for the fall
1994 academic period, adult part-time grants and Michigan work-study funds awarded
to students attending private colleges in Michigan during the 1993-94 academic period,
and degrees conferred during fiscal year 1993-94 and submitted for reimbursement
in fiscal year 1994-95. Our audit was conducted in accordance with Government Auditing
Standards issued by the Comptroller General of the United States and, accordingly,
included such tests of the records and such other auditing procedures as we considered
necessary in the circumstances. The private colleges included in our audit were: Albion College Baker College - East Michigan Baker College - Owosso Center for Humanistic Studies Cleary College Cranbrook Academy of Art Great Lakes Christian College Great Lakes Junior College Jordan College Kalamazoo College Lubavitch Institute of Advanced Studies Madonna University Michigan Christian College Reformed Bible College Sacred Heart Major Seminary Siena Heights College Spring Arbor College William Tyndale College |
| AGENCY RESPONSES AND PRIOR AUDIT FOLLOW-UP | Our report contains 4 findings and 4 corresponding recommendations. The Authority
agreed with our findings and recommendations. In response to our prior audit, the Authority, in conjunction with the private colleges, resolved all reported exceptions. |
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