Los Angeles City College Self Evaluation 2016 Page 45

5. Financial Accountability

Evidence of Meeting the ER:

Past, present, and proposed budgets • LACCD 2015-16 Final Budget LACC Info Only (ER5-1)• LACCD 2014-15 Final Budget LACC Info Only (ER5-2)• LACCD 2013-14 Final Budget LACC Info Only (ER5-3a)• LACCD 2012-13 Final Budget LACC Info Only (ER5-3b)

Certified independent audits, including management letters • Annual Certified Audit Reports 2014-15 (ER5-4a)• Annual Certified Audit Reports 2013-14 (ER5-4b)• Annual Certified Audit Reports 2012-13 (ER5-4c)

LACC Foundation • Annual Foundation Audit Report 2014 (ER5-5a)• Annual Foundation Audit Report 2013 (ER5-5b)• Annual Foundation Audit Report 2012 (ER5-5c)

District Bond fund • Annual Bond Audit Report 2014-15 (ER5-6a)• Annual Bond Audit Report 2013-14 (ER5-6b)• Annual Bond Audit Report 2012-13 (ER5-6c)• Annual Bond Audit Report 2011-12 (ER5-6d)

Analysis and Evaluation:

The College annually undergoes and makes available an external financial audit. The College demonstrates compliance with federal and state requirements.

The College meets the supplemental guidelines for Standard III.D for California public institutions:

• The College annually undergoes an external financial audit. The College has not receivedany qualified or adverse opinions in audit reports in the last three years from district, state, or federal programs. See Standard III.D.7.

• The District has had a positive unrestricted fund balance for the last three years. TheCollege does not maintain a minimum five percent unrestricted reserve, although the District has two sets of reserves to cover all nine colleges: a five percent contingency and a ten percent reserve. The State Chancellor’s Office has not had to intervene regarding fiscal stability or compliance. See Standard III.D.1.

• The District has long-term debt financing through its Bond program and allocates Bondfunding to the College to support approved bond projects. See Standard III.D.8.

Los Angeles City College Self Evaluation 2016 Page 46

• The District has an obligation for OPEB and has completed an actuarial study every other year. See Standard III.D.12.

• The District has a policy that limits accrual of unused vacation time. See Standard III.D.12.

• The District is self-insured for workers’ compensation. See Standard III.D.12. • District budget priorities address long-range financial obligations. See Standard III.D.11. • The College and the Foundation have an agreement as to the role of the Foundation

(ER5-9). The Foundation undergoes an independent audit. • The College follows District policies and procedures regarding purchasing. See Standard

III.D.16. • The College will open and has plans to operate new buildings. See Standards III.B.2 and

III.D.2. • The College’s integrated planning cycle ensures that the budget is developed out of

program review and college level planning. See Standards III.D.1 and III.D.2. • The College reviews its student financial aid obligation through United States

Department of Education financial aid audits and state audits that occur every three years. See Standard III.D.15.

East Los Angeles College Self Evaluation Report 2016 61

The Los Angeles Community College District Board of Trustees appointed the current College

President, Mr. Marvin Martinez, on January 30, 2013, with an effective date of July 1, 2013. 4 5

The president is the chief executive officer of the College, with full-time responsibility to the

institution.6 Neither the college president nor the district chancellor is eligible to serve as the

President of the Board of Trustees.7 The LACCD informed the ACCJC of the appointment of

President Martinez, who replaced Interim President Farley Herzek.

5. Financial Accountability

The institution annually undergoes and makes available an external financial audit by a

certified public accountant or an audit by an appropriate public agency. Institutions that

are already Title IV eligible must demonstrate compliance with federal requirements.

