Audit 357766

FY End
2024-02-28
Total Expended
$1.66M
Findings
26
Programs
3

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
562129 2024-001 - Yes L
562130 2024-001 - Yes L
562131 2024-002 - - N
562132 2024-003 - - N
562133 2024-004 - Yes N
562134 2024-004 - Yes N
562135 2024-005 Significant Deficiency Yes N
562136 2024-005 Significant Deficiency Yes N
562137 2024-006 - Yes N
562138 2024-006 - Yes N
562139 2024-007 Material Weakness Yes C
562140 2024-008 Material Weakness - H
562141 2024-009 - Yes L
1138571 2024-001 - Yes L
1138572 2024-001 - Yes L
1138573 2024-002 - - N
1138574 2024-003 - - N
1138575 2024-004 - Yes N
1138576 2024-004 - Yes N
1138577 2024-005 Significant Deficiency Yes N
1138578 2024-005 Significant Deficiency Yes N
1138579 2024-006 - Yes N
1138580 2024-006 - Yes N
1138581 2024-007 Material Weakness Yes C
1138582 2024-008 Material Weakness - H
1138583 2024-009 - Yes L

Programs

ALN Program Spent Major Findings
84.063 Federal Pell Grant Program $832,607 Yes 6
84.268 Federal Direct Student Loans $495,733 Yes 4
84.425 Education Stabilization Fund $330,146 Yes 3

Contacts

Name Title Type
F7ANXNHBQSP5 Danielle Skinner Auditee
5624044295 Linda Narciso Auditor
No contacts on file

Notes to SEFA

Title: NOTE 1 BASIS OF PRESENTATION Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of Los Angeles Chapter National Tooling & Machining Association Training Center Trust dba NTMA Training Centers (the Institution), under programs of the federal government for the year ended February 28, 2024. The information in this Schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Award (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the Institution, it is not intended to, and does not, present the statement of financial position, activities, or cash flows of the Institution.
Title: NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. Amounts reported in the Schedule agree in all material respects with the amounts reported in the related federal financial reports.
Title: NOTE 3 FEDERAL STUDENT LOAN PROGRAMS Accounting Policies: Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. De Minimis Rate Used: N Rate Explanation: The Institution has elected not to use the 10% de minimis cost rate as allowed under Uniform Guidance. The federal student loan programs listed below are administered directly by the Institution, and balances and transactions relating to these programs are included in the Institution’s basic financial statements. Loans outstanding at the beginning of the year and loans made during the year and administrative cost allowances are included in the federal expenditures presented in the Schedule. Loan advances made to students for the year ended February 28, 2024 and loans outstanding held by the Institution as of February 28, 2024 are as follows:

