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SAN LUIS OBISPO COUNTY
COMMUNITY COLLEGE DISTRICT
Audit Report
ENROLLMENT FEE COLLECTIONS
AND WAIVERS PROGRAM
Education Code Section 76300 and California Code of
Regulations, Title 5, Sections 58501-58503, 58611-58613,
58620, and 58630
July 1, 1998, through June 30, 2010
JOHN CHIANG California State Controller
May 2013
JOHN CHIANG California State Controller
May 3, 2013
Patrick Mullen, President
Board of Trustees
San Luis Obispo County Community College District
P.O. Box 8106
San Luis Obispo, CA 93403-8106
Dear Mr. Mullen:
The State Controller’s Office audited the costs claimed by the San Luis Obispo County
Community College District for the legislatively mandated Enrollment Fee Collections and
Waivers Program (Education Code section 76300 and Title 5, California Code of Regulations,
sections 58501-58503, 58611-58613, 58620, and 58630) for the period of July 1, 1998, through
June 30, 2010.
The district claimed $3,944,923 ($3,954,923 less a $10,000 penalty for filing a late claim) for the
mandated program. Our audit found that $820,647 is allowable and $3,124,276 is unallowable.
The costs are unallowable because the district claimed estimated costs that were not supported by
source documentation, claimed ineligible time, misstated indirect cost rates, and misstated
eligible offsetting revenues.
If you disagree with the audit findings, you may file an Incorrect Reduction Claim (IRC) with
the Commission on State Mandates (CSM). The IRC must be filed within three years following
the date that we notify you of a claim reduction. You may obtain IRC information at the CSM’s
website at www.csm.ca.gov/docs/IRCForm.pdf.
If you have any questions, please contact Jim L. Spano, Chief, Mandated Cost Audits Bureau, at
(916) 323-5849.
Sincerely,
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
JVB/kw
http://www.csm.ca.gov/docs/IRCForm.pdf
Patrick Mullen, President -2- May 3, 2013
cc: Gilbert Stork, Superintendent/President
President Office
San Luis Obispo County Community College District
Toni Sommer, Vice President
Administrative Services
San Luis Obispo County Community College District
Chris Green, Director of Fiscal Services
San Luis Obispo County Community College District
Nohemy Ornelas, Dean of Student Services
San Luis Obispo County Community College District
Christine Atalig, Specialist
College Finance and Facilities Planning
California Community Colleges Chancellor’s Office
Ed Hanson, Principal Program Budget Analyst
Education Systems Unit
California Department of Finance
Mario Rodriguez, Finance Budget Analyst
Education Systems Unit
California Department of Finance
Jay Lal, Manager Division of Accounting and Reporting
State Controller’s Office
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
Contents
Audit Report
Summary ............................................................................................................................ 1
Background ........................................................................................................................ 1
Objective, Scope, and Methodology ................................................................................. 2
Conclusion .......................................................................................................................... 3
Views of Responsible Official ........................................................................................... 3
Restricted Use .................................................................................................................... 3
Schedule 1—Summary of Program Costs ........................................................................... 4
Findings and Recommendations ........................................................................................... 14
Attachment—District’s Response to Draft Audit Report
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-1-
Audit Report
The State Controller’s Office (SCO) audited the costs claimed by the San
Luis Obispo County Community College District for the legislatively
mandated Enrollment Fee Collections and Waivers Program (Education
Code section 76300 and Title 5, California Code of Regulations, sections
58501-58503, 58611-58613, 58620, and 58630) for the period of July 1,
1998, through June 30, 2010.
The district claimed $3,944,923 ($3,954,923 less a $10,000 penalty for
filing a late claim) for the mandated program. Our audit found that
$820,647 is allowable and $3,124,276 is unallowable. The costs are
unallowable because the district claimed estimated costs that were not
supported by source documentation, claimed ineligible time, misstated
indirect cost rates, and misstated eligible offsetting revenues.
Education Code section 76300 and Title 5, California Code of
Regulations, sections 58501-58503, 58611-58613, 58620, and 58630
authorize community college districts to calculate and collect student
enrollment fees and to waive student fees in certain instances. The codes
also direct community college districts to report the number of, and
amounts provided for Board of Governors Grant (BOGG) and to adopt
procedures that will document all financial assistance provided on behalf
of students pursuant to Chapter 9 of Title 5, California Code of
Regulations.
The sections were added and/or amended by:
Chapter 1, Statutes of 1984;
Chapter 274 and 1401, Statutes of 1984;
Chapter 920 and 1454, Statutes of 1985;
Chapter 46 and 395, Statutes of 1986;
Chapter 1118, Statutes of 1987;
Chapter 136, Statutes of 1989;
Chapter 114, Statutes of 1991;
Chapter 703, Statutes of 1992;
Chapter 8, 66, 67, and 1124, Statutes of 1993;
Chapter 153 and 422, Statutes of 1994;
Chapter 308, Statutes of 1995;
Chapter 63, Statutes of 1996; and
Chapter 72, Statutes of 1999.
On April 24, 2003, the Commission on State Mandates (CSM) adopted
the Statement of Decision for the Enrollment Fee Collection and Waivers
Program. The CSM found that the test claim legislation constitutes a new
program or higher level of service and imposes a reimbursable state-
mandated program on community college districts within the meaning of
Article XIII B, section 6 of the California Constitution and Government
Code section 17514.
Summary
Background
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-2-
The CSM found that the following activities are reimbursable:
Calculating and collecting the student enrollment fee for each student enrolled, except for nonresidents and special part-time students, as
cited in Education Code section 76300, subdivision (f).
Waiving student fees in accordance with the groups listed in Education Code section 76300, subdivisions (g) and (h).
Waiving fees for students who apply for and are eligible for BOGG fee waivers.
Reporting to the California Community Colleges Chancellor the number of and amounts provided for BOGG waivers.
Adopting procedures that will document all financial assistance provided on behalf of students pursuant to Chapter 9 of Title 5 of the
California Code of Regulations; and including in the procedures the
rules for retention of support documentation which will enable an
independent determination regarding accuracy of the district’s
certification of need for financial assistance.
The program’s parameters and guidelines establish the state mandate and
define reimbursement criteria. The CSM adopted the parameters and
guidelines on January 26, 2006. In compliance with Government Code
section 17558, the SCO issues claiming instructions to assist local
agencies and school districts in claiming mandated program reimbursable
costs.
We conducted the audit to determine whether costs claimed represent
increased costs resulting from the Enrollment Fee Collections and
Waivers Program for the period of July 1, 1998, through June 30, 2010.
Our audit scope included, but was not limited to, determining whether
costs claimed were supported by appropriate source documents, were not
funded by another source, and were not unreasonable and/or excessive.
We conducted this performance audit under the authority of Government
Code sections 12410, 17558.5, and 17561. We did not audit the district’s
financial statements. We conducted the audit in accordance with
generally accepted government auditing standards. Those standards
require that we plan and perform the audit to obtain sufficient,
appropriate evidence to provide a reasonable basis for our findings and
conclusions based on our audit objectives. We believe that the evidence
obtained provides a reasonable basis for our findings and conclusions
based on our audit objectives.
We limited our review of the district’s internal controls to gaining an
understanding of the transaction flow and claim preparation process as
necessary to develop appropriate auditing procedures.