An independent firm conducts audits of the College within the District on an annual basis. They

produce the “LACCD Report on Audited Basic Financial Statements” using Government Audit

Standards. The most recent result found the financial statements presented fairly, in all material

respects, the net assets of the LACCD in conformity with U.S. generally accepted accounting

principles. For the fiscal year ending June 30, 2014 and 2013, the District did not have any

communicated appropriately through Office of Chief Financial Officer website.8 9

The Department of Education specifies that institutions with a three-year cohort loan default rate

of 30 percent or greater for three consecutive years may be subject to a loss of the Direct Loan

Program and/or Federal Pell Grant Programs. According to the Department of Education’s

website10 the default rates for East Los Angeles College for fiscal years 2010, 2011, and 2012 are

11.6 percent, 19.2 percent, and 13.4 percent, respectively, which are well within the acceptable

range.

1 Letter from ACCJC reaffirming accreditation 6/30/2010 2 East Los Angeles College Facts in Brief, Fall 2014 3 Catalog Listing of State-Approved Degrees and Certificates p. 86-88 4 BOT Agenda, January 30, 2013, p. 25 5 BOT Minutes, January 30, 2013, p. 5 6 Job description for ELAC President 7 LACCD Board Rule 2200 8 LACCD Basic Financial Statements and Supplemental Information, June 30, 2014 9 LACCD Basic Financial Statements and Supplemental Information, June 30, 2013 10 Department of Education School Default Rate

Los Angeles Harbor College Self Evaluation Report 2016

Los Angeles Harbor College Self Evaluation Report 2016

73Institutional Self Evaluation Report in Support of Reaffirmation of Accreditation

5. Financial Accountability

The institution annually undergoes and makes available an external financial audit by a certified public accountant or an audit by an appropriate public agency. Institutions that are already Title IV eligible must demonstrate compliance with federal requirements.

Additional financial accountability for eligibility applicants: The institution shall submit with its eligibility application a copy of the budget and institutional financial audits and management letters prepared by an outside certified public accountant or by an appropriate public agency, who has no other relationship to the institution, for its two most recent fiscal years, including the fiscal year ending immediately prior to the date of the submission of the application. The audits must be certified and any exceptions explained. It is recommended that the auditor employ as a guide Audits of Colleges and Universities published by the American Institute of Certificated Public Accountants. An applicant institution must not show an annual or cumulative Operating deficit at any time during the eligibility process.

The Los Angeles Community College District conducts annual fiscal audits by an external certified public accountant. The Board of Trustees reviews these audit reports annually in public sessions and discusses management responses to any exception. The District files audit reports with the Los Angeles County Office of Education, the State Chancellor’s Office, and any other public agencies as required. Los Angeles Mission College is not audited as a separate entity. In fiscal year 2014-2015, the College operated with a carryover balance of appropriately $330,000 which was used to cover expenditures incurred in fiscal year 2015-2016. When audit exceptions are identified, LAMC implements a plan of corrective action. The Vice Presidents have been designated to monitor corrective action plans in their areas.

Los Angeles Mission College

Los Angeles Pierce College Institutional Self Evaluation Report

39

notify the Accrediting Commission when there is a change in the chief

executive officer.

Authority to operate the College and administer board policies is given to the chief executive officer in Board Rule 9802, which states the

following: “The president of the college or his/her authorized representative shall enforce the Board Rules and Administrative

Regulations pertaining to campus conduct and may develop guidelines, apply sanctions, or take appropriate action consistent with such rules

and regulations” (ER.13).

Neither the college president nor the district chancellor serve as the chair of the governing board. The board chair is elected each year in

July during the annual organizational meeting in accordance with Board Rule 2200 (ER.14). The current governing board chair was

elected on July 8, 2015 (ER.15; ER.16; and, ER.17).

5. Financial Accountability

The institution annually undergoes and makes available an externalfinancial audit by a certified public accountant or an audit by an

appropriate public agency. Institutions that are already Title IVeligible must demonstrate compliance with federal requirements.

Annual external financial audits by a certified public accountant are

conducted of the Los Angeles Community College District. Los Angeles Pierce College (LAPC) is not audited as a separate entity (ER.18;

ER.19; and ER.20). The governing board reviews these reports in a regularly scheduled meeting during public session, which includes

discussion of management responses to any exceptions (ER.21; ER.22; and ER.23). The District files audit reports with the Los

Angeles County Department of Education and any other public

agencies, as required.

