There are errors here :
var formTag = document.getElementsByTagName("form"), // form tag is an array
selectListItem = $('select'),
makeSelect = document.createElement('select'),
makeSelect.setAttribute("id", "groups");
The code must change to:
var formTag = document.getElementsByTagName("form");
var selectListItem = $('select');
var makeSelect = document.createElement('select');
makeSelect.setAttribute("id", "groups");
By the way, there is another error at line 129 :
var createLi.appendChild(createSubList);
Replace it with:
createLi.appendChild(createSubList);