Objective, Scope,
and Methodology
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-3-
Our audit found instances of noncompliance with the requirements
outlined above. These instances are described in the accompanying
Summary of Program Costs (Schedule 1) and in the Findings and
Recommendations section of this report.
For the audit period, the San Luis Obispo County Community College
District claimed $3,944,923 ($3,954,923 less a $10,000 penalty for filing
a late claim) for costs of the Enrollment Fee Collections and Waivers
Program. Our audit found that $820,647 is allowable and $3,124,276 is
unallowable.
For the FY 1998-99, the State paid the district $45,634. Our audit
disclosed that $66,385 is allowable. The State will pay allowable costs
that exceed the amount paid, totaling $20,751, contingent upon available
appropriations.
For the FY 1999-2000 through FY 2007-08, the State made no payment
to the district. Our audit disclosed that $730,188 is allowable. The State
will pay allowable costs claimed, contingent upon available
appropriations.
For the FY 2008-09, the State paid the district $20,419. Our audit
disclosed that $24,074 is allowable. The State will pay allowable costs
claimed that exceed the amount paid, totaling $3,655, contingent upon
available appropriations.
For the FY 2009-10 claim, the State paid the district $18,345. Our audit
found that $16,743 is allowable. The State will offset $1,602 from other
mandated program payments due to district. Alternatively, the district
may remit this amount to the State.
We issued a draft audit report on March 29, 2013. Toni Sommer, Vice
President, Administrative Services, responded by letter dated April 17,
2013 (Attachment), agreeing with the audit results. This final audit report
includes the district’s response.
This report is solely for the information and use of the San Luis Obispo
County Community College District, the California Community Colleges
Chancellor’s Office, the California Department of Finance, and the SCO;
it is not intended to be and should not be used by anyone other than these
specified parties. This restriction is not intended to limit distribution of
this report, which is a matter of public record.
Original signed by
JEFFREY V. BROWNFIELD, CPA
Chief, Division of Audits
May 3, 2013
Views of
Responsible
Official
Conclusion
Restricted Use
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-4-
Schedule 1—
Summary of Program Costs
July 1, 1998, through June 30, 2010
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
July 1, 1998, through June 30, 1999
Enrollment fee collection:
Direct costs - salaries and benefits:
Prepare policies and procedures -$ 435$ 435$ Finding 1
Staff training 17,017 3,753 (13,264) Finding 2
Calculating and collecting enrollment fees 372,442 87,277 (285,165) Finding 3
Total direct costs 389,459 91,465 (297,994)
Indirect costs 27,262 6,403 (20,859) Finding 8
Total direct and indirect costs 416,721 97,868 (318,853)
Less offsetting savings and reimbursements:
Enrollment fee collection (13,454) (31,483) (18,029) Finding 9
Total program costs 403,267$ 66,385 (336,882)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 66,385$
July 1, 1999, through June 30, 2000
Enrollment fee collection:
Direct costs - salaries and benefits:
Prepare policies and procedures -$ 435$ 435$ Finding 1
Staff training - 1,315 1,315 Finding 2
Calculating and collecting enrollment fees 403,526 92,919 (310,607) Finding 3
Total direct costs 403,526 94,669 (308,857)
Indirect costs 28,246 6,627 (21,619) Finding 8
Total direct and indirect costs 431,772 101,296 (330,476)
Less offsetting savings and reimbursements:
Enrollment fee collection (23,102) (29,381) (6,279) Finding 9
Total enrollment fee collection 408,670 71,915 (336,755)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 493$ 493$ -$
Staff training 552 653 101 Finding 4
Adopt procedures, record and maintain records 53,371 1,188 (52,183) Finding 5
Waiving student fees 40,004 14,519 (25,485) Finding 6
Reporting BOGG fee waiver data to CCCCO 5,962 5,071 (891) Finding 7
Total direct costs 100,382 21,924 (78,458)
Cost Elements
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-5-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 1999, through June 30, 2000 (Continued)
Indirect costs 7,027 1,535 (5,492) Finding 8
Total direct and indirect costs 107,409 23,459 (83,950)
Less offsetting savings and reimbursements:
Enrollment fee waivers (55,652) (63,252) (7,600) Finding 9
Adjustment for unused portion of offsets2
- 39,793 39,793 Finding 9
Total enrollment fee waivers 51,757 - (51,757)
Total program costs 460,427$ 71,915 (388,512)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 71,915$
July 1, 2000, through June 30, 2001
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training -$ 1,315$ 1,315$ Finding 2
Calculating and collecting enrollment fees 329,574 95,389 (234,185) Finding 3
Total direct costs 329,574 96,704 (232,870)
Indirect costs 23,070 6,769 (16,301) Finding 8
Total direct and indirect costs 352,644 103,473 (249,171)
Less offsetting savings and reimbursements:
Enrollment fee collection (15,333) (30,855) (15,522) Finding 9
Total enrollment fee collection 337,311 72,618 (264,693)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 516$ 516$ -$
Staff training 253 342 89 Finding 4
Adopt procedures, record and maintain records 61,505 1,188 (60,317) Finding 5
Waiving student fees 96,747 14,635 (82,112) Finding 6
Reporting BOGG fee waiver data to CCCCO 6,260 5,071 (1,189) Finding 7
Total direct costs 165,281 21,752 (143,529)
Indirect costs 11,570 1,523 (10,047) Finding 8
Total direct and indirect costs 176,851 23,275 (153,576)
Less offsetting savings and reimbursements:
Enrollment fee waivers (63,421) (60,921) 2,500 Finding 9
Adjustment for unused portion of offsets2
- 37,646 37,646 Finding 9
Total enrollment fee waivers 113,430 - (113,430)
Total program costs 450,741$ 72,618 (378,123)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 72,618$
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-6-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2001, through June 30, 2002
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training -$ 1,315$ 1,315$ Finding 2
Calculating and collecting enrollment fees 286,840 105,327 (181,513) Finding 3
Total direct costs 286,840 106,642 (180,198)
Indirect costs 20,079 7,465 (12,614) Finding 8
Total direct and indirect costs 306,919 114,107 (192,812)
Less offsetting savings and reimbursements:
Enrollment fee collection (14,243) (31,274) (17,031) Finding 9
Total enrollment fee collection 292,676 82,833 (209,843)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 527$ 527$ -$
Adopt procedures, record and maintain records 61,148 1,298 (59,850) Finding 5
Waiving student fees 85,362 16,228 (69,134) Finding 6
Reporting BOGG fee waiver data to CCCCO 6,433 5,673 (760) Finding 7
Total direct costs 153,470 23,726 (129,744)
Indirect costs 10,743 1,661 (9,082) Finding 8
Total direct and indirect costs 164,213 25,387 (138,826)
Less offsetting savings and reimbursements:
Enrollment fee waivers (58,914) (59,741) (827) Finding 9
Adjustment for unused portion of offsets2
- 34,354 34,354 Finding 9
Total enrollment fee waivers 105,299 - (105,299)