An independent firm conducts audits of the Los Angeles Community College District (LACCD) financial aid programs on an annual basis.

The most recent audit of the LAPC Program was during the 2013-2014 academic year. There were no findings in 2013-2014 as a result of the

audit. The LACCD produces a report called the Basic Financial Statements and Supplemental Information Audit Reports at the end of

each audit period (ER.24 and ER.25). Pierce College did not have a site visit during the 2013-2014 audit cycle.

Los Angeles Pierce College default rates fall within the acceptable

range. The College’s three-year cohort default rates during the last

Certification of Continued Institutional Compliance with Eligibility Requirements

40

cohort years were under 30 percent. The 2012 cohort defaults were

22.9 percent; in 2011, the default rates were 20.1 percent; and, in 2010, the cohort default rates were 20.2 percent (ER.26). Additional

information regarding LAPC’s compliance with Title IV federal regulations can be found in the College’s response to the Policy on

Institutional Compliance with Title IV.

Certification of Continued Institutional Compliance with Eligibility Requirements Evidence List

ER.1: Education Code 70900-70901 – pshare ID 798 ER.2: Los Angeles Community College (LACCD) Web site; About LACCD;

LACCD Colleges – pshare ID 1299

ER.3: Accrediting Commission Action Letter dated March 20, 1956 - – pshare ID 1141

ER.4: Accrediting Commission Action Letter dated July 3, 2013 – pshare ID 799

ER.5: Pierce Headcount FA08, FA12-FA14 – pshare ID 797

ER.6: Pierce Awards 2009-2010, 2013-2014, 2014-2015 – pshare ID 796 ER.7: Pierce Active Courses in ECD (9/3/15) – pshare ID 795

ER.8: Enrollment Evidence from SIS_RDB – pshare ID 794 ER.9: Los Angeles Community College Board Rules 6201.13 and 6201.14

– pshare ID 212

ER.10: Los Angeles Community College Board of Trustees Meeting Minutes, May 26, 2010, p. 5 – pshare ID 816

ER.11: Los Angeles Community College Board of Trustees Meeting Agenda, June 16, 2010, Human Resources Division 2 (HRD2) – pshare ID

817 ER.12: Los Angeles Community College Board of Trustees Meeting Agenda,

July 23, 2010, Human Resources Division 1 (HRD1) – pshare ID 782

ER.13: Los Angeles Community College Board Rule 9802 – pshare ID 811 ER.14: Los Angeles Community College Board Rule 2200 – pshare ID 810

ER.15: Los Angeles Community College Board of Trustees Meeting Minutes, July 8, 2015 p. 2 – pshare ID 818

ER.16: Los Angeles Community College Board of Trustees Meeting Minutes,

July 9, 2014 pp. 4-5 – pshare ID 821 ER.17: Los Angeles Community College Board of Trustees Meeting Minutes,

July 10, 2013 pp. 2-3 – pshare ID 822 ER.18: Certified annual financial audit 2014 – pshare ID 1681 ER.19: Certified annual financial audit 2013 – pshare ID 1682

ER.20: Certified annual financial audit 2012 – pshare ID 1683 ER.21: Budget and Finance Committee Meeting, December 3, 2014 –

pshare ID 824 ER.22: Budget and Finance Committee Meeting, December 4, 2013 –

pshare ID 825

Los Angeles Pierce College Self Evaluation Report 2016

4. Chief Executive OfficerThe institution has a chief executive officer appointed by the governing board, whose full-time responsibility is to the institution, and who possesses the requisite authority to administer board policies. Neither the district/system chief administrator nor the college chief administrator may serve as the chair of the governing board. The institution informs the Commission immediately when there is a change in the institutional chief executive officer.

