CERRITOS COMMUNITY COLLEGE DISTICTHigher Education

Special Tests and Provisions – Return of Title IV Funds Federal Agency: U.S. Department of Education Pass-Through Entity: Direct Funded Program Name: Student Financial Assistance Cluster Assistance Listing Numbers: 84.007, 84.033, 84.063, and 84.268 Award Identification Number: P007A240313, P033A240313, P063P241112, P268K241112 Award Year: 2024-2025 Criteria or Specific Requirements 34 CFR 668.173(b) Returns of Title IV (R2T4) funds are required to be deposited or transferred into the Student Financial Aid (SFA) account or electronic fund transfers initiated to ED as soon as possible, but no later than 45 days after the date the institution determines that the student withdrew. Condition Significant Deficiency in Internal Control over Compliance and Instance of Noncompliance – For twenty-six out of sixty students tested, we noted deviations from the District’s designed procedures and controls which resulted in the District not returning the institution’s portion of the required return within the required timeframe. Questioned Costs There are no questioned costs associated with the condition identified. All funds were returned, however not within the 45-day window. Context There were 1,685 Return of Title IV calculations performed during the year ended June 30, 2025. Effect Without proper monitoring of Return of Title IV calculations and when funds are to be returned, the District risks noncompliance with the above referenced criteria. Cause The District’s internal controls were not adequately designed to ensure funds are returned in a timely manner. Repeat Finding (Yes or No) No. Recommendation The District should strengthen internal controls over the Return of Title IV calculations to ensure that funds are returned in a timely manner.

2024-001 Special Tests and Provisions Program Name: Student Financial Assistance Cluster Federal Assistance Listing Number: 84.007, 84.033, 84.063, and 84.268 Federal Agency: U.S. Department of Education (ED) Direct funded by the U.S. Department of Education (ED) Criteria or Specific Requirements OMB Compliance Supplement, OMB No. 1845-0035 – Institutions are required to report enrollment information under the Pell grant and the Direct and FFEL loan programs via the National Student Loan Data System (NSLDS). Institutions are responsible for accurately reporting the following significant data elements under the Campus-Level Record that ED considers high risk: • OPEID Number – This is the OPEID for the location that the student is attending. • Enrollment Effective Date – The date that the current enrollment status reported for a student was first effective. • Enrollment Status – The student’s enrollment status as of the reporting date; fulltime (F), three-quarter time (Q), half-time (H), less than half-time (L), leave of absence (A), graduated (G), withdrawn (W), deceased (D), never attended (X) and record not found (Z) • Certification Date – The date enrollment was certified by the District. At a minimum, schools are required to certify enrollment every 60 days. Institutions are responsible for accurately reporting the following significant data elements under the Program-Level Record that ED considers high risk: • OPEID Number – This is the OPEID for the location that the student is attending. • CIP Code – The code that defines the student’s field of study. • CIP Year – The year that corresponds with the CIP Code. • Credential Level – The level of a credential the student will receive for the program the student is attending. • Published Program Length Measurement – How the program length is measured by the institution whether it be in days, weeks, or years. • Published Program Length – The time it takes to complete a program as determined by the College. • Program Begin Date – The date the student first began attending the program being reported. • Program Enrollment Status – The student’s enrollment status as of the reporting date; full-time (F), three-quarter time (Q), half-time (H), less than half-time (L), leave of absence (A), graduated (G), withdrawn (W), deceased (D), never attended (X) and record not found (Z) • Program Enrollment Effective Date – The date when the student’s current program status first took effect. Institutions are responsible for timely reporting, whether they report directly or via a third-party servicer. Condition Significant Deficiency in Internal Control over Compliance – During our review of the enrollment reporting requirements we observed the following: • For 1 out of 60 students who had a change in their enrollment status during the period subject to audit, the District did not accurately report the effective date of the change. • For 3 out of 60 students tested, the students’ enrollment and program level information were not reported within NSLDS. Questioned Costs There are no questioned costs associated with this finding. Context During the 2023-2024 fiscal year, the District distributed student financial aid to approximately 9,500 students. Effect The District is not in compliance with Federal requirements described in the OMB Compliance Supplement. Cause The District did not accurately report enrollment information for students under the Pell grant and Direct loan programs via NSLDS. Repeat Finding (Yes or No) No. Recommendation The District should implement a process to review, update, and verify student enrollment information that appear on the Enrollment Reporting Roster file or on the Enrollment Maintenance page of the NSLDS Professional Access (NSLDSFAP) website.

2019-001 COMMON ORIGINATION AND DISBURSEMENT (COD) REPORTING Federal Program Affected Program Name: Student Financial Assistance Cluster CFDA Number: 84.007, 84.033, 84.063, and 84.268 Federal Agency: U.S. Department of Education Pass-Through Entity: Direct Funded Criteria or Specific Requirement Common Origination and Disbursement (COD) System (OMB No. 1845-0039) - All schools receiving Pell grants submit Pell payment data to the Department of Education through the COD System. Schools submit Pell origination records and disbursement records to the COD. Origination records can be sent well in advance of any disbursements, as early as the school chooses to submit them for any student the school reasonably believes will be eligible for a payment. The disbursement record reports the actual disbursement date and the amount of the disbursement. The U.S. Department of Education processes origination and/or disbursement records and returns acknowledgments to the school. Institutions must report student payment data within 15 calendar days after the school makes a payment, or becomes aware of the need to make an adjustment to previously reported student payment data or expected student payment data. Schools may do this by reporting once every 15 calendar days, bi-weekly or weekly, or may set up their own system to ensure that changes are reported in a timely manner. Condition Significant Deficiency - The process dates reported in the COD files were more than 15 calendar days after the disbursement dates reported in the COD files in the District's financial records. One out of the forty students tested had a transaction processed in excess of 15 days. Questioned Costs There were no questioned costs associated to the noncompliance. Context The District processed and reported approximately $29,461,639 in Pell grants during the year. Effect The District is not in compliance with the Federal requirements described in the OMB Compliance Supplement. Cause The District did not report student files to COD on a timely basis. Repeat Finding: No Recommendation The District should implement review procedures to verify that all information is properly reported and in compliance with Federal guidelines. Corrective Action Plan The Cerritos College Financial Aid Office has corrected this issue by changing the second disbursement for Pell Grant. The first and second Pell Grant disbursements are no longer over 30 days. As result of changing the second Pell Grant disbursement date to the fourth week of school, all disbursements are immediately reported to COD. This change was implemented in Fall 2019 for the 2019-2020 school year.

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