Total program costs 397,975$ 82,833 (315,142)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 82,833$
July 1, 2002, through June 30, 2003
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training -$ 1,319$ 1,319$ Finding 2
Calculating and collecting enrollment fees 273,774 101,996 (171,778) Finding 3
Total direct costs 273,774 103,315 (170,459)
Indirect costs 19,164 7,232 (11,932) Finding 8
Total direct and indirect costs 292,938 110,547 (182,391)
Less offsetting savings and reimbursements:
Enrollment fee collection (15,438) (32,072) (16,634) Finding 9
Total enrollment fee collection 277,500 78,475 (199,025)
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-7-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2002, through June 30, 2003 (Continued)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 549$ 549$ -$
Adopt procedures, record and maintain records 63,148 1,344 (61,804) Finding 5
Waiving student fees 86,083 23,994 (62,089) Finding 6
Reporting BOGG fee waiver data to CCCCO 6,566 5,730 (836) Finding 7
Total direct costs 156,346 31,617 (124,729)
Indirect costs 10,944 2,213 (8,731) Finding 8
Total direct and indirect costs 167,290 33,830 (133,460)
Less offsetting savings and reimbursements:
Enrollment fee waivers (63,858) (70,637) (6,779) Finding 9
Adjustment for unused portion of offsets2
- 36,807 36,807 Finding 9
Total enrollment fee waivers 103,432 - (103,432)
Total program costs 380,932$ 78,475 (302,457)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 78,475$
July 1, 2003, through June 30, 2004
Enrollment fee collection:
Direct costs - salaries and benefits
Prepare policies and procedures -$ 463$ 463$ Finding 1
Staff training - 1,324 1,324 Finding 2
Calculating and collecting enrollment fees 212,393 103,154 (109,239) Finding 3
Total direct costs 212,393 104,941 (107,452)
Indirect costs 14,868 7,346 (7,522) Finding 8
Total direct and indirect costs 227,261 112,287 (114,974)
Less offsetting savings and reimbursements:
Enrollment fee collection (24,480) (50,011) (25,531) Finding 9
Total enrollment fee collection 202,781 62,276 (140,505)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 554$ 554$ -$
Staff training 133 273 140 Finding 4
Adopt procedures, record and maintain records 63,800 4,045 (59,755) Finding 5
Waiving student fees 66,853 24,715 (42,138) Finding 6
Reporting BOGG fee waiver data to CCCCO 7,221 5,788 (1,433) Finding 7
Total direct costs 138,561 35,375 (103,186)
Indirect costs 9,699 2,476 (7,223) Finding 8
Total direct and indirect costs 148,260 37,851 (110,409)
Less offsetting savings and reimbursements:
Enrollment fee waivers (61,881) (80,771) (18,890) Finding 9
Adjustment for unused portion of offsets2
- 42,920 42,920 Finding 9
Total enrollment fee waivers 86,379 - (86,379)
Total program costs 289,160$ 62,276 (226,884)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 62,276$
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-8-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2004, through June 30, 2005
Enrollment fee collection:
Direct costs - salaries and benefits
Prepare policies and procedures -$ 476$ 476$ Finding 1
Staff training - 1,350 1,350 Finding 2
Calculating and collecting enrollment fees 212,273 105,609 (106,664) Finding 3
Total direct costs 212,273 107,435 (104,838)
Indirect costs 65,677 39,063 (26,614) Finding 8
Total direct and indirect costs 277,950 146,498 (131,452)
Less offsetting savings and reimbursements:
Enrollment fee collection (38,237) (70,169) (31,932) Finding 9181
Total enrollment fee collection 239,713 76,329 (163,384)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 568$ 568$ -$
Staff training 681 820 139 Finding 4
Adopt procedures, record and maintain records 112,862 1,434 (111,428) Finding 5
Waiving student fees 98,345 27,423 (70,922) Finding 6
Reporting BOGG fee waiver data to CCCCO 7,407 5,965 (1,442) Finding 7
Total direct costs 219,863 36,210 (183,653)
Indirect costs 68,026 13,166 (54,860) Finding 8
Total direct and indirect costs 287,889 49,376 (238,513)
Less offsetting savings and reimbursements:
Enrollment fee waivers (66,914) (107,178) (40,264) Finding 9
Adjustment for unused portion of offsets2
- 57,802 57,802 Finding 9
Total enrollment fee waivers 220,975 - (220,975)
Total program costs 460,688$ 76,329 (384,359)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 76,329$
July 1, 2005, through June 30, 2006
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training -$ 1,362$ 1,362$ Finding 2
Calculating and collecting enrollment fees 146,098 104,636 (41,462) Finding 3
Total direct costs 146,098 105,998 (40,100)
Indirect costs 45,758 39,368 (6,390) Finding 8
Total direct and indirect costs 191,856 145,366 (46,490)
Less offsetting savings and reimbursements:
Enrollment fee collection (38,953) (76,529) (37,576) Finding 9
Total enrollment fee collection 152,903 68,837 (84,066)
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-9-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2005, through June 30, 2006 (Continued)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 585$ 585$ -$
Staff training 439 578 139 Finding 4
Adopt procedures, record and maintain records 122,025 4,215 (117,810) Finding 5
Waiving student fees 120,206 27,152 (93,054) Finding 6
Reporting BOGG fee waiver data to CCCCO 7,630 5,965 (1,665) Finding 7
Total direct costs 250,885 38,495 (212,390)
Indirect costs 78,577 14,297 (64,280) Finding 8
Total direct and indirect costs 329,462 52,792 (276,670)
Less offsetting savings and reimbursements:
Enrollment fee waivers (68,169) (98,383) (30,214) Finding 9
Adjustment for unused portion of offsets2
- 45,591 45,591 Finding 9
Total enrollment fee waivers 261,293 - (261,293)
Total costs 414,196 68,837 (345,359)
Less late filing penalty (10,000) (6,884) 3,116
Total program costs 404,196$ 61,953 (345,359)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 61,953$
July 1, 2006, through June 30, 2007
Enrollment fee collection:
Direct costs - salaries and benefits
Prepare policies and procedures -$ 496$ 496$ Finding 1
Staff training - 1,389 1,389 Finding 2
Calculating and collecting enrollment fees 148,247 107,126 (41,121) Finding 3
Total direct costs 148,247 109,011 (39,236)
Indirect costs 52,954 44,934 (8,020) Finding 8
Total direct and indirect costs 201,201 153,945 (47,256)
Less offsetting savings and reimbursements:
Enrollment fee collection (66,305) (67,438) (1,133) Finding 9
Total enrollment fee collection 134,896 86,507 (48,389)
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-10-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2006, through June 30, 2007 (Continued)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 588$ 588$ -$
Staff training 441 - (441) Finding 4
Adopt procedures, record and maintain records 71,783 1,434 (70,349) Finding 5
Waiving student fees 80,525 27,505 (53,020) Finding 6
Reporting BOGG fee waiver data to CCCCO 7,667 5,965 (1,702) Finding 7
Total direct costs 161,004 35,492 (125,512)
Indirect costs 57,511 14,630 (42,881) Finding 8
Total direct and indirect costs 218,515 50,122 (168,393)
Less offsetting savings and reimbursements:
Enrollment fee waivers (63,363) (104,471) (41,108) Finding 9
Adjustment for unused portion of offsets2
- 54,349 54,349 Finding 9
Total enrollment fee waivers 155,152 - (155,152)
