Audit 300097

Allowable Costs & Activities Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department ofthe Treasury Pass-Through Entity: California Community Colleges Chancellor's Office Criteria or Specific Requirements The Uniform Guidance Cost Principals described in 31 CFR Part 35, Subpart A, established the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) to support governments in their response to and recovery from the COVID-19 public health emergency. As outlined in the Final Rule set forth by the U.S. Department of the Treasury, to identify eligible uses of funds, recipients should (1) identify a COVID-19 public health or economic impact on an individual or class (i.e., a group) and (2) design a program that responds to that impact. As a recipient of CSLFRF funding, the California Community Colleges Chancellor’s Office (CCCCO) utilized the funding to provide emergency financial assistance grants to low-income students, enrolled at the California community colleges, who had been disproportionally impacted by the COVID-19 public health emergency. The CCCCO established the following eligibility criteria for students to receive CSLFRF grants: • U.S. citizen or eligible non-citizen • Current enrollment in credit or noncredit courses at a California community college • Demonstrate an emergency financial aid need • Qualify as low-income by meeting the requirements to receive a California College Promise Grant (CCPG} or is projected to receive a CCPG for the upcoming term Condition Significant Deficiency – The District disbursed CSLFRF grants to 2 ineligible students out of the 23 students tested. Questioned Costs During our testing, we identified that the District disbursed $6,000 in CSLFRF to 2 ineligible students out of the 23 students tested. Context The District disbursed CSLFRF grants to 115 students during the fiscal year totaling $336,724 in aid. Effect Without proper monitoring of the eligibility requirements set forth by the pass-through entity, the District is at risk of noncompliance with the above referenced criteria. Cause The District did not comply with the most up-to-date student eligibility requirements set forth by the California Community College Chancellor’s Office. Recommendation It is recommended that District establish effective controls and procedures to ensure that funds are only being distributed to those who are eligible to receive CSFRF student aid.

Allowable Costs & Activities Program Name: Coronavirus State and Local Fiscal Recovery Funds Assistance Listing Number: 21.027 Federal Agency: U.S. Department ofthe Treasury Pass-Through Entity: California Community Colleges Chancellor's Office Criteria or Specific Requirements The Uniform Guidance Cost Principals described in 31 CFR Part 35, Subpart A, established the Coronavirus State and Local Fiscal Recovery Fund (CSLFRF) to support governments in their response to and recovery from the COVID-19 public health emergency. As outlined in the Final Rule set forth by the U.S. Department of the Treasury, to identify eligible uses of funds, recipients should (1) identify a COVID-19 public health or economic impact on an individual or class (i.e., a group) and (2) design a program that responds to that impact. As a recipient of CSLFRF funding, the California Community Colleges Chancellor’s Office (CCCCO) utilized the funding to provide emergency financial assistance grants to low-income students, enrolled at the California community colleges, who had been disproportionally impacted by the COVID-19 public health emergency. The CCCCO established the following eligibility criteria for students to receive CSLFRF grants: • U.S. citizen or eligible non-citizen • Current enrollment in credit or noncredit courses at a California community college • Demonstrate an emergency financial aid need • Qualify as low-income by meeting the requirements to receive a California College Promise Grant (CCPG} or is projected to receive a CCPG for the upcoming term Condition Significant Deficiency – The District disbursed CSLFRF grants to 2 ineligible students out of the 23 students tested. Questioned Costs During our testing, we identified that the District disbursed $6,000 in CSLFRF to 2 ineligible students out of the 23 students tested. Context The District disbursed CSLFRF grants to 115 students during the fiscal year totaling $336,724 in aid. Effect Without proper monitoring of the eligibility requirements set forth by the pass-through entity, the District is at risk of noncompliance with the above referenced criteria. Cause The District did not comply with the most up-to-date student eligibility requirements set forth by the California Community College Chancellor’s Office. Recommendation It is recommended that District establish effective controls and procedures to ensure that funds are only being distributed to those who are eligible to receive CSFRF student aid.