Audit 392342

Special Tests and Provisions – Enrollment Reporting: Inaccurate Enrollment Effective Date Reported in the Campus-Level Record Data of the National Student Loan Data System (NSLDS) (Repeat Finding) East Los Angeles College Of the 20 students selected for testwork, we noted one (1) student had an enrollment status change from three-quarter time to half-time for which the enrollment effective date was incorrectly reported in the “Campus-Level Record” data section within NSLDS. While the District correctly reported the program enrollment date as 4/16/25 in the “Program-Level Record” data section of the NSLDS, the enrollment effective date was inaccurately reported as 5/13/2025 in the “Campus-Level Record” data in the NSLDS. Los Angeles Pierce College Of the 20 students tested selected for testwork, we noted one (1) student had an enrollment status change from three-quarter time to full-time for which the Enrollment Effective Date was incorrectly reported in the “Campus-Level Record” data section within NSLDS. While the District correctly reported the program enrollment effective date as 3/28/25 in the “Program-Level Record” data section of the NSLDS, the enrollment effective date was inaccurately reported as 4/15/25 in the “Campus-Level Record” data in the NSLDS.

Special Tests and Provisions – Return of Title IV Funds: Incorrect Calculation of Return of Title IV Funds; and Distance Education (DE) Courses – Implementation of Formal Process to Determine Accuracy of Student Withdrawal Date – Partial implementation of Prior Year Corrective Action Plan (CAP) (Repeat Finding)

Special Tests and Provisions – Gramm-Leach-Bliley Act (GLBA) – Student Information Security: Implement Data at Rest Encryption for SAP and PS SIS (Repeat Finding) Drive-level encryption is implemented and observed for a sample workstation that processes customer information. However, encryption mechanisms are not currently implemented for SAP and PeopleSoft (PS) Student Information Systems (SIS) servers. Compliance requirement 16 CFR 314.4(c)(3) requires institutions to protect by encryption of all students’ data held at rest. As of review date, implementation has been deferred to the 3rd Quarter of 2026.

Allowable Costs/ Cost Principles: Incorrect Salary Allocations Charged to Programs: Student Support Services Program (Award No. P042A201884) For 2 of 5 time and effort reports selected for allowable costs testwork at Los Angeles Southwest College, we noted the hours worked related to this grant program per the employee’s time and effort report did not agree to the employee’s payroll amount charged to the grant as follows: – One (1) time and effort report reported no hours worked on the grant program; however, 56 hours were charged to the grant program per the general ledger of expenditures. • One (1) time and effort report reported 10.5 hours worked on the grant program; however, 62 hours were charged to the grant program per the general ledger of expenditures. Talent Search Program (Award No. P044A210635) For 1 of 4 time and effort reports selected for allowable costs testwork at Los Angeles Southwest College, we noted the hours worked related to this grant program per the employee’s time and effort report did not agree to the employee’s payroll amount charged to the grant as follows: • One (1) time and effort reported 10% of the employee’s total hours were charged to the grant program; however, 24.11% of total hours were charged to the grant program per the general ledger of expenditures. As a result, the time and effort reports did not accurately support the salary costs charged to the grant programs.

Eligibility: Lack of Formal Review of Student Eligibility Determination; and Missing Student Eligibility Documentation A. Lack of Formal Review of Student Eligibility Determination Los Angeles City College (Student Support Services Program – Award No. P042A200354) For 5 out of 5 students selected for eligibility testwork, the campus utilized a web-based TRIO application that did not include evidence of review and approval by a supervising program official. While the campus coordinates with the Financial Aid Department to determine low-income and/or first-generation status and verify enrollment status and GPA at the time of application, the campus could not provide documentation demonstrating that eligibility determinations were formally reviewed and approved by the program director or other authorized official prior to the provision of TRIO services. B. Missing Student Eligibility Documentation Los Angeles Southwest College (Student Support Services Program – Award No. P042A201884) For 5 of 5 students selected for eligibility testwork, the campus was unable to locate various supporting documentation requested by the auditors, including student eligibility application forms, records of program services provided, and documentation of grant amounts awarded to students.

Reporting: Late Submission and Non-Submission of Annual Performance Reports (APR); Lack of Supporting Documentation for Student Information; and Inaccurate Key Line-Item Information A. Late Submission and Non-Submission of Annual Performance Reports (APR) Los Angeles Southwest College - Student Support Services Program – Award No. P042A201884 The 2023–2024 Annual Performance Report (APR) for the Student Support Services Program was submitted and certified on December 13, 2024, which is 7 days after the required submission deadline of December 6, 2024. Los Angeles Southwest College -Student Support Services STEM Program – Award No. P042A201432 We were informed by the campus director that the APR for fiscal year 2023-24 was not submitted, as required. B. Lack of Supporting Documentation for Student Information Los Angeles Southwest College – Student Support Services Program (Award No. P042A201884) For 5 of 5 students selected for reporting testwork, we noted that the campus was unable to locate supporting documentation. Missing documentation included student application forms, records supporting the “date of first project service”, and student transcripts. C. Inaccurate Key Line Item Information Los Angeles City College - Student Support Services Program (Award No. P042A200354) For 2 of 4 students selected for reporting testwork, we noted the following inaccurate data in the APR: • The APR data field #31 “Undergraduate Degree/Certificate Completed at Grantee Institution” was reported “8 = No degree/certificate, still enrolled at grantee institution” and should have been reported “10 = Associate’s degree only—Did not transfer from a 2- to a 4-year institution”. We noted that the students’ transcripts indicated the students earned associate degrees prior to the reporting period end. Los Angeles Valley College - Student Support Services Program (Award No. P042A201769) For 1 of 4 students selected for reporting testwork, we noted the following inaccurate data in the APR: • The APR data field #22 (Participant Status), was reported as “1 – New Participant” and should have been reported as “2 – Continuing Participant.” • The APR data field #27 (College Grade Level at End of Academic Year) was reported as “3 – Second Year/Sophomore” and should have been reported as “2 – First Year/Freshman” per the student’s transcript. In addition, we noted that the total number of participants reported in the APR (217 students) did not agree to the campus’ supporting list of participants on file (218 students).

Allowable Costs/ Cost Principles: Lack of Time and Effort Reporting: For all time and effort reports selected for allowable cost testwork at Los Angeles Southwest College (total of 22 time and effort reports) related to 7 employees, we noted time and effort certifications were not prepared to support the allocation of salaries and wages charged to the program.

Reporting: Late Submission of Annual Performance Report (APR): In performing reporting testwork for Los Angeles Mission College, we noted that the following APRs for the STEMM Academy program were submitted after the required due date: • Fiscal Year 2023–24 APR was submitted on February 21, 2025, which is 112 days after the required submission due date of November 1, 2024. • Fiscal Year 2024–25 APR was submitted on November 6, 2025, which is 5 days after the required submission due date of November 1, 2025.