Total program costs 290,048$ 86,507 (203,541)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 86,507$
July 1, 2007, through June 30, 2008
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training -$ 1,499$ 1,499$ Finding 2
Calculating and collecting enrollment fees 92,254 123,773 31,519 Finding 3
Total direct costs 92,254 125,272 33,018
Indirect costs 32,990 57,074 24,084 Finding 8
Total direct and indirect costs 125,244 182,346 57,102
Less offsetting savings and reimbursements:
Enrollment fee collection (31,468) (61,807) (30,339) Finding 9
Total enrollment fee collection 93,776 120,539 26,763
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 596$ 596$ -$
Staff training 447 - (447) Finding 4
Adopt procedures, record and maintain records 53,935 1,570 (52,365) Finding 5
Waiving student fees 61,270 29,757 (31,513) Finding 6
Reporting BOGG fee waiver data to CCCCO 5,111 6,534 1,423 Finding 7
Total direct costs 121,359 38,457 (82,902)
Indirect costs 43,398 17,521 (25,877) Finding 8
Total direct and indirect costs 164,757 55,978 (108,779)
Less offsetting savings and reimbursements:
Enrollment fee waivers (69,882) (97,592) (27,710) Finding 9
Adjustment for unused portion of offsets2
- 41,614 41,614 Finding 9
Total enrollment fee waivers 94,875 - (94,875)
Total program costs 188,651$ 120,539 (68,112)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 120,539$
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
-11-
Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2008, through June 30, 2009
Enrollment fee collection:
Direct costs - salaries and benefits
Staff training 4,827$ 1,499$ (3,328)$ Finding 2
Calculating and collecting enrollment fees 72,359 58,086 (14,273) Finding 3
Total direct costs 77,186 59,585 (17,601)
Indirect costs 31,283 25,896 (5,387) Finding 8
Total direct and indirect costs 108,469 85,481 (22,988)
Less offsetting savings and reimbursements:
Enrollment fee collection (32,018) (61,407) (29,389) Finding 9
Total enrollment fee collection 76,451 24,074 (52,377)
Enrollment fee waivers:
Direct costs - salaries and benefits
Staff training 426$ -$ (426)$ Finding 4
Adopt procedures, record and maintain records 39,685 1,570 (38,115) Finding 5
Waiving student fees 46,681 31,637 (15,044) Finding 6
Reporting BOGG fee waiver data to CCCCO 3,704 6,534 2,830 Finding 7
Total direct costs 90,496 39,741 (50,755)
Indirect costs 36,678 17,271 (19,407) Finding 8
Total direct and indirect costs 127,174 57,012 (70,162)
Less offsetting savings and reimbursements:
Enrollment fee waivers (70,989) (97,973) (26,984) Finding 9
Adjustment for unused portion of offsets2
- 40,961 40,961 Finding 9
Total enrollment fee waivers 56,185 - (56,185)
Total program costs 132,636$ 24,074 (108,562)$
Less amount paid by the State (14,403)
Allowable costs claimed in excess of (less than) amount paid 9,671$
July 1, 2009, through June 30, 2010
Enrollment fee collection:
Direct costs - salaries and benefits
Prepare policies and procedures -$ 334$ 334$ Finding 1
Staff training 3,876 1,499 (2,377) Finding 2
Calculating and collecting enrollment fees 72,359 58,349 (14,010) Finding 3
Total direct costs 76,235 60,182 (16,053)
Indirect costs 29,770 29,369 (401) Finding 8
Total direct and indirect costs 106,005 89,551 (16,454)
Less offsetting savings and reimbursements:
Enrollment fee collection (63,171) (72,808) (9,637) Finding 9
Total enrollment fee collection 42,834 16,743 (26,091)
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
July 1, 2009, through June 30, 2010 (Continued)
Enrollment fee waivers:
Direct costs - salaries and benefits
Adopt procedures, record and maintain records 39,685$ 4,554$ (35,131)$ Finding 5
Waiving student fees 45,319 34,514 (10,805) Finding 6
Reporting BOGG fee waiver data to CCCCO 3,704 6,534 2,830 Finding 7
Total direct costs 88,708 45,602 (43,106)
Indirect costs 34,640 22,254 (12,386) Finding 8
Total direct and indirect costs 123,348 67,856 (55,492)
Less offsetting savings and reimbursements:
Enrollment fee waivers (79,980) (105,071) (25,091) Finding 9
Adjustment for unused portion of offsets2
- 37,215 37,215 Finding 9
Total enrollment fee waivers 43,368 - (43,368)
Total program costs 86,202$ 16,743 (69,459)$
Less amount paid by the State -
Allowable costs claimed in excess of (less than) amount paid 16,743$
Summary: July 1, 1998, through June 30, 2010
Enrollment fee collection:
Direct costs - salaries and benefits
Prepare policies and procedures -$ 2,639$ 2,639$
Staff training 25,720 18,939 (6,781)
Calculating and collecting enrollment fees 2,622,139 1,143,641 (1,478,498)
Total direct costs 2,647,859 1,165,219 (1,482,640)
Indirect costs 391,121 277,546 (113,575)
Total direct and indirect costs 3,038,980 1,442,765 (1,596,215)
Less offsetting savings and reimbursements:
Enrollment fee collection (376,202) (615,234) (239,032)
Total enrollment collection 2,662,778 827,531 (1,835,247)
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Schedule 1 (continued)
Actual Costs Allowable Audit
Claimed Per Audit Adjustment Reference1
Cost Elements
Summary: July 1, 1998, through June 30, 2010 (Continued)
Enrollment fee waivers:
Direct costs - salaries and benefits
Prepare policies and procedures 4,976$ 4,976$ -$
Staff training 3,372 2,666 (706)
Adopt procedures, record and maintain records 742,947 23,840 (719,107)
Waiving student fees 827,395 272,079 (555,316)
Reporting BOGG fee waiver data to CCCCO 67,665 64,830 (2,835)
Total direct costs 1,646,355 368,391 (1,277,964)
Indirect costs 368,813 108,547 (260,266)
Total direct and indirect costs 2,015,168 476,938 (1,538,230)
Less offsetting savings and reimbursements:
Enrollment fee waivers (723,023) (945,990) (222,967)
Adjustment for unused portion of offsets2
- 469,052 469,052
Total enrollment fee waivers 1,292,145 - (1,292,145)
Total costs 3,954,923 827,531 (3,127,392)
Less late filing penalty (10,000) (6,884) 3,116
Total program costs 3,944,923$ 820,647 (3,124,276)$
Less amount paid by the State (14,403)
Allowable costs claimed in excess of (less than) amount paid 806,244$
_________________________
1 See the Findings and Recommendations section.
2 Offsetting savings and reimbursements are limited to total allowable direct and indirect costs and are calculated separately for enrollment fee collection and enrollment fee waivers.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Findings and Recommendations
The district did not claim any costs during the audit period for the one-
time activity of preparing district policies and procedures for the
collection of enrollment fees. We determined that salaries and benefits
costs totaling $2,639 are allowable.
We worked with district staff in the Cashier’s Office to determine the
tasks involved during the audit period to set up and test enrollment fee
costs in the district’s computer systems, to update links within the
district’s webpage, and the time required to complete these tasks. We
also obtained information from the California Community Colleges
Chancellor’s Office (CCCCO) confirming that enrollment fees increased
in fiscal year (FY) 1998-99, FY 1999-2000, FY 2003-04, FY 2004-05,
FY 2006-07, and FY 2009-10. Using the information provided by the
district, we determined allowable costs for these years.