The Chief Executive Officer of the LACCD is the Chancellor, Dr. Francisco C. Rodriguez, who has served in this capacity since June 1, 2014. His full-time responsibility is to oversee the LACCD with its nine colleges in accordance with Board policies and rules. The Chief Executive Officer of Los Angeles Southwest College is Dr. Linda Rose, who commenced her duties and responsibilities on August 4, 2014. As President, Dr. Rose’s primary responsibilities are to oversee the operation of the College. Neither Dr. Rodriguez nor Dr. Rose serves as the chair of the governing board (ER.4-1: Chancellor’s Biography; ER.4-2: President’s Biography; ER.4-3: Board Rule 2200 ; ER.4-4: Current Board of Trustees Members).

5. Financial AccountabilityThe institution annually undergoes and makes available an external financial audit by a certified public accountant or an audit by an appropriate public agency. Institutions that are already Title IV eligible must demonstrate compliance with federal requirements.

Annual external financial audits are conducted of each college in the Los Angeles Community College District by a certified public accountant. The Board of Trustees reviews these audit reports annually, and the results of the audits are made public. Information regarding LASC’s compliance with Title IV federal regulations can be found in the College’s response to the Policy on Institutional Compliance with Title IV (ER.5-1: Certified Annual Financial Audits for 2012, 2013, and 2014).

Eligibility Requirements #6 through #21 are addressed in the Self-Evaluation Report

Certification of Continued Institutional Compliance with Eligibility Requirements Evidence List

ER.1-1: Education Code 70900-70901 ER.1-2: Los Angeles Community College (LACCD) screenshot ER.1-3: Accrediting Commission Action Letter dated July 3, 2014 ER.2-1: Class schedule ER.2-2: Fall 2014 college profile ER.3-1: List of degrees and certificates ER.3-2: College Catalog

Los Angeles Southwest College | Institutional Self Evaluation Report 69

ER.3-3: LACCD Board Rules 6201.13 and 6201.14 ER.4-1: Chancellors Biography ER.4-2: Presidents Biography ER.4-3: Board Rule 2200 ER.4-4: Current Board of Trustees Members ER.5-1: Certified Annual Financial Audits for 2012, 2013, and 2014

Los Angeles Southwest College | Institutional Self Evaluation Report 70

Los Angeles Trade-Technical College Self Evaluation Report 2016 Page 67

5. Financial AccountabilityThe institution annually undergoes and makes available an external financial audit by a certified public accountant or an audit by an appropriate public agency. Institutions that are already Title IV eligible must demonstrate compliance with federal requirements.

The LACCD is subject to annual financial audits by an external certified public accountant (ER.5-1, ER.5-2, ER.5-3). The Board of Trustees reviews these reports in a regularly scheduled meeting during public session (ER.5-4, ER.5-5, ER.5-6). The District files audit reports with the Los Angeles County Department of Education and any other public agencies as required. LATTC is not audited as a separate entity. The District office gives the College the list of any audit findings for the College so that it can prepare the corrective action plan. The College has received no external audit findings since 2011.

LATTC’s student loan default rates has reached the default rate level above 32.2% (ER.5-7). As a result, the College is in the process of contracting the services of a consultant to assist in improving the percentage of students repaying their loans (ER.5-8). The College has also created a Loan Default Prevention workgroup comprised of faculty, staff, and administration from across the institution. The Office of Institutional Effectiveness provided a deep analysis of student level information for students currently in default. After review of the data, the workgroup identified three target student populations. These groups will be the basis for the Loan Default Prevention Plan, as required by the United States Department of Education.

The District is subject to the annual Office of Management and Budget (OMB) A-133 audit. The audit allows the auditor to express an opinion on compliance for the District’s major federal programs, including Title IV programs. For the year ending June 30, 2014, the District received an unmodified opinion over the compliance with requirements as described in the OMB Circular A-133 Compliance Supplement. The audit found no instances of non-compliance at LATTC (ER.5-9).

