Contracted District Audit Manual (CDAM)

Christine (Teena) Atalig, Fiscal SpecialistFiscal AccountabilityCalifornia Community Colleges Chancellor’s OfficeMay 5, 2017

CDAM Topics

Legal Requirements for the Annual Audit

Audit Finding TrendSSSP FindingsAudit Portal Project2016-17 CDAM

Legal Requirements

Education Code 84040(b) requires that the governing board of each community college district shall provide for an annual audit of all funds, books, and accounts of the district in accordance with regulations of the board of governors. The audit shall be made by certified public accountants licensed by the California Board of Accountancy.

Legal Requirements

Education Code 84040.6 states that on June 30 of each year the Board of Governors of the California Community Colleges shall report to the Joint Legislative Audit Committee on the 1) the number and nature of the audit exceptions and estimated amount of funds involved in the exceptions, (2) a list of districts which failed to file their audits pursuant to Section 84040, and (3) the actions taken by the department to eliminate audit exceptions and comply with management improvement recommendations.

Legal Requirements

California Code of Regulations (CCR),title 5, section 59100-59114:

59100 – General Authority of the Chancellor

59102 – Contracting for Annual Audits59104 – Review of Annual Audits59106 – Annual Audit Reports Due

Date

Legal Requirements

California Code of Regulations (CCR),

title 5, section 59100-59114 cont.:

59108 – Chancellor’s Review of Audit Citings

59110 – District’s Right to Respond59112 – Audit Resolution Actions59114 – Apportionment Adjustments

Audit Finding Trend

2015-16 2014-15 2013-14 2012-13 2011-12State 45 38 51 88 154Federal 23 21 26 25 39Financial 6 10 20 21 31Total 74 69 97 134 224

Student Success and Support Program Findings Furniture purchase

Purchased $600 of gift cards and $6,528 for t-shirts for students

Services provided to students were reported in the wrong term.

Student counts were incorrect

No documentation of student receiving services

Audit Finding Portal Design

Findings will be entered individually into the portal.

Require the number of questioned FTES or students served including the campus and/or center with the finding.

Identify questioned FTES for each campus and/or center by credit, non-credit, and non-credit CDCP.

CDAM 2016-17 Highlights

Student Equity Test added

Student Fees, Health Fees and Use of Health Fees removed

Requires a statement in the finding if FTES adjustments were submitted to the Chancellor’s Office.

Disabled Student Programs and Services. Beginning January 1, 2017, eligibility requirements changed from “enrolled” to “applied to or enrolled” in community college.

Prop 30 expired 1/1/17 - the extension is now Prop 55

CDAM 2016-17 Highlights

Proposition 39 Clean Energy Fund. Step .04(5) was added to test the serial numbers for large equipment items to verify the serial numbers on purchase documents for items such as boilers and HVAC systems match the serial numbers on the corresponding items in use at the district.

Open Courses. Step .04(iv) was added to verify that in-service training courses have met the apportionment attendance and study requirements to qualify for state apportionment funding related to in-service training courses in the areas of police, fire, corrections, and other criminal justice system occupations.

CDAM 2016-17 Highlights

Section 427 - Dual Enrollment of K-12 Students in Community College Credit Courses. On January 1, 2016, College and Career Access Pathways (CCAP) Partnership Agreements became a new option for dual enrollment that resulted from Assembly Bill 288 (Holden, 2015). In recognition of this new dual enrollment option, Legal Advisory 05-01 was replaced with Legal Opinion 16-02 along with the issuance of the related “AB 288 Dual Enrollment – March 2016 Partnership Agreement Guidelines for Apportionment Eligibility” document, which can be found beneath Legal Opinion 16-02 on the Chancellor’s Office’s “Office of the General Counsel” webpage. Note the 10 percent “special admit” FTES cap put into effect by AB 288 (Education Code section 76004(w)) is a statewide cap.

Student Equity Test

428 - Student Equity.01 BackgroundThe intent of student equity planning and funds are to ensure equal educational opportunities and to promote student success for all students, regardless of race, gender, disability, or economic circumstances. For the purposes of college equity planning and funding, we define equity as helping students achieve equal outcomes on equity success indicators as compared to either their own percentage in the community or college student body, or to other student groups. Each community college is required to maintain a student equity plan that includes:

Student Equity Test

428 - Student Equityo Campus-based research on equitable outcomes for

high-need student groups as defined in statute and regulation;

o Goals for access to, and completion of courses, basic skills improvement, transfer and degree and certificates for all students and for high-need students;

o Evidence-based activities to help students and the college meet these goals.