The following table summarizes the claimed, allowable, and audit
adjustment amounts per fiscal year:
Amount Amount Audit
Fiscal Year Claimed Allowable Adjustment
Salaries and Benefits:
1998-99 -$ 435$ 435$
1999-2000 - 435 435
2003-04 - 463 463
2004-05 - 476 476
2006-07 - 496 496
2009-10 - 334 334
Total, salaries and benefits -$ 2,639$ 2,639$
The program’s parameters and guidelines (section IV–Reimbursable
Activities) state:
To be eligible for mandated cost reimbursement, only actual costs may
be claimed. Actual costs are those costs actually incurred to implement
the mandated activities. Actual costs must be traceable and supported
by source documents that show the validity of such costs, when they
were incurred, and their relationship to the reimbursable activities. A
source document is a document created at or near the same time the
actual cost was incurred for the event or activity in question. Source
documents may include, but are not limited to, employee time records,
time logs, sign-in sheets, invoices, and receipts.
The parameters and guidelines also state that salaries and benefits are
reimbursable if claimants report the name, job classification, and
productive hourly rate of each employee implementing the reimbursable
activities, and provide a description of the specific reimbursable
activities performed and the hours devoted to these activities.
FINDING 1—
Enrollment Fee
Collection: Preparing
Policies and
Procedures Cost
Component –
understated one-time
costs
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The parameters and guidelines (section IV.A.1.a – Reimbursable
Activities, Enrollment Fee Collection – One-Time Activities – Policies
and Procedures) state that the preparation of policies and procedures is
reimbursable as a one-time activity for collection of enrollment fees. The
CSM Final Staff Analysis for the Proposed Parameters and Guidelines
dated January 13, 2006, for the one-time activity of adopting policies and
procedures, states “. . . staff finds that updates to the policies and
procedures would be subject to change in the community college
district’s policy rather than state law, and would not be reimbursable.”
Recommendation
We recommend that the district ensure that claimed costs include only
eligible costs, are based on actual costs, and are properly supported.
District’s Response
The district concurs with the finding and recommendation.
The district claimed $25,720 in salaries and benefits during the audit
period for the activity of training district staff who implement the
program on the procedures for the collection of enrollment fees (one time
per employee). We determined that $18,939 is allowable and $6,781 is
unallowable. The unallowable costs occurred because the district claimed
estimated costs.
District staff in the Cashier’s Office provided us a walk-through related
to training that employees received during the audit period to perform the
reimbursable activities, the number of employees that received training,
the Student Account Specialist that provided the training, and the number
of hours provided for each employee.
The following table summarizes the claimed, allowable, and audit
adjustment amounts per fiscal year:
Amount Amount Audit
Fiscal Year Claimed Allowable Adjustment
Salaries and benefits:
1998-99 17,017$ 3,753$ (13,264)$
1999-2000 - 1,315 1,315
2000-01 - 1,315 1,315
2001-02 - 1,315 1,315
2002-03 - 1,319 1,319
2003-04 - 1,324 1,324
2004-05 - 1,350 1,350
2005-06 - 1,362 1,362
2006-07 - 1,389 1,389
2007-08 - 1,499 1,499
2008-09 4,827 1,499 (3,328)
2009-10 3,876 1,499 (2,377)
Total, salaries and benefits 25,720$ 18,939$ (6,781)$
FINDING 2—
Enrollment Fee
Collection: Staff
Training Cost
Component –
unallowable one-time
costs
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The district claimed costs for district staff for the one-time reimbursable
activity of training district staff (one-time per employee) on enrollment
fee collection procedures as follows:
FY 1998-99
24 hours for the Student Account Specialist classification
216 hours for the Account Clerk II classification
24 hours for the Admissions and Records Specialist classification
24 hours for the Admissions and Records Technician classification
24 hours for the North County Coordinator classification
1,152 hours for Regular Aides classification
FY 2008-09 and FY 2009-10
114 hours for the Accounting Technician II classification
59 hours for the Business Office Assistant classification
82 hours for the Business Office Supervisor classification
Based on interviews and observations that we conducted at the Cashier’s
Office and the training manual the district provided, we determined the
following classification titles of district staff and allowable hours for the
one-time reimbursable activity of training district staff (one-time per
employee) on enrollment fee collection procedures:
FY 1998-99
20 hours for the Account Clerk II classification
40 hours for the Account Technician classification
20 hours for the Admissions and Records Specialist classification
20 hours for the Admissions and Records Technician classification
100 hours for the Hourly Clerks I classification
20 hours for the Student Account Specialist classification
20 hours for the Student Services Site Specialist classification
FY 1999-2000 through FY 2009-10
100 hours for the Hourly Clerk I classification
20 hours for the Student Account Specialist classification
The parameters and guidelines (section IV–Reimbursable Activities)
require claimed costs to be supported by source documents that were
created at or near the same time the actual cost was incurred for the event
or activity in question. (See Finding 1 for the specific language).
The parameters and guidelines (section IV.A.1.b – Reimbursable
Activities – Enrollment Fee Collection – One-Time Activities – Staff
Training (one time per employee) state that staff training is reimbursable
as a one-time cost per employee for training district staff who implement
the program based on the procedures for the collection of enrollment
fees. Consistent with the Final Staff Analysis for policies and procedures,
training existing staff for changes in the community college district's
policies and procedures is not reimbursable.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The parameters and guidelines (section V.A.1-Claim Preparation and
Submission-Direct Cost Reporting-Salaries and Benefits) require
claimants to “Report each employee implementing the reimbursable
activities by name, job classification, and productive hourly rate.
Describe the specific reimbursable activities performed and the hours
devoted to each reimbursable activity performed.”
Recommendation
We recommend that the district ensure that claimed costs include only
eligible costs, are based on actual costs, and are properly supported.
District’s Response
The district concurs with the finding and recommendation.
The district claimed $2,622,139 in salaries and benefits for the
Calculating and Collecting Enrollment Fees cost component during the
audit period. We determined that $1,143,641 is allowable and $1,478,498
is unallowable. The costs are unallowable because the district estimated
the amount of time required to perform the reimbursable activities and
claimed employee classifications that did not perform the reimbursable
activities. In addition, the district did not take into account the varying
levels of workload due to changes in student enrollment from year-to-
year.
The following table summarizes the overstated ongoing costs related to
calculating and collecting enrollment fees by fiscal year:
Amount Amount Audit
Fiscal Year Claimed Allowable Adjustment
Salaries and Benefits:
1998-99 372,442$ 87,277$ (285,165)$
1999-2000 403,526 92,919 (310,607)
2000-01 329,574 95,389 (234,185)
2001-02 286,840 105,327 (181,513)
2002-03 273,774 101,996 (171,778)
2003-04 212,393 103,154 (109,239)
2004-05 212,273 105,609 (106,664)
2005-06 146,098 104,636 (41,462)
2006-07 148,247 107,126 (41,121)
2007-08 92,254 123,773 31,519
2008-09 72,359 58,086 (14,273)
2009-10 72,359 58,349 (14,010)
Total 2,622,139$ 1,143,641$ (1,478,498)$
FINDING 3—
Enrollment Fee
Collection:
Calculating and
Collecting Enrollment
Fees Cost Component
– unallowable ongoing
costs
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The parameters and guidelines (section IV.A.2) allow ongoing activities
related to costs for calculating and collecting the student enrollment fee
for each student enrolled, with the exception of nonresidents and special
part-time students, as cited in Government Code section 76300,
subdivision (f), for the following six reimbursable activities:
i. Referencing student accounts and records to determine course workload, status of payments, and eligibility for fee waiver. Printing a list of enrolled
courses. (Activity 1)
ii. Calculating the total enrollment fee to be collected. Identifying method of payment. Collecting cash and making change as necessary. Processing credit
card and other non-cash payment transactions (however, any fees that may
be charged to a community college district by a credit card company or
bank are not reimbursable). Preparing a receipt for a payment received.
