Audit 51406

FY End
2022-06-30
Total Expended
$141.63M
Findings
10
Programs
26
Organization: City Colleges of Chicago (IL)
Year: 2022 Accepted: 2022-12-21
Auditor: Rsm US LLP

Organization Exclusion Status:

Checking exclusion status...

Findings

ID Ref Severity Repeat Requirement
43870 2022-002 Significant Deficiency Yes N
43871 2022-002 Significant Deficiency Yes N
43872 2022-003 - Yes N
43873 2022-001 Significant Deficiency Yes L
43874 2022-001 Significant Deficiency Yes L
620312 2022-002 Significant Deficiency Yes N
620313 2022-002 Significant Deficiency Yes N
620314 2022-003 - Yes N
620315 2022-001 Significant Deficiency Yes L
620316 2022-001 Significant Deficiency Yes L

Contacts

Name Title Type
L3EXK4J98JQ1 Daryl Okrzesik Auditee
3125532893 Kelly Kirkman Auditor
No contacts on file

Notes to SEFA

Title: Amount of Federal Insurance in Effect During the Year Accounting Policies: City Colleges of Chicago, Community College District No. 508 (City Colleges) is a separate taxing body created under the Illinois Public Community College Act of 1965, with boundaries coterminous with the City of Chicago. City Colleges delivers educational and student services through seven colleges, each of which is separately accredited by the North Central Association. The seven colleges are Richard J. Daley College, Harold Washington College, Kennedy-King College, Malcolm X College, Olive-Harvey College, Harry S. Truman college and Wilbur Wright College. The Board of Trustees, appointed by the Mayor of the City of Chicago and ratified by the City Council of Chicago, is responsible for establishing the policies and procedures by which City Colleges is governed. The U.S. Department of Education has been designated as the City Colleges cognizant agency for the audit performed in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Fiscal period audited: Single audit testing procedures were performed for program transactions that occurred during the fiscal year ended June 30, 2022. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City Colleges under programs of the federal government for the year ended June 30, 2022 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of City Colleges, it is not intended to and does not present the financial position changes in net position, or cash flows of City Colleges. De Minimis Rate Used: N Rate Explanation: City Colleges has a plan for allocation of common and indirect costs related to grant programs in accordance with the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The indirect cost rate used to allocate amounts to grant programs during the fiscal year ended June 30, 2022, is primarily based on a federally negotiated higher education rate agreement of 53%. Because City Colleges negotiated an indirect cost rate, it cannot elect to use the 10% de minimis rate. No federal insurance was received by City Colleges during the year ended June 30, 2022.
Title: Federal Student Loan Programs Accounting Policies: City Colleges of Chicago, Community College District No. 508 (City Colleges) is a separate taxing body created under the Illinois Public Community College Act of 1965, with boundaries coterminous with the City of Chicago. City Colleges delivers educational and student services through seven colleges, each of which is separately accredited by the North Central Association. The seven colleges are Richard J. Daley College, Harold Washington College, Kennedy-King College, Malcolm X College, Olive-Harvey College, Harry S. Truman college and Wilbur Wright College. The Board of Trustees, appointed by the Mayor of the City of Chicago and ratified by the City Council of Chicago, is responsible for establishing the policies and procedures by which City Colleges is governed. The U.S. Department of Education has been designated as the City Colleges cognizant agency for the audit performed in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Fiscal period audited: Single audit testing procedures were performed for program transactions that occurred during the fiscal year ended June 30, 2022. The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of City Colleges under programs of the federal government for the year ended June 30, 2022 and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Because the Schedule presents only a selected portion of the operations of City Colleges, it is not intended to and does not present the financial position changes in net position, or cash flows of City Colleges. De Minimis Rate Used: N Rate Explanation: City Colleges has a plan for allocation of common and indirect costs related to grant programs in accordance with the cost principles contained in the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. The indirect cost rate used to allocate amounts to grant programs during the fiscal year ended June 30, 2022, is primarily based on a federally negotiated higher education rate agreement of 53%. Because City Colleges negotiated an indirect cost rate, it cannot elect to use the 10% de minimis rate. Loans made under the Federal Direct Student Loan program (Assistance Listing Number 84.268) issued to eligible students of City Colleges during the fiscal year ended June 30, 2022, are summarized as follows: Guaranteed Loan Program: Subsidized $1,456,701; Unsubsidized: $1,437,717; and total Federal Student Loan Programs of $2,894,418. The loan programs include subsidized and unsubsidized loans. The value of loans issued for the Federal Student Loan Program is based on disbursement amounts. The loan amounts issued during the year are disclosed on the schedule. City Colleges is responsible only for the performance of certain administrative duties with respect to the federally guaranteed student loan programs and, accordingly, balances and transactions relating to these loan programs are not included in City Colleges basic financial statements. Therefore, it is not practicable to determine the balance of loans outstanding to students and former students of City Colleges at June 30, 2022.