Finding Details

Reporting: Inaccurate Reporting of Origination and Disbursement Records to Common Origination and Disbursement (COD) System We noted that 1 out of 20 students selected for Reporting had discrepancies in the disbursement date reported on the disbursement records compared to the actual disbursement date. The correct date of disbursement was December 18, 2023, but the date reported in COD system was November 29, 2023 due to the incorrect date encoded. This error did not result in a questioned cost, however, the reported date of distribution submitted in the COD system is still inaccurate.
Reporting: Inaccurate Reporting of Origination and Disbursement Records to Common Origination and Disbursement (COD) System We noted that 1 out of 20 students selected for Reporting had discrepancies in the disbursement date reported on the disbursement records compared to the actual disbursement date. The correct date of disbursement was December 18, 2023, but the date reported in COD system was November 29, 2023 due to the incorrect date encoded. This error did not result in a questioned cost, however, the reported date of distribution submitted in the COD system is still inaccurate.
Special Tests and Provision: Verification: Missing Information on Identity/Statement of Educational Purpose Form We noted that 1 out of 9 students selected for Verification testing had a missing certification date when signed by the Institution in their Identity/Statement of Educational Purpose form, rendering the documentation incomplete.
Special Tests and Provision: Disbursements to and or on Behalf of Students: Untimely Distribution of Credit Balance to Student We found that 1 out of 20 students selected for testing had a credit balance after the disbursement of Title IV funds on June 12, 2023. However, the institution did not pay the resulting credit balance directly to the student until July 12, 2023—30 days after the credit balance was created. Furthermore, the institution did not obtain voluntary authorization from the student to allow the credit balance to be held.
Special Tests and Provision: Return of Title IV Funds: Incorrect Calculation of Return of Title IV Funds, Untimely Return of Grant Overpayment to Secretary Incorrect Calculation of Return to Title IV Funds We noted that 3 of 7 students had an incorrect calculation of the percentage of completion based on the student’s actual number of days completed during the enrollment period. For 2 of these students, the Institution had erroneously entered the scheduled end date, which resulted in an incorrect number of calendar days in the period of enrollment. For the remaining student, the Institution had used an incorrect date of withdrawal, which resulted in an incorrect number of calendar days completed in that period as of the student’s withdrawal date. These errors caused an overstatement of institutional return by $3,517 for the 2 students and an understatement of institutional return by $176 for the remaining student. Untimely Return of Grant Overpayment to Secretary We noted that 1 of 7 students selected for Title IV funds return testing had funds deposited into the SFA account or transferred to ED beyond the required 45-day timeframe after the institution determined the student had withdrawn. The transfer was completed 55 days late.
Special Tests and Provision: Return of Title IV Funds: Incorrect Calculation of Return of Title IV Funds, Untimely Return of Grant Overpayment to Secretary Incorrect Calculation of Return to Title IV Funds We noted that 3 of 7 students had an incorrect calculation of the percentage of completion based on the student’s actual number of days completed during the enrollment period. For 2 of these students, the Institution had erroneously entered the scheduled end date, which resulted in an incorrect number of calendar days in the period of enrollment. For the remaining student, the Institution had used an incorrect date of withdrawal, which resulted in an incorrect number of calendar days completed in that period as of the student’s withdrawal date. These errors caused an overstatement of institutional return by $3,517 for the 2 students and an understatement of institutional return by $176 for the remaining student. Untimely Return of Grant Overpayment to Secretary We noted that 1 of 7 students selected for Title IV funds return testing had funds deposited into the SFA account or transferred to ED beyond the required 45-day timeframe after the institution determined the student had withdrawn. The transfer was completed 55 days late.
