DoE ranks MSUM in financially responsible category
A recent list of more than 500 colleges and universities on a Department of Education Heightened Cash Monitoring list includes every MnSCU institution regardless of their actual financial standing. The inclusion of all MnSCU institutions stems from Minnesota Management and Budget missing a deadline for submitting its audit of federal aid programs.
The list was the focus of a Valley News Live story Tuesday, Money Problems At Area Colleges, which reported, “The 14-page list shows 43 schools from Minnesota as having financial issues or late or missing audits. That includes all 31 campuses in the Mn-SCU system, most notably MSUM.”
The report is correct that MSUM is on the list, but could mislead by associating MSUM with a financial status it does not have, rather than because of the statewide reporting issue.
One way the Department of Education measures the financial health of universities is through its Composite Financial Index scores. Rankings below 1 are categorized as not financially responsible, rankings less than 1.5 but greater or equal to 1.0 are categorized as financially responsible but requiring additional oversight, and rankings above 1.5 are categorized as financially responsible. MSUM’s ranking is 1.75.
Valley News Live News Director Ike Walker said he stands by their story and would not clarify or remove the story from their website.