Finding Details

Finding 2022-002 ? Return of Title IV Funds ? Enrollment Reporting Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. The student?s status change at the campus level and program were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? status change at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For nine out of sixty students tested (15%) who withdrew from City Colleges, the students? status change at the campus level and program level was never reported the National Student Loan Data System (NSLDS). ? For six out of sixty students tested (10%) who withdrew from City Colleges, the students? status change at the program level was never reported the National Student Loan Data System (NSLDS). ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the program level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the campus level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For four out of sixty students tested (7%) who withdrew from City Colleges, the students? withdrawal status reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. Criteria CFR section 685.309 and 690.83(b)(2) requires City Colleges to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student?s date of determination of withdrawal. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause The financial aid office does not have an effective system in place to ensure all official student status changes are reported to the lender in a timely manner. Prevalence Frequent. Twenty out of sixty students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend City Colleges implement monitoring procedures which will promptly notify the financial aid office of any student status changes. A system of monitoring procedures and/or controls will ensure the College is reporting any status changes to the lender in a timely manner. City Colleges should implement a review process to ensure all status changes are addressed by the financial aid office. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-002 ? Return of Title IV Funds ? Enrollment Reporting Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. The student?s status change at the campus level and program were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? status change at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For nine out of sixty students tested (15%) who withdrew from City Colleges, the students? status change at the campus level and program level was never reported the National Student Loan Data System (NSLDS). ? For six out of sixty students tested (10%) who withdrew from City Colleges, the students? status change at the program level was never reported the National Student Loan Data System (NSLDS). ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the program level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the campus level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For four out of sixty students tested (7%) who withdrew from City Colleges, the students? withdrawal status reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. Criteria CFR section 685.309 and 690.83(b)(2) requires City Colleges to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student?s date of determination of withdrawal. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause The financial aid office does not have an effective system in place to ensure all official student status changes are reported to the lender in a timely manner. Prevalence Frequent. Twenty out of sixty students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend City Colleges implement monitoring procedures which will promptly notify the financial aid office of any student status changes. A system of monitoring procedures and/or controls will ensure the College is reporting any status changes to the lender in a timely manner. City Colleges should implement a review process to ensure all status changes are addressed by the financial aid office. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-003 ? Short-Term Program Placement Rate Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition The College cannot demonstrate compliance with the gainful employment placement rate calculation of 70% for the short-term program at a post-secondary vocational institution. Criteria For the Direct Loan Program, short-term eligible programs at a postsecondary vocational institution be between 300 - 599 clock hours. They must have been provided for at least one year and must have a substantiated completion and placement rate of at least 70 percent for the most recently completed award year. 34 CFR Section 668.8(f) and (g) requires the college to have documentation supporting its placement rates for each student showing that the student obtained gainful employment in the recognized occupation for which he or she was trained or in a related comparable recognized occupation. Questioned Costs There were no questioned costs with respect to this finding. Cause The financial aid office did not follow-up on the gainful employment of students. Prevalence Frequent. Five out of five students tested did not have sufficient support for the placement rate calculation. Effect Failure to calculate the placement data for each student is noncompliance with Federal regulation and could result in loss of future funding Recommendation We recommend City Colleges enhance their policies and procedures to ensure that calculation of placement rates is being maintained. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Repeat Finding: Partial Federal Program Title ? U.S. Department of Education COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF COVID-19: HEERF Student Portion: 84.425E COVID-19: HEERF Minority Serving Institutions (MSI): 84.425L Federal Award Year 2021-2022 Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. ? HEERF MSI Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. City Colleges did not publicly post certain required reports accurately. The following instance of noncompliance was identified: ? HEERF Student Portion: City Colleges posted a report on July 8, 2022 for Wilbur Wright for the period of April 1, 2022 ? June 30, 2022 which did not reconcile to the underlying expense detail as of the date of the report. The difference was $307,750. Criteria There are three components to reporting for HEERF: (1) public reporting on the (a)(1) Student Aid Portion; (2) public reporting on the (a)(1) Institutional Portion, (a)(2), and (a)(3) subprograms, as applicable; and (3) the annual report. The institutional quarterly portion reporting requirements involve publicly posting completed forms on City College?s website. The forms must be conspicuously posted on City College?s primary website on the same page the reports of City College?s activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. City Colleges must post this quarterly report form no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10) apart from the first report, which was due October 30, 2020, and the report covering the first quarter of 2021, which was due July 10, 2021. According to an electronic announcement (EA) by the Department of Education (ED) on May 6, 2020, ED required institutions that received a HEERF 18004(a)(1) Student Aid Portion Aid award to publicly post certain information on their website no later than 30 days after award, and update that information every 45 days thereafter by posting a new report. On August 31, 2020, ED revised the EA with 85 FR 53802, which decreased the frequency of subsequent reporting from every 45 days to every calendar quarter. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure the timely and accurate posting of reports. Questioned Costs There were no questioned costs with respect to this finding. Cause City Colleges did not have effective internal controls in place to ensure reports were posted accurately due to the newness of the program and how quickly it was rolled out. Prevalence Infrequent. 63 reports were required to be submitted in fiscal year 2022 relative to HEERF Student, Institutional, MSI and Annual reporting. 1 report was inaccurate and 14 did not have sufficient evidence of review. Effect The submission of inaccurate reports is noncompliance with the requirements of the grant award and could result in loss of funding or other penalties. Recommendation We recommend City Colleges implement internal controls to ensure reports are posted accurately. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Repeat Finding: Partial Federal Program Title ? U.S. Department of Education COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF COVID-19: HEERF Student Portion: 84.425E COVID-19: HEERF Minority Serving Institutions (MSI): 84.425L Federal Award Year 2021-2022 Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. ? HEERF MSI Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. City Colleges did not publicly post certain required reports accurately. The following instance of noncompliance was identified: ? HEERF Student Portion: City Colleges posted a report on July 8, 2022 for Wilbur Wright for the period of April 1, 2022 ? June 30, 2022 which did not reconcile to the underlying expense detail as of the date of the report. The difference was $307,750. Criteria There are three components to reporting for HEERF: (1) public reporting on the (a)(1) Student Aid Portion; (2) public reporting on the (a)(1) Institutional Portion, (a)(2), and (a)(3) subprograms, as applicable; and (3) the annual report. The institutional quarterly portion reporting requirements involve publicly posting completed forms on City College?s website. The forms must be conspicuously posted on City College?s primary website on the same page the reports of City College?s activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. City Colleges must post this quarterly report form no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10) apart from the first report, which was due October 30, 2020, and the report covering the first quarter of 2021, which was due July 10, 2021. According to an electronic announcement (EA) by the Department of Education (ED) on May 6, 2020, ED required institutions that received a HEERF 18004(a)(1) Student Aid Portion Aid award to publicly post certain information on their website no later than 30 days after award, and update that information every 45 days thereafter by posting a new report. On August 31, 2020, ED revised the EA with 85 FR 53802, which decreased the frequency of subsequent reporting from every 45 days to every calendar quarter. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure the timely and accurate posting of reports. Questioned Costs There were no questioned costs with respect to this finding. Cause City Colleges did not have effective internal controls in place to ensure reports were posted accurately due to the newness of the program and how quickly it was rolled out. Prevalence Infrequent. 63 reports were required to be submitted in fiscal year 2022 relative to HEERF Student, Institutional, MSI and Annual reporting. 1 report was inaccurate and 14 did not have sufficient evidence of review. Effect The submission of inaccurate reports is noncompliance with the requirements of the grant award and could result in loss of funding or other penalties. Recommendation We recommend City Colleges implement internal controls to ensure reports are posted accurately. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-002 ? Return of Title IV Funds ? Enrollment Reporting Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. The student?s status change at the campus level and program were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? status change at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For nine out of sixty students tested (15%) who withdrew from City Colleges, the students? status change at the campus level and program level was never reported the National Student Loan Data System (NSLDS). ? For six out of sixty students tested (10%) who withdrew from City Colleges, the students? status change at the program level was never reported the National Student Loan Data System (NSLDS). ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the program level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the campus level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For four out of sixty students tested (7%) who withdrew from City Colleges, the students? withdrawal status reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. Criteria CFR section 685.309 and 690.83(b)(2) requires City Colleges to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student?s date of determination of withdrawal. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause The financial aid office does not have an effective system in place to ensure all official student status changes are reported to the lender in a timely manner. Prevalence Frequent. Twenty out of sixty students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend City Colleges implement monitoring procedures which will promptly notify the financial aid office of any student status changes. A system of monitoring procedures and/or controls will ensure the College is reporting any status changes to the lender in a timely manner. City Colleges should implement a review process to ensure all status changes are addressed by the financial aid office. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-002 ? Return of Title IV Funds ? Enrollment Reporting Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Pell Grant Program: 84.063 Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s withdrawal date reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. The student?s status change at the campus level and program were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For two out of sixty students tested (3%) who withdrew from City Colleges, the students? status change at the campus level and program level were not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For nine out of sixty students tested (15%) who withdrew from City Colleges, the students? status change at the campus level and program level was never reported the National Student Loan Data System (NSLDS). ? For six out of sixty students tested (10%) who withdrew from City Colleges, the students? status change at the program level was never reported the National Student Loan Data System (NSLDS). ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the program level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For one out of sixty students tested (2%) who withdrew from City Colleges, the student?s status change at the campus level was not reported to the National Student Loan Data System (NSLDS) within the 60 day requirement. ? For four out of sixty students tested (7%) who withdrew from City Colleges, the students? withdrawal status reported to the National Student Loan Data System (NSLDS) for campus level and program level did not match the institution?s records. Criteria CFR section 685.309 and 690.83(b)(2) requires City Colleges to notify the NSLDS within 30 days of a change in student status or include the change in status in a response to an enrollment reporting roster within 60 days of the student?s date of determination of withdrawal. Questioned Costs There were no questioned costs related to testing of enrollment reporting. Cause The financial aid office does not have an effective system in place to ensure all official student status changes are reported to the lender in a timely manner. Prevalence Frequent. Twenty out of sixty students selected for testing. Effect Failure to report status changes timely is noncompliance with Federal regulation and could result in loss of future funding. Recommendation We recommend City Colleges implement monitoring procedures which will promptly notify the financial aid office of any student status changes. A system of monitoring procedures and/or controls will ensure the College is reporting any status changes to the lender in a timely manner. City Colleges should implement a review process to ensure all status changes are addressed by the financial aid office. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-003 ? Short-Term Program Placement Rate Repeat Finding: Yes Federal Program Title ? U.S. Department of Education Student Financial Assistance Cluster Federal Direct Student Loans: 84.268 Federal Award Year 2021-2022 Condition The College cannot demonstrate compliance with the gainful employment placement rate calculation of 70% for the short-term program at a post-secondary vocational institution. Criteria For the Direct Loan Program, short-term eligible programs at a postsecondary vocational institution be between 300 - 599 clock hours. They must have been provided for at least one year and must have a substantiated completion and placement rate of at least 70 percent for the most recently completed award year. 34 CFR Section 668.8(f) and (g) requires the college to have documentation supporting its placement rates for each student showing that the student obtained gainful employment in the recognized occupation for which he or she was trained or in a related comparable recognized occupation. Questioned Costs There were no questioned costs with respect to this finding. Cause The financial aid office did not follow-up on the gainful employment of students. Prevalence Frequent. Five out of five students tested did not have sufficient support for the placement rate calculation. Effect Failure to calculate the placement data for each student is noncompliance with Federal regulation and could result in loss of future funding Recommendation We recommend City Colleges enhance their policies and procedures to ensure that calculation of placement rates is being maintained. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Repeat Finding: Partial Federal Program Title ? U.S. Department of Education COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF COVID-19: HEERF Student Portion: 84.425E COVID-19: HEERF Minority Serving Institutions (MSI): 84.425L Federal Award Year 2021-2022 Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. ? HEERF MSI Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. City Colleges did not publicly post certain required reports accurately. The following instance of noncompliance was identified: ? HEERF Student Portion: City Colleges posted a report on July 8, 2022 for Wilbur Wright for the period of April 1, 2022 ? June 30, 2022 which did not reconcile to the underlying expense detail as of the date of the report. The difference was $307,750. Criteria There are three components to reporting for HEERF: (1) public reporting on the (a)(1) Student Aid Portion; (2) public reporting on the (a)(1) Institutional Portion, (a)(2), and (a)(3) subprograms, as applicable; and (3) the annual report. The institutional quarterly portion reporting requirements involve publicly posting completed forms on City College?s website. The forms must be conspicuously posted on City College?s primary website on the same page the reports of City College?s activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. City Colleges must post this quarterly report form no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10) apart from the first report, which was due October 30, 2020, and the report covering the first quarter of 2021, which was due July 10, 2021. According to an electronic announcement (EA) by the Department of Education (ED) on May 6, 2020, ED required institutions that received a HEERF 18004(a)(1) Student Aid Portion Aid award to publicly post certain information on their website no later than 30 days after award, and update that information every 45 days thereafter by posting a new report. On August 31, 2020, ED revised the EA with 85 FR 53802, which decreased the frequency of subsequent reporting from every 45 days to every calendar quarter. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure the timely and accurate posting of reports. Questioned Costs There were no questioned costs with respect to this finding. Cause City Colleges did not have effective internal controls in place to ensure reports were posted accurately due to the newness of the program and how quickly it was rolled out. Prevalence Infrequent. 63 reports were required to be submitted in fiscal year 2022 relative to HEERF Student, Institutional, MSI and Annual reporting. 1 report was inaccurate and 14 did not have sufficient evidence of review. Effect The submission of inaccurate reports is noncompliance with the requirements of the grant award and could result in loss of funding or other penalties. Recommendation We recommend City Colleges implement internal controls to ensure reports are posted accurately. Views of responsible officials We agree with this finding. See corrective action plan.
Finding 2022-001 ? COVID-19 Education Stabilization Fund: Higher Education Emergency Relief Fund Reporting Repeat Finding: Partial Federal Program Title ? U.S. Department of Education COVID-19 Education Stabilization Fund Higher Education Emergency Relief Fund (HEERF COVID-19: HEERF Student Portion: 84.425E COVID-19: HEERF Minority Serving Institutions (MSI): 84.425L Federal Award Year 2021-2022 Condition City Colleges did not have sufficient documentation that internal controls were in place and operating effectively relative to the following areas: ? HEERF Student Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. ? HEERF MSI Reporting: City Colleges did not have sufficient supporting evidence that review controls were performed over the July 1, 2021 ? September 30, 2021 quarterly student report prior to submission. City Colleges did not publicly post certain required reports accurately. The following instance of noncompliance was identified: ? HEERF Student Portion: City Colleges posted a report on July 8, 2022 for Wilbur Wright for the period of April 1, 2022 ? June 30, 2022 which did not reconcile to the underlying expense detail as of the date of the report. The difference was $307,750. Criteria There are three components to reporting for HEERF: (1) public reporting on the (a)(1) Student Aid Portion; (2) public reporting on the (a)(1) Institutional Portion, (a)(2), and (a)(3) subprograms, as applicable; and (3) the annual report. The institutional quarterly portion reporting requirements involve publicly posting completed forms on City College?s website. The forms must be conspicuously posted on City College?s primary website on the same page the reports of City College?s activities as to the emergency financial aid grants to students (Student Aid Portion) are posted. A new, separate form must be posted covering aggregate amounts spent for HEERF I, HEERF II, and HEERF III funds each quarterly reporting period (September 30, December 31, March 31, June 30), concluding after an institution has expended and liquidated all (a)(1) Institutional Portion, (a)(2), and (a)(3) funds and checks the ?final report? box. City Colleges must post this quarterly report form no later than 10 days after the end of each calendar quarter (October 10, January 10, April 10, July 10) apart from the first report, which was due October 30, 2020, and the report covering the first quarter of 2021, which was due July 10, 2021. According to an electronic announcement (EA) by the Department of Education (ED) on May 6, 2020, ED required institutions that received a HEERF 18004(a)(1) Student Aid Portion Aid award to publicly post certain information on their website no later than 30 days after award, and update that information every 45 days thereafter by posting a new report. On August 31, 2020, ED revised the EA with 85 FR 53802, which decreased the frequency of subsequent reporting from every 45 days to every calendar quarter. 2 CFR Section 200.303 requires entities receiving Federal awards establish and maintain internal controls deigned to reasonably ensure compliance with Federal laws, regulations, and program compliance requirements. Effective internal controls should include procedures in place to ensure the timely and accurate posting of reports. Questioned Costs There were no questioned costs with respect to this finding. Cause City Colleges did not have effective internal controls in place to ensure reports were posted accurately due to the newness of the program and how quickly it was rolled out. Prevalence Infrequent. 63 reports were required to be submitted in fiscal year 2022 relative to HEERF Student, Institutional, MSI and Annual reporting. 1 report was inaccurate and 14 did not have sufficient evidence of review. Effect The submission of inaccurate reports is noncompliance with the requirements of the grant award and could result in loss of funding or other penalties. Recommendation We recommend City Colleges implement internal controls to ensure reports are posted accurately. Views of responsible officials We agree with this finding. See corrective action plan.