Special Tests and Provision: Enrollment Reporting: Accuracy in Reporting of Campus and Program Level Record Data to NSLDS, Untimely Certification of Enrollment Status Accuracy in Reporting Program Level Record Data to NSLDS We noted that 15 of 15 students selected for enrollment reporting testing had discrepancies in the published program length reported on the NSLDS Program Level Details page compared to the length published on the Institution’s official website. Specifically, students enrolled in the "Machine Tool Technology/Machinist" program exhibited a published program length of 7 years within NSLDS, whereas the institution's website specifies a program duration of 9 months or 905 hours. Accuracy in Reporting Campus Level Record Data to NSLDS We noted that 2 of 15 students selected for enrollment reporting testing had inconsistent enrollment information in Campus Level Record Data in NSLDS. For 1 of the 2 students, the Institution erroneously reported an incorrect date of Graduation in NSLDS. The date reported was the start date of the enrollment period, instead of the last date of attendance of the student. For the remaining 1, the Institution erroneously reported a “withdrawn” status in NSLDS, however, the student graduated on May 20, 2024. No return of Title IV funds was noted, however, the status reported in NSLDS is still inaccurate. Untimely Certification of Enrollment Status We noted 10 of 15 students selected for enrollment reporting testing were not certified within 60 days from the date of enrollment change. The institution has certified the students identified only after 72 days to 325 days, which is 12 days to 265 days late.
Special Tests and Provision: Enrollment Reporting: Accuracy in Reporting of Campus and Program Level Record Data to NSLDS, Untimely Certification of Enrollment Status Accuracy in Reporting Program Level Record Data to NSLDS We noted that 15 of 15 students selected for enrollment reporting testing had discrepancies in the published program length reported on the NSLDS Program Level Details page compared to the length published on the Institution’s official website. Specifically, students enrolled in the "Machine Tool Technology/Machinist" program exhibited a published program length of 7 years within NSLDS, whereas the institution's website specifies a program duration of 9 months or 905 hours. Accuracy in Reporting Campus Level Record Data to NSLDS We noted that 2 of 15 students selected for enrollment reporting testing had inconsistent enrollment information in Campus Level Record Data in NSLDS. For 1 of the 2 students, the Institution erroneously reported an incorrect date of Graduation in NSLDS. The date reported was the start date of the enrollment period, instead of the last date of attendance of the student. For the remaining 1, the Institution erroneously reported a “withdrawn” status in NSLDS, however, the student graduated on May 20, 2024. No return of Title IV funds was noted, however, the status reported in NSLDS is still inaccurate. Untimely Certification of Enrollment Status We noted 10 of 15 students selected for enrollment reporting testing were not certified within 60 days from the date of enrollment change. The institution has certified the students identified only after 72 days to 325 days, which is 12 days to 265 days late.
Special Tests and Provision: Enrollment Reporting: Untimely Completion and Return of Enrollment Roster File in National Student Loan Data System (NSLDS) Per inspection of the Enrollment Reporting Summary Report (SCHER 1) report for the period ending February 28, 2024, we noted that the Institution received enrollment roster files on July 1, 2023, September 1, 2023, and November 1, 2023; however, the Institution responded only in August 30, 2023, October 3, 2023, and December 4, 2023, respectively, which are more than the 15-day requirement.
Special Tests and Provision: Enrollment Reporting: Untimely Completion and Return of Enrollment Roster File in National Student Loan Data System (NSLDS) Per inspection of the Enrollment Reporting Summary Report (SCHER 1) report for the period ending February 28, 2024, we noted that the Institution received enrollment roster files on July 1, 2023, September 1, 2023, and November 1, 2023; however, the Institution responded only in August 30, 2023, October 3, 2023, and December 4, 2023, respectively, which are more than the 15-day requirement.
Cash Management: Late Disbursements of HEERF Student Aid Portion We noted that the one cash drawdown made by the Institution from the HEERF Student Aid Portion on March 17, 2023 amounting to $201,814 was not distributed within 15 calendar days from the date of the drawdown. Disbursements of student aid during the year were made 90 to 269 days from the date of the drawdown. As of February 29, 2024, the HEERF Student Aid Portion fund undistributed amounted to $130,093.
Period of Performance: Untimely Filing of No Cost Extension On October 25, 2023, the Institution submitted its No Cost Extension to extend the period of performance of HEERF Student Aid Portion Fund until December 31, 2023. The request, however, was not accepted by the ED due to late filing. As a result, the Institution’s performance period was only until June 30, 2023, and subsequent distributions to 13 students in December 2023 totaling $41,146 were considered unallowed activities.
Reporting: Accessibility of Published Links Related to the Quarterly Report on the Institution's Website We noted that the Institution's Quarterly Budget and Expenditure Report for all HEERF I, II, and III Grant Funds covering the quarter ending March 31, 2024 were not posted on the Institution's primary website. The links directed to the quarterly report ending June 30, 2022 and March 31, 2023, were posted on June 11, 2023, which was past the deadline of June 10, 2023. Furthermore, the HEERF I, II, & III Annual Performance Report Form was not posted on the ESF data website.