(Activity 2)
iii. Answering student’s questions regarding enrollment fee collection or referring them to the appropriate person for an answer. (Activity 3)
iv. Updating written and computer records for the enrollment fee information and providing a copy to the student. Copying and filing enrollment fee
documentation. (Activity 4)
v. Collecting delinquent enrollment fees, including written or telephonic collection notices to students, turning accounts over to collection agencies,
or small claims court action. (Activity 5)
vi. For students who establish fee waiver eligibility after the enrollment fee has been collected, providing a refund or enrollment fees paid and updating
student and district records as required. (Refund process for change in
program is not reimbursable). (Activity 6)
The parameters and guidelines (section IV–Reimbursable Activities)
require claimed costs to be supported by source documents that were
created at or near the same time the actual cost was incurred for the event
or activity in question. (See Finding 1 for the specific language.)
Salaries and Benefits
For FY 1998-99 through FY 2009-10, the district claimed salaries and
benefits for five reimbursable activities under the Calculating and
Collecting Enrollment Fees cost component. During the audit period, the
district did not claim costs for collecting delinquent enrollment fees
(Activity 5).
The district did not compute claimed costs based on average time
allowances to perform the reimbursable activities. Instead, district
employees estimated the percentage of each work day that was spent by
various employee classifications to perform each of the five reimbursable
activities and reported that information on forms developed by the
district’s mandated cost consultant. The district did not provide any
source documentation based on actual data to support the estimated time
allowances. In addition, the district did not factor in the varying levels of
effort spent by staff as a result of changes in student enrollment from
year to year and included costs for employee classifications that did not
perform the reimbursable activities.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The mandated activities were being performed at the district during the
audit period. Therefore, we assessed whether or not the time estimates
cited by district staff were reasonable. We interviewed various district
representatives in order to determine the procedures district staff
followed in order to perform the reimbursable activities. We observed
district staff in the Cashier’s Office, which collects enrollment fees from
students. We documented the average time increments spent by district
staff to perform these activities based on our observations. Based on the
interviews and observations that we held with the Cashier’s Office staff,
we also determined the employee classifications that performed the
reimbursable activities during the audit period.
As noted previously, the district did not factor into its calculations the
varying levels of effort required due to changes in student enrollment.
We calculated costs for each of the reimbursable activities using the time
increments that we observed and the number of enrolled students
(multiplier). We determined that the district overstated salaries and
benefits by $1,478,498 for the audit period.
Activity 1 through Activity 4: Activity 1–Referencing student
accounts, Activity 2–Calculating and collecting the fee; Activity 3–
Answering students’ questions; and Activity 4–Updating student
records
Time Increments
Using forms developed by the district’s mandated cost consultant, the
district estimated the hours district staff spent performing reimbursable
activities. Specifically, staff estimated the percentage of time spent per
day by various employee classifications working on activities 1 through
4. The district did not make any allowance for varying levels of effort
from year to year based on changes to student enrollment. The district
also overstated and understated the number and types of employee
classifications that performed the reimbursable activities.
We held discussions with various district representatives during the audit
period in order to determine the procedures that district staff followed to
perform the reimbursable activities. We observed district staff in the
Cashier’s Office performing reimbursable and other non-mandated
activities. During FY 1998-99 through FY 2007-08, the district used a
software system called Reflections to perform the reimbursable activities
and then changed to its current system Banner, for FY 2008-09 and FY
2009-10. As both systems are still accessible, we were able to document
the average time increments spent by district staff to perform the
reimbursable activities based on our observations for both systems. We
determined that the total allowable time to complete activities 1 through
4 was 15.50 minutes for FY 1998-99 through FY 2007-08 and 6 minutes
for FY 2008-09 and FY 2009-10. District representatives confirmed that
these time increments were representative of the time it took to perform
reimbursable Activity 1 through Activity 4.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Multiplier Calculation
For Activities 1 through 4, we obtained the enrollment numbers from the
CCCCO and deducted ineligible non-resident and special admit students
(students who attend a community college while in high school pursuant
to Education Code section 76001) to determine net student enrollment
for each fiscal year of the audit period. The CCCCO’s management
information system (MIS) identifies enrollment information based on
student data reported by the district. The CCCCO identifies the district’s
enrollment based on CCCCO’s MIS data element STD 7, codes A
through G. The CCCCO eliminates any duplicate data by term based on
the student’s Social Security number.
For Activity 1, we added the number of delinquent fees and refunds
processed by district staff to the net enrollment numbers from the
CCCCO. We used delinquent fees and refund information provided by
the district. For Activity 2, we added the number of refunds processed by
district staff and deducted the number of Board of Governors Grant
(BOGG) recipients confirmed by the CCCCO from net student
enrollment. For Activity 3, we used net enrollment numbers. For
Activity 4, we deducted the number of BOGG recipients confirmed by
the CCCCO from net student enrollment. The CCCCO identifies the
unduplicated number of BOGG recipients by term based on MIS data
element SF21 and all codes with the first letter of B or F.
For the audit period, the district provided a breakdown of the number of
students who paid their enrollment fees through the district’s online
system and those who paid in person. Based on the information provided
by the district, we determined the percentage of enrollment fees paid at
the Cashier’s Office in person by dividing the number of fees paid in
person by the total number of fees paid. During our observation, we
observed district staff providing students, in person and over the
telephone, step-by-step instructions for paying their enrollment fees
online using the district’s website. To process online payments, the
district has available for students computer stations that are located
outside the Cashier’s Office. When students request to pay enrollment
fees with a credit card, district staff members direct them to the computer
stations outside and walk them through the payment process. We noted
during our observations that district staff frequently assisted students in
making online payments. Also, we observed students who had made
online payments come to the Cashier’s Office to ask questions and
process additional payments for items other than enrollment fees. We
determined that it is reasonable to add both the number of students who
paid their enrollment fees through the district’s online system and those
who paid in person. Therefore, we did not allocate the net enrollment
numbers to determine the number of enrollment fees paid in person.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Productive Hourly Rates
We determined that the district overstated and understated productive
hourly rates in its claims for district staff during the audit period. In
addition, costs were claimed for staff members who did not perform the
reimbursable activities. Based on discussions with, and information
from, representatives of the Cashier’s Office, we determined that
employees in the following seven employee classifications performed the
reimbursable activities during the audit period:
Account Clerk II
Accounting Technician I, II
Admission/Records Specialist
Admission/Records Technician
Hourly Clerk
Student Account Specialist
Student Services Site Specialist
Based on information provided by the district, we determined average
productive hourly rates for these staff members during the audit period.
To calculate the average rate, we used employee classification salary
range and benefit rate information provided by the district. For each
employee classification, we used a salary amount in the middle of each
range and 1,800 productive hours. We computed a simple average by
dividing the total of the productive hourly rates by 7.