Student Equity Test

428 - Student EquityLegislative Purpose, Target Populations and Plan Requirements

The Chancellor’s Office, California Community Colleges, Board of Governors (BOG) adopted a student equity policy in 1992 enjoining all districts to develop, implement, and evaluate a student equity plan. In 1996, the BOG amended its policy to establish the adoption of a student equity plan as a minimum standard for receipt of all state funding. In 2002, the BOG implemented title 5 regulations (§54220 & 51026) requiring colleges to develop a student equity plan to ensure that groups historically underrepresented in higher education have an equal opportunity for access, successful course completion, English as a Second Language (ESL) and basic skills completion, and completion of degrees, certificates and transfer to baccalaureate degree granting institutions.

Student Equity Test

428 - Student EquityThe Governor and Legislature created additional requirements in June 2014 (Education Code sections 78220 through 78221) specifying additional student populations and providing further definitions for identifying existing populations that must be addressed in equity plans. At a minimum, colleges must address students in the following ethnic and racial categories, as defined by the US Census Bureau for the 2010 Census: American Indian or Alaska Native Asian Black or African American Hispanic or Latino Native Hawaiian or other Pacific Islander White Some other race More than one race

Student Equity Test

428 - Student EquityIn addition, plans must address students with the following characteristics: o Maleso Femaleso Current or former foster youtho Students with disabilitieso Low-income studentso Veterans

Colleges may also conduct research and develop goals or activities for any of the ethnic groups above, foster youth, disabled or low-income students, or veterans by gender, if data seems to indicate it would be beneficial to students.

Student Equity Test

428 - Student EquityCoordination with Other Equity Related Programs and Services Since 2012, Education Code section 78216 created by the Student Success Act [Senate Bill (SB) 1456] has required colleges to coordinate the development of Student Success and Support Program (SSSP) plans with their Student Equity Plans. This ensures colleges identify strategies to monitor and address equity issues in the delivery of SSSP core services and attempt to mitigate any resulting disproportionate impacts on student access and achievement. Therefore, student equity plans should clearly identify strategies and criteria associated with SSSP. The State Budget Act of 2014 also added new requirements related to coordinating with other programs. Colleges are now required to coordinate equity planning and activities with the following:

Student Equity Test

428 - Student Equity1. Disabled Students Programs and Services (DSPS)2. Extended Opportunity Programs and Services (EOPS)3. Math, Engineering, Science Achievement (MESA), Puente

and Middle College High School Programs 4. Student Success and Support Program (SSSP) 5. Programs for foster youth6. Programs for veterans7. California Work Opportunity and Responsibility to Kids

(CalWORKs)8. Student Financial Aid Administration, Board Financial

Assistance Program (BFAP)9. Basic Skills Initiative (BSI)

Student Equity Test

428 - Student EquityCriteria

o Education Code sections 78216, & 78220 - 78221

o California Code of Regulations, title 5, sections 51026, 54220, 59114, & 59116

o Student Equity Expenditure Guidelines, August 2015

o Student Equity Plan Template, including success indicator definitions and Budget template

o 9/28/2016 memo from interim Chancellor Skinner

Student Equity Test 428 - Student EquityCompliance RequirementAuditors may test all criteria above. Student Equity Plans identify studentpopulations disproportionately impacted according to the college research in the plan, and who are in need of extra support should be the primary recipients of services. Only allowable expenditures are charged to Student Equity funds as described in the Student Equity Expenditure Guidelines unless the Chancellor’s Office, California Community Colleges granted an explicit exception on a case-by-case basis. No local funding match is required for student equity funds. Match requirements for any other State of California categorically funded program that includes a matching fund requirement cannot use Student equity funds.

Student Equity Test 428 - Student EquitySuggested Audit Procedures1. Submission of Student Equity plans are required every

three years. Verify the college submitted a signed Student Equity Plan and budget for the Chancellor’s Office, California Community Colleges approval for the most recent year it was required. Verify the local board of trustees approved the college Student Equity Plan.

2. Verify that the college submitted other program-required forms to the Chancellor’s Office, California Community Colleges (annual mid-year reports, and annual year-end expenditure reports).

Student Equity Test 428 - Student EquitySuggested Audit Procedures3. Test expenditures of Student Equity Plan funding for

compliance with the Student Equity Expenditure Guidelines on the Chancellor’s Office, California Community Colleges website, and with the other criteria listed above. The annual Year-End reports or other local documentation held at the college may document expenditures.

QUESTIONS?Fiscal Accountability Contacts:

Christine (Teena) Atalig Tracy Britten916-327-5772 916-323-6899catalig@cccco.edu tbritten@cccco.edu

http://extranet.cccco.edu/Divisions/FinanceFacilities/FiscalStandardsandAccountibilityUnit/FiscalAccountability/ContractedDistrictAuditManual.aspx#CDAM_for_Fiscal_Year_2016-17