State Center Community College District

BETTY T. YEE California State Controller February 21, 2018 Edwin Eng, Vice Chancellor, Finance and Administration State Center Community College District 1525 East Weldon Avenue Fresno, CA 93704 Dear Mr. Eng: The State Controller’s Office (SCO) reviewed the costs claimed by State Center Community College District for the legislatively mandated Integrated Waste Management (IWM) Program (Chapter 1116, Statutes of 1992; and Chapter 764, Statutes of 1999) for the period of July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011. We did not include the costs claimed for the period of July 1, 2001, through June 30, 2003, in the review period because the statute of limitations to initiate the review had expired before we began the review. Our review was limited to ensuring that offsetting savings were properly reported in accordance with program requirements. This reissued report updates our previous letter report, issued August 30, 2013. The previous letter report identified $296,208 in unreported offsetting savings for fiscal year (FY) 1999-2000 through FY 2000-01, and FY 2003-04 through FY 2010-11. On December 1, 2017, the Commission on State Mandates (Commission) issued a decision in response to an Incorrect Reduction Claim filed by the district for the IWM Program. In its decision the Commission concluded that our reduction of costs claimed for the first half of FY 2003-04 (which was based on a diversion rate of 50% rather than 25%), was incorrect and that the difference of $3,358 had been incorrectly reduced. In compliance with the Commission’s decision, we have reinstated $3,358 for FY 2003-04. As a result, allowable costs increased by $3,358, from $140,311 to $143,669. We advised you of the revision to this report via email on January 9, 2018. The district claimed $436,519 for the mandated program. Our review found that $143,669 is allowable and $292,850 is unallowable. The costs are unallowable because the district did not report any offsetting savings realized as a result of implementing its IWM plans, as described in the attached Summary of Program Costs, Summary of Offsetting Savings Calculations, and Finding and Recommendation. The State paid the district $140,311. The State will pay allowable costs claimed that exceed the amount paid, totaling $3,358, contingent upon available appropriations. Following issuance of this report, the SCO’s Local Government Programs and Services Division will notify the district of the reinstatement adjustment via a system-generated letter for FY 2003-04. Edwin Eng, Vice Chancellor, -2- February 21, 2018 Finance and Administration If you have any questions, please contact Jim L. Spano, CPA, Assistant Division Chief, by telephone at (916) 323-5849. Sincerely, Original signed by JEFFREY V. BROWNFIELD, CPA Chief, Division of Audits JVB/as Attachments RE: S13–MCC–959R cc: Wil Schofield, Director of Finance State Center Community College District Glynna Billings, Accounting Manager State Center Community College District Frances Parmelee, Assistant Vice Chancellor College Finance and Facilities Planning California Community Colleges Chancellor’s Office Wrenna Finche, Director of Fiscal Standards and Accountability College Finance and Facilities Planning California Community Colleges Chancellor’s Office Chris Ferguson, Principal Program Budget Analyst Educations Systems Unit California Department of Finance Keith Nezaam, Staff Finance Budget Analyst Educations Systems Unit California Department of Finance Anita Dagan, Manager Local Government Programs and Services Division California State Controller’s Office State Center Community College District Integrated Waste Management Program Revised Attachment 1— Summary of Program Costs July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011 Actual Costs Allowable Review Cost Elements Claimed per Review Adjustment 1 July 1, 1999, through June 