Report 2013-045 Recommendation 8 Responses

Report 2013-045: Bureau for Private Postsecondary Education: It Has Consistently Failed to Meet Its Responsibility to Protect the Public's Interests (Release Date: March 2014)

Recommendation #8 To: Private Postsecondary Education, Bureau for

To ensure that the unlicensed institutions it identifies cease to operate, the bureau needs to use the enforcement mechanisms that state law provides for sanctioning unlicensed institutions and track all relevant information related to its enforcement actions against these institutions.

Agency Response*

The Bureau is providing an attachment showing open and closed "Citations for Unapproved Activity". This spreadsheet will have blank spaces if the actions were not applicable to the particular citation. This spreadsheet shows that the Bureau is tracking "all relevant information related to its enforcement actions against these institutions."

  • Response Type†: Annual Follow Up
  • Completion Date: April 2014
  • Response Date: September 2015

California State Auditor's Assessment of Status: Fully Implemented

Agency Response*

The Bureau is including updated procedure #2014-0008 for Monitoring Citations as Attachment #6 that indicates some of the options if institutions fail to respond to a citation. Additionally the Bureau is including procedures for Injunctive Relief (#2015-0005) as Attachment #7, procedures for Emergency Decisions (#2015-0004) as Attachment #8, copy of PUC Resolution allowing the Bureau to disconnect telephone service as Attachment #9 and an example of an injunction that is in process as Attachment #10.

  • Response Type†: 1-Year
  • Completion Date: February 2015
  • Response Date: March 2015

California State Auditor's Assessment of Status: Partially Implemented

The bureau provided us copies of logs that it uses to track its enforcement actions. However, the logs contained either missing dates or other errors. Thus, the bureau is not tracking all relevant information.

  • Auditee did not substantiate its claim of full implementation

Agency Response*

The Bureau utilizes enforcement mechanisms such as demand letters for payment and referral to the Franchise Tax Board. Additionally, the Bureau updated its policy on citation, fine and cost recovery. (See Attachment #8)

  • Response Type†: 6-Month
  • Completion Date: September 2014
  • Response Date: September 2014

California State Auditor's Assessment of Status: Partially Implemented

Although the bureau provided us with its updated policy titled Collection of Citation Fine or Cost Recovery, it did not provide us with its policies related to other methods for sanctioning institutions. For example, state law grants the bureau the ability to bring an action for restitution, a temporary restraining order, or a preliminary or permanent injunction. Further, the bureau did not address the portion of the recommendation for tracking all relevant information related to its enforcement actions against these institutions.

  • Auditee did not address all aspects of the recommendation

Agency Response*

The Bureau is still researching how to effectuate telephone disconnect processes. Action fo equitable relief is being utitlized. This is the responsibility of the Bureau Chief and the Enforcement Chief.

  • Response Type†: 60-Day
  • Estimated Completion Date: October 2014
  • Response Date: May 2014

California State Auditor's Assessment of Status: Pending

Our audit identified other enforcement mechanisms in addition to disconnecting telephone service, such as enforcing administrative fines as money judgments and bringing an action for restitution. We expect the bureau's 6-month and 1-year response to include the status of other enforcement mechanisms.

All Recommendations in 2013-045

†Response Type refers to the interval in which the auditee is providing the State Auditor with their status in implementing recommendations made in an audit report. Auditees must submit a response regarding their progress in implementing recommendations from our reports at three intervals from the release of the report: 60 days, six months, and one year or subsequent to one year.

*Agency responses received after June 2013 are posted verbatim.

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