These Colleges’ Finances Are Now Being Watched More Closely by the Education Dept.

Nearly 40 universities and colleges, including Howard University, are facing increased scrutiny from the U.S. Education Department regarding their finances, according to a list released on Thursday by the department. For Howard the designation is the latest setback for an institution that has weathered intense controversy over its student-aid practices.

Under the monitoring regime imposed by the department, known as HCM2, Howard will no longer receive tens of millions of dollars in financial aid in advance of its disbursement to students. Rather, Howard will need to disburse those funds from its own pockets, and then submit detailed paperwork on each recipient before being reimbursed by the department. The regime differs from HCM1, under which colleges face less-stringent checks. Howard’s change in monitoring status was first reported by The Washington Post.

Thirty-seven institutions, penalized under either HCM1 or HCM2, were added to the department’s list as of September 1, the most recent update since the last one, on June 1. Sixty-five institutions were removed from the list between June and September. Altogether, 516 universities and colleges face heightened monitoring from the department, with institutions such as Cheyney University of Pennsylvania and Lincoln University of California facing the same intense examination as Howard.

A financial audit, whose existence was confirmed earlier this year, found Howard had improperly disbursed grants to university employees. Those employees were fired for “gross misconduct and neglect of duties,” according to a university statement.

In a written statement provided to The Chronicle, Howard’s president, Wayne A.I. Frederick, said the university had “made significant reforms” and had expanded oversight of financial aid. He continued: “The university will continue to partner with Financial Aid Services, and work closely with the Department of Education, to ensure Howard students receive best in class service in the administration of financial aid. It is important to note that we are taking all necessary measures to avoid any adverse impact to students in the processing of aid and receipt of funds. The entire cabinet and I remain focused on ensuring Howard’s future remains bright and the institution is led with transparency and accountability.”

Here are the colleges and universities that were most recently added to the list of more closely monitored institutions:

Dan Bauman is a reporter who investigates and writes about all things data in higher education. Tweet him at @danbauman77 or email him at dan.bauman@chronicle.com.