ER.5. Evidence

ER.5-1 2012-Certified-Annual-LACCD-Audit-Report ER.5-2 2013-Certified-Annual-LACCD-Audit-Report ER.5-3 2013-2014 Certified-Annual-LACCD-Audit-Report ER.5-4 Finance-and-Audit-Committee-Minutes-Dec-18-2012 ER.5-5 Budget-Finance-Committee-Minutes-Dec-4-2013 ER.5-6 Budget-Finance-Committee-Minutes-Dec-3-2014 ER.5-7 LATTC Default Loan Rate ER.5-8 LATTC Contract with Consultant to Improve Student Repayment of Loans ER.5-9 LACCD OMB A-133 Compliance Audit

Eligibility Requirements 6 – 21 are to be addressed in the relevant sections of the Accreditation standards

22

Compliance with Eligibility Requirements

1. AUTHORITY

Los Angeles Valley College is a public two-year community college operating under the authority of the State of California, the Board of Governors of the California Community Colleges, and the Board of Trustees of the Los Angeles Community College District. This authority has existed continuously since 1949 with accreditation status regularly renewed by the Accrediting Commission for Community and Junior Colleges, WASC.

2. OPERATIONAL STATUS

LAVC is a comprehensive college that has been in continuous operation since 1949. Students actively pursue a wide range of academic and vocational programs leading to degrees and certificates, transfer to four-year colleges and universities, job training, career advancement, personal enrichment, and lifelong learning.

3. DEGREES

LAVC offers programs leading to 60 Associate in Arts (AA) degrees, 19 Associate in Science (AS) degrees, 17 Associate in Arts for Transfer (AA-T) degrees, five Associate in Science for Transfer (AS-T) degrees, 52 Certificates of Achievement, 13 Skills Certificates, and 11 Noncredit Certificates of Completion (ER.1 Educational Programs, 2015-16 LAVC Catalog). Fifty-seven percent of programs (101 out of 177) lead to a degree. Most of the courses satisfy requirements for either majors or general education, and the majority of the student population is enrolled in degree-applicable courses.

4. CHIEF EXECUTIVE OFFICER

Dr. Erika Endrijonas has been LAVC’s college president since August 2014 (ER.2 President’s Bio). Her full-time responsibility is to serve as the chief executive officer of the College. She is given authority by the Board of Trustees in to administer board policies. She does not serve on the District governing board.

5. FINANCIAL ACCOUNTABILITY

Annual financial audits are conducted by externally contracted certified public accountants: Link to LACCD External Audits. The Board of Trustees reviews these audit reports annually. Financial audit and management responses to any exceptions are reviewed and discussed in the Board’s public sessions.

ELIGIBILITY REQUIREMENTS #6 THROUGH #21 ARE ADDRESSED IN THE SELF EVALUATION REPORT

Los Angeles Valley College Self Evaluation Report 2016

W L A C S E L F E V A L U A T I O N | P a g e 7 1

4. Chief Executive Officer

The chief executive officer of the

LACCD is the Chancellor, Francisco C.

Rodriguez, who has served in this

capacity since June 1, 2014.6 His full-

time responsibility is to the institution

and to administering the LACCD with

its nine colleges in accordance with

Board policies and rules. The interim

chief executive officer of WLAC is Mr.

Robert Sprague, who commenced his

duties and responsibilities on July 1,

2015.7 As interim president, Mr.

Sprague’s primary responsibilities are to

provide effective leadership to complete

the self-evaluation process, balance the

college budget, manage enrollment, and

administer the Proposition A/AA and

Measure J bond construction projects.8

Neither Dr. Rodriguez nor Mr. Sprague

serves as the chair of the governing

board.9

6 Meet the Chancellor 7 Board of Trustees Minutes, June 24, 2015, page 8 ; President’s Message 8 Board Rule 9802 9 Board Rule 2200 ; Current Board of Trustees Members

5. Financial Accountability

The District is required to have an

independent audit of its financial

statements annually. Because the District

is the legal entity composed of nine

individual colleges, those colleges are

audited along with, and as part of, the

annual audit. The annual audit includes

an audit of internal controls and state

and federal compliance. The “Report on

Audited Basic Financial Statements”

dated June 30, 2015 was prepared by

KPMG, LLP. It received an

“unqualified” opinion.10

10 LACCD Audit Reports