FAC Explorer

Finding 43872 (2022-003)

- Repeat Finding
Requirement
N
Questioned Costs
-
Year
2022
Accepted
2022-12-21
Audit: 51406
Organization: City Colleges of Chicago (IL)
Auditor: Rsm US LLP

AI Summary

  • Core Issue: The College failed to meet the required 70% placement rate for short-term programs, indicating noncompliance with federal regulations.
  • Impacted Requirements: Compliance with 34 CFR Section 668.8(f) and (g) is necessary for maintaining eligibility for federal student aid.
  • Recommended Follow-Up: Enhance policies and procedures to ensure accurate tracking and documentation of student employment outcomes.

Finding Text

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.

Corrective Action Plan

Finding 2022-003 ? Short-Term Program Placement Rate Condition The College cannot demonstrate compliance with the gainful employment placement rate of 70% calculation for the short-term program at a post-secondary vocational institution. Cause The financial aid office did not follow-up on the gainful employment of students. Currently the FAO does not manage the Short-Term Program Gainful Employment Requirement at the campus level. That process is managed by the campus. Corrective Action Taken or Planned City Colleges currently has two short term programs: ? Computer Numerical Machining (Daley College, Wright College) The Financial Aid Office will work with campus leadership to develop a gainful employment reporting process at Daley College and Wright College for short term programs. The reporting structure will include an outreach protocol to be completed and reported on currently enrolled during End of Term Processing for each semester. Contact Person: Associate Vice Chancellor, Financial Aid & Scholarships ? Richard Hayes Anticipated Completion Date: January 2023

Categories

Student Financial Aid Matching / Level of Effort / Earmarking

Other Findings in this Audit

  • 43870 2022-002
    Significant Deficiency Repeat
  • 43871 2022-002
    Significant Deficiency Repeat
  • 43873 2022-001
    Significant Deficiency Repeat
  • 43874 2022-001
    Significant Deficiency Repeat
  • 620312 2022-002
    Significant Deficiency Repeat
  • 620313 2022-002
    Significant Deficiency Repeat
  • 620314 2022-003
    - Repeat
  • 620315 2022-001
    Significant Deficiency Repeat
  • 620316 2022-001
    Significant Deficiency Repeat

Programs in Audit

ALN Program Name Expenditures
84.063 Federal Pell Grant Program $46.20M
84.268 Federal Direct Student Loans $2.89M
84.007 Federal Supplemental Educational Opportunity Grants $2.57M
84.002 Adult Education - Basic Grants to States $1.71M
84.033 Federal Work-Study Program $1.45M
84.048 Career and Technical Education -- Basic Grants to States $1.41M
93.600 Head Start $1.33M
84.382 Strengthening Minority-Serving Institutions $1.03M
16.525 Grants to Reduce Domestic Violence, Dating Violence, Sexual Assault, and Stalking on Campus $745,697
84.042 Trio_student Support Services $730,982
84.425 Education Stabilization Fund $406,142
93.732 Mental and Behavioral Health Education and Training Grants $401,092
84.044 Trio_talent Search $316,852
20.205 Highway Planning and Construction $272,863
84.066 Trio_educational Opportunity Centers $246,340
12.006 National Defense Education Program $242,354
21.019 Coronavirus Relief Fund $228,760
17.268 H-1b Job Training Grants $190,790
10.558 Child and Adult Care Food Program $157,602
17.285 Apprenticeship USA Grants $156,940
84.035 Education Research $97,709
47.076 Education and Human Resources $61,863
81.041 State Energy Program $20,798
84.031 Higher Education Institutional Aid $10,831
43.008 Office of Stem Engagement $2,600
45.129 Promotion of the Humanities_federal/state Partnership $455