Reporting: Inaccurate Reporting of Origination and Disbursement Records to Common Origination and Disbursement (COD) System We noted that 1 out of 20 students selected for Reporting had discrepancies in the disbursement date reported on the disbursement records compared to the actual disbursement date. The correct date of disbursement was December 18, 2023, but the date reported in COD system was November 29, 2023 due to the incorrect date encoded. This error did not result in a questioned cost, however, the reported date of distribution submitted in the COD system is still inaccurate.
Reporting: Inaccurate Reporting of Origination and Disbursement Records to Common Origination and Disbursement (COD) System We noted that 1 out of 20 students selected for Reporting had discrepancies in the disbursement date reported on the disbursement records compared to the actual disbursement date. The correct date of disbursement was December 18, 2023, but the date reported in COD system was November 29, 2023 due to the incorrect date encoded. This error did not result in a questioned cost, however, the reported date of distribution submitted in the COD system is still inaccurate.
Special Tests and Provision: Verification: Missing Information on Identity/Statement of Educational Purpose Form We noted that 1 out of 9 students selected for Verification testing had a missing certification date when signed by the Institution in their Identity/Statement of Educational Purpose form, rendering the documentation incomplete.
Special Tests and Provision: Disbursements to and or on Behalf of Students: Untimely Distribution of Credit Balance to Student We found that 1 out of 20 students selected for testing had a credit balance after the disbursement of Title IV funds on June 12, 2023. However, the institution did not pay the resulting credit balance directly to the student until July 12, 2023—30 days after the credit balance was created. Furthermore, the institution did not obtain voluntary authorization from the student to allow the credit balance to be held.
Special Tests and Provision: Return of Title IV Funds: Incorrect Calculation of Return of Title IV Funds, Untimely Return of Grant Overpayment to Secretary Incorrect Calculation of Return to Title IV Funds We noted that 3 of 7 students had an incorrect calculation of the percentage of completion based on the student’s actual number of days completed during the enrollment period. For 2 of these students, the Institution had erroneously entered the scheduled end date, which resulted in an incorrect number of calendar days in the period of enrollment. For the remaining student, the Institution had used an incorrect date of withdrawal, which resulted in an incorrect number of calendar days completed in that period as of the student’s withdrawal date. These errors caused an overstatement of institutional return by $3,517 for the 2 students and an understatement of institutional return by $176 for the remaining student. Untimely Return of Grant Overpayment to Secretary We noted that 1 of 7 students selected for Title IV funds return testing had funds deposited into the SFA account or transferred to ED beyond the required 45-day timeframe after the institution determined the student had withdrawn. The transfer was completed 55 days late.
Special Tests and Provision: Return of Title IV Funds: Incorrect Calculation of Return of Title IV Funds, Untimely Return of Grant Overpayment to Secretary Incorrect Calculation of Return to Title IV Funds We noted that 3 of 7 students had an incorrect calculation of the percentage of completion based on the student’s actual number of days completed during the enrollment period. For 2 of these students, the Institution had erroneously entered the scheduled end date, which resulted in an incorrect number of calendar days in the period of enrollment. For the remaining student, the Institution had used an incorrect date of withdrawal, which resulted in an incorrect number of calendar days completed in that period as of the student’s withdrawal date. These errors caused an overstatement of institutional return by $3,517 for the 2 students and an understatement of institutional return by $176 for the remaining student. Untimely Return of Grant Overpayment to Secretary We noted that 1 of 7 students selected for Title IV funds return testing had funds deposited into the SFA account or transferred to ED beyond the required 45-day timeframe after the institution determined the student had withdrawn. The transfer was completed 55 days late.
