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Millions in College District claims 'unallowable,' audit says

The state controller's office says the Los Angeles Community College District should be denied $23.7 million in state funding that the nine-campus system contends it is owed for collecting student fees and awarding financial aid for more than a decade. In a new audit report, the controller's office said the college district did not submit proper documentation of its cost claims and understated some savings and reimbursements.

As a result, the office recommends that the college district receive only $2.5 million on top of the $2.27 million it already has received for the managerial costs of collecting student fees and waiving them for low-income students from July 1, 1998, through June 20, 2009. The additional $23.7 million the district is seeking “is unallowable,” the audit found.

The district, which enrolls about 141,000 students, issued a statement Monday by its chief financial officer, Jeanette Gordon, saying that her office is reviewing the controller’s report and that she believes the matter is "primarily a dispute over documentation.”  Gordon said the district will be providing the proper paperwork and expects a favorable outcome.


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-- Larry Gordon

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