Audit Report on Guttman Community College’s Controls over Student Activity Fees

June 29, 2022 | FM22-077A

Table of Contents

    Executive Summary

    The City University of New York (CUNY) serves more than 275,000 degree-seeking students as well as 250,000 continuing education and certificate students.[1]

    As part of their tuition payments, full-time and part-time students pay $55 and $20, respectively, in student activity fees per semester for student government and other student activities. Those fees are collected through CUNY’s Fully Integrated Resources and Services Tool (CUNYfirst) system and then turned over to the Guttman Community College Association (Guttman Association).[2] The Guttman Association has the responsibility to supervise and review budgets for programs that are supported by student activity fees in accordance with CUNY’s Bylaws.

    Guttman Community College (Guttman) reported 1,781, 1,930, and 1,800 in student enrollment and $88,555, $94,765, and $90,715 in student activity fees for Fiscal Years 2019, 2020, and 2021, respectively. [3]

    Audit Findings and Conclusion

    This audit found that all student activity fees collected by Guttman during Fiscal Years 2019 through 2021 were turned over to the Guttman Association. The audit also found certain weaknesses in the Guttman Association’s controls over expenses funded by student activity fees. Specifically, the Guttman Association did not maintain notation of quotes or bids from at least three vendors for 23 sampled expense items valued between $251­–$2,000, nor was there any indication that it solicited bids from at least five vendors for one purchase of $3,480. In addition, the audit found no evidence of the Audit Committee’s activity or evidence that authorization for student activity fees receivable write-offs was maintained.

    Audit Recommendations

    This report makes a total of three recommendations, specifically that the Guttman Association should ensure that:

    • Bidding or price research is conducted to ensure that prices are reasonable and that notation of quotes or bids from the solicitation is maintained when required;
    • The Audit Committee’s activity is in line with Guttman Association’s Bylaws and that its proceedings are documented accordingly; and
    • All student activity fees receivable write-offs are properly authorized and documented.

    Agency Response

    In its response provided on June 21, 2022, Guttman agreed with the auditors’ findings and recommendations and informed the auditors of the actions the Guttman Association plans to take to improve its operations.

    [1] Continuing education classes serve professionals seeking up-to-date certifications, people exploring new careers and occupations, new immigrants credentialing their skills for the workforce, and adults improving their English or math proficiency to attain a High School Equivalency diploma.

    [2] According to the Office of Budget and Finance Financial Management Guidelines for College Associations, Section IV (A)(b), the college president is the chair of the college association, who appoints six of its 13 members and approves its governing documents.

    [3] Guttman officially opened on August 20, 2012.

    $242 billion
    Aug
    2022