Special Tests and Provision: Enrollment Reporting: Accuracy in Reporting of Campus and Program Level Record Data to NSLDS, Untimely Certification of Enrollment Status Accuracy in Reporting Program Level Record Data to NSLDS We noted that 15 of 15 students selected for enrollment reporting testing had discrepancies in the published program length reported on the NSLDS Program Level Details page compared to the length published on the Institution’s official website. Specifically, students enrolled in the "Machine Tool Technology/Machinist" program exhibited a published program length of 7 years within NSLDS, whereas the institution's website specifies a program duration of 9 months or 905 hours. Accuracy in Reporting Campus Level Record Data to NSLDS We noted that 2 of 15 students selected for enrollment reporting testing had inconsistent enrollment information in Campus Level Record Data in NSLDS. For 1 of the 2 students, the Institution erroneously reported an incorrect date of Graduation in NSLDS. The date reported was the start date of the enrollment period, instead of the last date of attendance of the student. For the remaining 1, the Institution erroneously reported a “withdrawn” status in NSLDS, however, the student graduated on May 20, 2024. No return of Title IV funds was noted, however, the status reported in NSLDS is still inaccurate. Untimely Certification of Enrollment Status We noted 10 of 15 students selected for enrollment reporting testing were not certified within 60 days from the date of enrollment change. The institution has certified the students identified only after 72 days to 325 days, which is 12 days to 265 days late.
Special Tests and Provision: Enrollment Reporting: Accuracy in Reporting of Campus and Program Level Record Data to NSLDS, Untimely Certification of Enrollment Status Accuracy in Reporting Program Level Record Data to NSLDS We noted that 15 of 15 students selected for enrollment reporting testing had discrepancies in the published program length reported on the NSLDS Program Level Details page compared to the length published on the Institution’s official website. Specifically, students enrolled in the "Machine Tool Technology/Machinist" program exhibited a published program length of 7 years within NSLDS, whereas the institution's website specifies a program duration of 9 months or 905 hours. Accuracy in Reporting Campus Level Record Data to NSLDS We noted that 2 of 15 students selected for enrollment reporting testing had inconsistent enrollment information in Campus Level Record Data in NSLDS. For 1 of the 2 students, the Institution erroneously reported an incorrect date of Graduation in NSLDS. The date reported was the start date of the enrollment period, instead of the last date of attendance of the student. For the remaining 1, the Institution erroneously reported a “withdrawn” status in NSLDS, however, the student graduated on May 20, 2024. No return of Title IV funds was noted, however, the status reported in NSLDS is still inaccurate. Untimely Certification of Enrollment Status We noted 10 of 15 students selected for enrollment reporting testing were not certified within 60 days from the date of enrollment change. The institution has certified the students identified only after 72 days to 325 days, which is 12 days to 265 days late.
Special Tests and Provision: Enrollment Reporting: Untimely Completion and Return of Enrollment Roster File in National Student Loan Data System (NSLDS) Per inspection of the Enrollment Reporting Summary Report (SCHER 1) report for the period ending February 28, 2024, we noted that the Institution received enrollment roster files on July 1, 2023, September 1, 2023, and November 1, 2023; however, the Institution responded only in August 30, 2023, October 3, 2023, and December 4, 2023, respectively, which are more than the 15-day requirement.
Special Tests and Provision: Enrollment Reporting: Untimely Completion and Return of Enrollment Roster File in National Student Loan Data System (NSLDS) Per inspection of the Enrollment Reporting Summary Report (SCHER 1) report for the period ending February 28, 2024, we noted that the Institution received enrollment roster files on July 1, 2023, September 1, 2023, and November 1, 2023; however, the Institution responded only in August 30, 2023, October 3, 2023, and December 4, 2023, respectively, which are more than the 15-day requirement.
Cash Management: Late Disbursements of HEERF Student Aid Portion We noted that the one cash drawdown made by the Institution from the HEERF Student Aid Portion on March 17, 2023 amounting to $201,814 was not distributed within 15 calendar days from the date of the drawdown. Disbursements of student aid during the year were made 90 to 269 days from the date of the drawdown. As of February 29, 2024, the HEERF Student Aid Portion fund undistributed amounted to $130,093.
Period of Performance: Untimely Filing of No Cost Extension On October 25, 2023, the Institution submitted its No Cost Extension to extend the period of performance of HEERF Student Aid Portion Fund until December 31, 2023. The request, however, was not accepted by the ED due to late filing. As a result, the Institution’s performance period was only until June 30, 2023, and subsequent distributions to 13 students in December 2023 totaling $41,146 were considered unallowed activities.
Reporting: Accessibility of Published Links Related to the Quarterly Report on the Institution's Website We noted that the Institution's Quarterly Budget and Expenditure Report for all HEERF I, II, and III Grant Funds covering the quarter ending March 31, 2024 were not posted on the Institution's primary website. The links directed to the quarterly report ending June 30, 2022 and March 31, 2023, were posted on June 11, 2023, which was past the deadline of June 10, 2023. Furthermore, the HEERF I, II, & III Annual Performance Report Form was not posted on the ESF data website.