2014 Corrective Action Matrix for 2014 audit

2014 Corrective
Action Matrix
for 2014 audit
January 13, 2015
• FINDING: Entity-Wide full accrual basis, the District’s
unrestricted Net Position/deficit is $27.2 million. Due
primarily to the growing obligation for the
postemployment health care benefits and the obligation
to repay OPEB taxable bonds.
• CORRECTIVE ACTION: The District currently has an active
investment portfolio funded through the issuance of
bonds and has earmarked funds held in the County
Treasury for the funding of the OPEB obligation. We are
in the process of obtaining a new actuarial study to
determine the amount required for retiree’s medical
benefits, once determined an irrevocable trust will be
created and the OPEB contribution will be adjusted to
address future needs.
• FINDING: The disbursement to or on behalf of students
processed at the College, it was observed that the
process dates reported in the COD files were more than
30 days after the disbursement dates reported in the
COD files in the District’s financial records.
• CORRECTIVE ACTION: Establishment of a district-wide
Compliance Assurance Program (CAP) for its Financial
Aid Program. Compliance will continue to be monitored
by the District Financial Aid Director and the Internal
Auditor. District IT is currently conducting a preliminary
development of a pilot application to automate the
COD reporting process.
• FINDING: One student tested at Merritt College was
awarded their Pell disbursement, but dropped
before the second disbursement was paid. The
College had not identified this student as a Return
of Title IV student and no calculation was prepared
to determine the amount of funds that needed to
be returned (if any).
• CORRECTIVE ACTION: Continued training and
compliance monitoring by the Financial Aid
Director and the CAP.
• FINDING: The Colleges noted above did not have
adequate documentation to show that they were
reconciling the SAS data file and the Loan Detail
records to the institution’s financial records on a
monthly basis.
• CORRECTIVE ACTION: Continued training and
compliance monitoring by the Financial Aid
Director and the CAP.
• FINDING: The District IT Department did not submit
any required enrollment reports (SSCR) to the NSLDS
from the period between early September 2013 to
min-June 2014.
• CORRECTIVE ACTION: Data covering the period
from September 2013 to mid-June 2013 has been
submitted to NSLDS. District IT and A&R are working
together to correct the data submission.
• FINDING: The District is not following established written
policies and procedures for monitoring Federal
equipment. Equipment that is directly shipped to the
sites rather than the District’s warehouse are potentially
bypassing the established procedures for tagging them
as Federal equipment and are not being included on
the site’s inventory listing of the Federal program. One
item tested was delivered directly to the Berkeley
campus and was not properly tagged and identified as
• CORRECTIVE ACTION: AP 6551 Inventory of Property and
Equipment established to account for items shipped
directly to the Colleges. First review at Cabinet on Jan,
13, 2015.
FINDING: Time studies have not been completed
for individuals who work either full-time or part-time
on the program as required by the OMB Circular.
The College did obtain a signed certifications after
this issue was brought to their attention.
• CORRECTIVE ACTION: Internal auditor and District
Grants Administrator training staff. CAP for Grants
Management to promote compliance with
regulatory requirements.
• FINDING: CARE advisory committee meeting was
held only one time during the year. The CARE
Program guidelines note that the advisory
committees are to meet at least twice during each
academic year.
• CORRECTIVE ACTION: Two advisory meetings have
been set up for the 2014-15 fiscal year. These are
joint meetings with EOPS and EOPS guidelines only
require one advisory meeting annually.
• FINDING: Proof of residency needs to be obtained
and maintained, when changing a student from
non-resident to resident status.
• CORRECTIVE ACTION: District A&R created a query
to identify students where their status has been
changed from non-resident to resident. Each
College will be provided with a list of student whose
residency classification changed within the
semester, and they will be required to submit
supporting documentation to District A&R for
appropriate record keeping.
• FINDING: Education Protection Account (EPA)funds
were spent on administrative salaries.
• CORRECTIVE ACTION: Funds in question were for
faculty department chair positions. In the future,
funds received through the EPA will not include the
department chair costs.
Measure A
Bonds Audit
January 13, 2015
• FINDING: Payroll funds were spent on non-bond
• CORRECTIVE ACTION: Unauthorized expenditures
moved from the Bond fund into the General Fund in
2014-15 for expenses of 2013-14, restoring the
amounts in the Bond fund. All employees being
charged to the Bond fund have been reviewed to
ensure their job description still requires them to be
paid using Bond funds.
• FINDING: The Citizens’ Oversight Committee has
not met since September 26, 2013
• CORRECTIVE ACTION: The members of the Citizens’
Oversight Committee have been established and
contacted and a meeting is scheduled for late
January 2015.

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