The following table summarizes the average productive hourly rates for
Activity 1 through Activity 4 by fiscal year:
Activities 1 through 4
Average
Fiscal Productive
Year Hourly Rate
1998-99 - 2000-01 18.99$
2001-02 20.28
2002-03 20.72
2003-04 20.92
2004-05 21.68
2005-06 21.85
2006-07 21.89
2007-08 - 2009-10 23.95
Activity 5 – Collecting Delinquent Enrollment Fees
Time increments
The district understated costs for collecting delinquent enrollment fees
for the audit period. While we determined that the district incurred costs
for collecting delinquent enrollment fees during the audit period, the
district did not claim the costs.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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We held discussions with various district representatives during the audit
in order to determine the procedures that district staff followed to
perform the reimbursable activity of collecting delinquent enrollment
fees. Based on interviews with representatives of the Cashier’s Office
and our own observations, we determined the employee classifications
that performed the reimbursable activity and the actual time spent.
The district maintains a spreadsheet that identifies a cumulative listing of
students with delinquent enrollment fees for each academic year. The
district reviews the delinquent fees spreadsheet and students’ accounts to
determine whether the accounts are still delinquent. The Cashier’s Office
is responsible for processing delinquent enrollment fee letters. The
district is required to attempt contact with students regarding delinquent
fees by sending the students two delinquent-fee letters within a 30-day
period. The district is then required to wait 30 days from the date that the
second delinquent fee letter was sent to the student before reporting the
delinquent fee information to the CCCCO for further collection activity.
The CCCCO refers delinquent accounts to the Franchise Tax Board for
collection.
We documented the average time increment spent by district staff in
collecting delinquent enrollment fees, based on our observations. We
determined the total allowable time allowance for this activity is four
minutes to process delinquent fee letters and one hour to report
information to the CCCCO. District representatives confirmed that this is
the amount of time that it took to perform Activity 5 during the entire
audit period.
Multiplier Calculation
The district provided the delinquent fee report, which included a
cumulative listing of all delinquent fees the district processed for
FY 2004-05, FY 2005-06 and FY 2007-08. We performed a filtered
search so that the reports reflected only the total number of delinquent
enrollment fees for each fiscal year. The district was able to provide
reports only for these three fiscal years. We determined the total number
of delinquent enrollment fees processed for these three years and
calculated the average number of delinquent enrollment fees processed
per year, totaling 136. We applied the average number of delinquent fees
processed for all fiscal years of the audit period.
Productive Hourly Rates
Based on information provided by the district, we determined that the
employee classification of Student Account Specialist performed
Activity 5 during the audit period; we also determined the productive
hourly rates for this classification during the audit period. To calculate
the average rate, we used the Student Account Specialist salary range and
benefit rate information provided by the district. We used a salary
amount in the middle of the range and 1,800 productive hours to
compute the following productive hourly rates:
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Student Account Specialist
Productive
Fiscal Hourly
Year Rate
1998-99 - 2001-02 22.93$
2002-03 23.17
2003-04 23.40
2004-05 24.70
2005-06 - 2006-07 25.31
2007-08 - 2009-10 27.73
Activity 6 – Providing a refund for students who establish fee waiver
eligibility after the enrollment fee has been collected
Time Increments
Using forms developed by the district’s mandated cost consultant, the
district’s prior Director of Fiscal Services estimated the hours district
staff spent providing refunds for students who established fee waiver
eligibility after paying enrollment fees to the district.
To receive a refund of enrollment fees paid, students are required to fill
out a refund request form and submit it to the Cashier’s Office for
processing. The employee classification of Student Account Specialist
performed the reimbursable activity during the audit period. When a
refund request form is received, the student’s account is reviewed to
verify the student’s current address and confirm whether or not a refund
is due. If a refund is due, the refund amount is calculated and the refund
information is logged into a spreadsheet and the refund request form is
filed. The Student Account Specialist submits the refund spreadsheet to
the Computer Services Department on a monthly basis. The Computer
Services Administrator/Operator uploads the spreadsheet into the
district’s computer system. The upload process updates the students’
accounts with calculated refund information and then generates and
prints refund checks.
Based on our interviews and observations with district staff, we
determined that it takes the Student Account Specialist 4 minutes to
process refunds for students who established fee waiver eligibility after
paying their enrollment fees to the district. We also determined that it
takes the Computer Services Administrator/Operator 3.5 hours per month
(42 hours per year) to perform the necessary steps to process the refund
information and generate refund checks. The monthly processing time
did not vary significantly due to the level of activity. District
representatives confirmed that these time increments were representative
of the time it took to perform reimbursable Activity 6 during the entire
audit period.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The following table summarizes the time increments required to perform
Activity 6 by fiscal year:
Activity 6
Total
Fiscal Time
Year Increment
1998-99 7.70
1999-2000 6.18
2000-01 6.60
2001-02 6.49
2002-03 6.20
2003-04 6.01
2004-05 5.78
2005-06 5.52
2006-07 5.37
2007-08 5.48
2008-09 - 2009-10 5.95
Multiplier Calculation
The district provided a report that identified the number of refunds issued
during the audit period to students who established fee waiver eligibility
after paying enrollment fees to the district.
Productive Hourly Rates
Consistent with the information presented for Activities 1 through 4, we
determined that the district overstated and understated productive hourly
rates in its claims for district staff during the audit period. In addition, the
district claimed costs for staff members who did not perform the
reimbursable activities. Based on discussions with, and information
from, representatives of the Cashier’s Office, we determined that
employees in the classifications of Student Account Specialist and
Computer Services Administrator/Operator performed the reimbursable
activity during the audit period.
Based on information provided by the district, we determined average
productive hourly rates for these staff members during the audit period.
To calculate the average rate, we used employee classification salary
range and benefit rate information provided by the district. For each
employee classification, we used a salary amount in the middle of each
range and 1,800 productive hours. We computed a simple average by
dividing the total of the productive hourly rates by 2.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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The following table summarizes the average productive hourly rates for
Activity 6 by fiscal year:
Activity 6
Average
Fiscal Productive
Year Hourly Rate
1998-99 - 2000-01 24.21$
2001-02 25.74
2002-03 26.01
2003-04 26.27
2004-05 27.36
2005-06 27.67
2006-07 27.67
2007-08 - 2009-10 30.31
Calculation of Time Increments
The following table summarizes the minutes allowable for reimbursable
Activity 1 through Activity 6 by fiscal year:
Allowable
Reimbursable Activity FY 1998-99 FY 1999-2000 FY 2000-01 FY 2001-02 FY 2002-03 FY 2003-04
Referencing Students' Accounts 1.50 1.50 1.50 1.50 1.50 1.50
Calculating the Fee 6.00 6.00 6.00 6.00 6.00 6.00
Answering Questions 2.00 2.00 2.00 2.00 2.00 2.00
Updating Records 6.00 6.00 6.00 6.00 6.00 6.00
15.50 15.50 15.50 15.50 15.50 15.50
Collecting Delinquent Fees 4.44 4.44 4.44 4.44 4.44 4.44
Providing Refunds 7.70 6.18 6.60 6.49 6.20 6.01
12.14 10.62 11.04 10.93 10.64 10.45
Total 27.64 26.12 26.54 26.43 26.14 25.95
Allowable
Reimbursable Activity FY 2004-05 FY 2005-06 FY 2006-07 FY 2007-08 FY 2008-09 FY 2009-10
Referencing Students' Accounts 1.50 1.50 1.50 1.50 1.50 1.50
Calculating the Fee 6.00 6.00 6.00 6.00 1.25 1.25
Answering Questions 2.00 2.00 2.00 2.00 2.00 2.00
Updating Records 6.00 6.00 6.00 6.00 1.25 1.25
15.50 15.50 15.50 15.50 6.00 6.00
Collecting Delinquent Fees 4.44 4.44 4.44 4.44 4.44 4.44
Providing Refunds 5.78 5.52 5.37 5.48 5.95 5.95
10.22 9.96 9.81 9.92 10.39 10.39
Total 25.72 25.46 25.31 25.42 16.39 16.39
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Calculation of Multiplier
The following table summarizes the allowable amounts for the multiplier
for each reimbursable activity that took place at the district during the
audit period for reimbursable activities 1 through 6:
Reimbursable Allowable
Activity Multiplier
1 289,435
2 214,711
3 270,439
4 199,347
5 1,632
6 15,364
Total 990,928
Calculation of Hours Adjustments
We multiplied the allowable minutes per activity by the multiplier for the
reimbursable activities (as identified in the table above) to determine
the number of allowable hours for reimbursable Activity 1 through
Activity 6.
