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Missouri State Auditor's Office - 2002-46-
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Office of the State Auditor of Missouri
Claire McCaskill

 

June 14, 2002

Report No. 2002-46

The following problems were discovered as a result of an audit conducted by our office of the Department of Elementary and Secondary Education, Teacher Scholarship, Loan, and Tuition Reimbursement Programs.


The Department of Elementary and Secondary Education (DESE) administers the Missouri Teacher Education Scholarship (MTES) and the Missouri Minority Teacher Education Scholarship (MMTES) programs.�� These scholarship programs are intended to attract qualified applicants into the teaching profession.Under both scholarship programs, the recipient is required to receive a degree in education from an approved teacher education program in a four-year college or university, and teach in an elementary or secondary public school in Missouri for five years after receiving their degree.If the recipient fails to fulfill these requirements, the scholarship amount is treated as a loan and must be repaid to the state.The scholarship amounts provided by the DESE are also matched, wholly or partially, by funds from the applicable college or university. 

Our audit noted the DESE has spent approximately $3.8 million since the MTES and the MMTES scholarship programs were established.However, the department has never determined or evaluated whether these programs have effectively increased the number of teachers in the state's public schools.In fact, the DESE's database for tracking individual accounts was in such disarray, much of the data had to be recreated and summarized before we could perform any analysis of this data.Our analysis indicated nearly 40 percent of MTES and almost half of the MMTES scholarship applicants for fiscal year 1996 did not complete the requirements of the programs. 

Certain statutory provisions and departmental policies are having a negative impact on the success of the DESE's scholarship programs.Laws and policies for the program are currently focused on recruiting applicants early in their college years.In addition, teacher shortage areas designated as critical need are not considered when selecting recipients for the scholarship programs.If the state's laws and DESE's policies were amended to attract students who were serious about teacher education and who desired to teach in a critical need area, public schools would benefit by having a larger supply of teachers to fill their subject area shortage needs.It also appears state law does not adequately empower the DESE to pursue recovery from recipients of the MMTES program who default.Furthermore, the DESE does not collect the full defaulted amount from the recipients who fail to comply with the statutory requirements of the scholarships because the university's match is not collected. 

The department does not follow some of its policies for the scholarship programs, and lacks formal written policies on monitoring the status of scholarship accounts and maintaining scholarship databases.This has resulted in inconsistencies in the handling of recipient accounts.Due to the inadequate monitoring, lack of segregated duties, and limited supervision regarding the scholarship programs, non-compliance with the scholarship requirements has gone undetected, and recipients who have defaulted are not being held fully accountable. 

The department is forced to decline scholarships to approximately half of the qualified applicants due to a lack of available funding.Even though there are many more qualified applicants than there is available funding, the department has not utilized some existing funding due to complications arising from scholarship renewals.There have been virtually no increases in funding for scholarship programs since their implementation, and two loan programs approved by the General Assembly have never been funded.In addition, individual scholarship amounts have never been increased rendering the scholarship programs less attractive to prospective teachers.Monies received from recipients who have not fulfilled program requirements are not placed back into the scholarship programs to be used for future awards.If these funding issues were resolved, the scholarship programs would be available to a greater number of prospective teachers in the state and thereby lessen the impact of the teacher shortages. 

Unlike some of the scholarship and loan programs mentioned above, the DESE has not established formal requirements for its tuition reimbursement programs that require participants to complete their education program and to remain employed in Missouri's public schools for a period of time after completion.Although the teachers who participate in the tuition reimbursement programs are expected to complete their teacher education program and to obtain certification in the subject area studied, participants are not required to reimburse the funding if they fail to do so.By failing to establish appropriate requirements for the tuition reimbursement programs, there is no assurance those programs are effectively addressing the statewide areas of critical need. 

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Missouri State Auditor's Office
moaudit@auditor.mo.gov