The following table summarizes the claimed and allowable hours for the
audit period:
Reimbursable
Activity
Hours
Claimed
Hours
Allowable
Adjusted
Hours
1 48,721.60 7,235.00 (41,486.60)
2 110,788.39 18,577.00 (92,211.39)
3 23,269.15 9,015.00 (14,254.15)
4 11,793.83 17,244.00 5,450.17
5 - 120.00 120.00
6 669.50 1,527.00 857.50
Total Hours 195,242.47 53,718.00 (141,524.47)
Calculation of Costs by Reimbursable Activities
For Activity 1 we multiplied allowable minutes, based on our
observation (1.50 minutes), by net student enrollment to determine the
number of hours spent to perform the activity. We then multiplied the
hours spent times the audited productive hourly rates to determine
allowable costs for salaries and benefits. We determined net student
enrollment by excluding from total student enrollment non-residents and
special part-time students. The CCCCO’s management information
system (MIS) identifies enrollment information based on student data
that the district reported. The CCCCO identifies the district’s enrollment
based on the CCCCO’s MIS data element STD 7, codes A through G.
The CCCCO eliminates any duplicate students based on their Social
Security numbers. We also included the number of delinquent fees and
refunds processed by district staff.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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For Activity 2, we multiplied the allowable minutes, based on our
observation (6.00 minutes for FY 1998-99 through FY 2007-08 and 1.25
minutes for FY 2008-09 and FY 2009-10), by the adjusted net student
enrollment to determine the number of hours spent to perform the
activity. We then multiplied the hours spent times the audit productive
hourly rates to determine allowable costs for salaries and benefits. To
determine adjusted net student enrollment, we deducted from net student
enrollment the number of students who were exempt from paying
enrollment fees because they received BOGG fee waivers. We obtained
the number of students in the district who received BOGG fee waivers
each year from the CCCCO based on data the district reported. The
CCCCO identifies the unduplicated number of BOGG recipients by term
based on MIS data element SF21 and all codes with the first letter of B
or F. We also included the number of refunds processed by district staff.
For Activity 3, we multiplied the allowable minutes, based on our
observation (2.00 minutes), by net student enrollment to determine the
number of hours spent to perform the activity. We then multiplied the
hours spent times the audited productive hourly rates to determine
allowable costs for salaries and benefits.
For Activity 4, we multiplied the allowable minutes, based on our
observation (6.00 minutes for FY 1998-99 through FY 2007-08 and 1.25
minutes for FY 2008-09 and FY 2009-10), by the adjusted net student
enrollment to determine the number of hours spent to perform the
activity. We then multiplied the hours spent times the audited productive
hourly rates to determine allowable costs for salaries and benefits.
We applied the audited productive hourly rates to the allowable hours per
reimbursable activity. We determined that salaries and benefits totaling
$1,143,641 are allowable and $1,478,498 is unallowable.
The following table summarizes the claimed and allowable salary and
benefit costs by reimbursable activity for the audit period:
Reimbursable
Activity
Salaries and
Benefits
Claimed
Salaries and
Benefits
Allowable
Audit
Adjustment
1 588,190$ 155,450$ (432,740)$
2 1,411,251 389,137 (1,022,114)
3 409,630 193,700 (215,930)
4 196,609 360,763 164,154
5 - 2,966 2,966
6 16,459 41,625 25,166
Total 2,622,139$ 1,143,641$ (1,478,498)$
Recommendation
We recommend that the district ensure that claimed costs include only
eligible costs, are based on actual costs, and are properly supported.
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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District’s Response
The district concurs with the finding and recommendation.
The district claimed $3,372 for the one-time activity of staff training
(once per employee) for district staff members who implement the
program on the procedures for determining which students are eligible
for enrollment fee waivers. We determined that $2,666 is allowable and
$706 is unallowable. The district claimed staff training costs for FY
1999-2000, FY 2000-01, and FY 2003-04 through FY 2008-09. Based
on our review, the district claimed staff training costs for the same
employees in its claims for FY 2006-07, FY 2007-08, and FY 2008-09
that it claimed for FY 2005-06. Therefore, we determined that staff
training costs claimed in FY 2006-07, FY 2007-08, and FY 2008-09 are
unallowable. We also determined that the district understated employee
training costs in FY 1999-2000 through FY 2005-06.
The following table summarizes the claimed, allowable, and audit
adjustment amounts for the one-time reimbursable costs for the
Enrolment Fee Waivers – Staff Training Costs component:
Amount Amount Audit Fiscal Year Claimed Allowable Adjustment
Salaries and benefits:1999-2000 552$ 653$ 101$ 2000-01 253 342 89 2003-04 133 273 140 2004-05 681 820 139 2005-06 439 578 139 2006-07 441 - (441) 2007-08 447 - (447) 2008-09 426 - (426)
Total, salaries and benefits 3,372$ 2,666$ (706)$
The parameters and guidelines (section IV–Reimbursable Activities)
require claimed costs to be supported by source documents that created
at or near the same time the actual cost was incurred for the event or
activity in question. (See Finding 1 for the specific language.)
The parameters and guidelines (section V.A.1-Claim Preparation and
Submission-Direct Cost Reporting-Salaries and Benefits) require
claimants to “Report each employee implementing the reimbursable
activities by name, job classification, and productive hourly rate.
Describe the specific reimbursable activities performed and the hours
devoted to each reimbursable activity performed.”
The parameters and guidelines (section IV.B.1.b – Reimbursable
Activities – Enrollment Fee Waivers – One-Time Activities – Staff
Training (one time per employee) state that staff training is reimbursable
as a one-time cost per employee for training district staff who implement
the program on the procedures for determining which students are
eligible for waiver of the enrollment fee. Consistent with the Final Staff
FINDING 4—
Enrollment Fee
Waivers: Staff
Training Cost
Component –
unallowable one-time
costs
San Luis Obispo County Community College District Enrollment Fee Collections and Waivers Program
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Analysis for policies and procedures, training existing staff for changes
in the community college district’s policies and procedures is not
reimbursable.
Recommendation
We recommend that the district ensure that claimed costs include only
eligible costs, are based on actual costs, and are properly supported.
District’s Response
The district concurs with the finding and recommendation.
The district claimed $742,947 in salaries and