30, 2000 Direct costs: Salaries and benefits $ 16,038 $ 16,038 $ - Fixed assets 14,487 14,487 - Travel and training 323 323 - Total direct costs 30,848 30,848 - Indirect costs 6,136 6,136 - Total direct and indirect costs 36,984 36,984 - Less offsetting revenues and reimbursements (467) (467) - Less offsetting savings 2 - (10,535) (10,535) Total program costs $ 36,517 25,982 $ (10,535) Less amount paid by the State 3 (25,982) Allowable costs claimed in excess of (less than) amount paid $ - July 1, 2000, through June 30, 2001 Direct costs: Salaries and benefits $ 16,462 $ 16,462 $ - Fixed assets 10,528 10,528 - Total direct costs 26,990 26,990 - Indirect costs 5,695 5,695 - Total direct and indirect costs 32,685 32,685 - Less offsetting revenues and reimbursements (236) (236) - Less offsetting savings 2 - (20,642) (20,642) Total program costs $ 32,449 11,807 $ (20,642) Less amount paid by the State 3 (11,807) Allowable costs claimed in excess of (less than) amount paid $ - 1 of 4 State Center Community College District Integrated Waste Management Program Revised Attachment 1 (continued) Actual Costs Allowable Review Cost Elements Claimed per Review Adjustment 1 July 1, 2003, through June 30, 2004 Direct costs: Salaries and benefits $ 33,081 $ 33,081 $ - Indirect costs 10,364 10,364 - Total direct and indirect costs 43,445 43,445 - Less offsetting revenues and reimbursements (323) (323) - Less offsetting savings 2 - (26,211) (26,211) Total program costs $ 43,122 16,911 $ (26,211) Less amount paid by the State (13,553) Less amount paid by the State 3 Allowable costs claimed in excess of (less than) amount paid $ 3,358 July 1, 2004, through June 30, 2005 Direct costs: Salaries and benefits $ 32,326 $ 32,326 $ - Indirect costs 11,800 11,800 - Total direct and indirect costs 44,126 44,126 - Less offsetting revenues and reimbursements (602) (602) - Less offsetting savings 2 - (31,734) (31,734) Total program costs $ 43,524 11,790 $ (31,734) LLeessss aammoouunntt ppaaiidd bbyy tthhee SSttaattee 3 (11,790) Allowable costs claimed in excess of (less than) amount paid $ - July 1, 2005, through June 30, 2006 Direct costs: Salaries and benefits $ 44,873 $ 44,873 $ - Indirect costs 16,379 16,379 - Total direct and indirect costs 61,252 61,252 - Less offsetting revenues and reimbursements (375) (375) - Less offsetting savings 2 - (34,278) (34,278) Total program costs $ 60,877 26,599 $ (34,278) LLeessss aammoouunntt ppaaiidd bbyy tthhee SSttaattee 3 (26,599) Allowable costs claimed in excess of (less than) amount paid $ - 2 of 4 State Center Community College District Integrated Waste Management Program Revised Attachment 1 (continued) Actual Costs Allowable Review Cost Elements Claimed per Review Adjustment 1 July 1, 2006, through June 30, 2007 Direct costs: Salaries and benefits $ 37,480 $ 37,480 $ - Indirect costs 13,681 13,681 - Total direct and indirect costs 51,161 51,161 - Less offsetting revenues and reimbursements (710) (710) - Less offsetting savings 2 - (37,027) (37,027) Total program costs $ 50,451 13,424 $ (37,027) L L e e s s s s a a m m o o u u n n t t p p a a i i d d b b y y t t h h e e S S t t a at t e e 3 (13,424) Allowable costs claimed in excess of (less than) amount paid $ - July 1, 2007, through June 30, 2008 Direct costs: Salaries and benefits $ 38,480 $ 38,480 $ - Indirect costs 14,045 14,045 - Total direct and indirect costs 52,525 52,525 - Less offsetting revenues and reimbursements (1,728) (1,728) - Less offsetting savings 2 - (38,110) (38,110) Total program costs $ 50,797 12,687 $ (38,110) L L e e s s s s a a m m o o u u n n t t p p a a i i d d b b y y t t h h e e S S t t a at t e e 3 (12,687) Allowable costs claimed in excess of (less than) amount paid $ - July 1, 2008, through June 30, 2009 Direct costs: Salaries and benefits $ 39,509 $ 39,509 $ - Indirect costs 14,421 14,421 - Total direct and indirect costs 53,930 53,930 - Less offsetting revenues and reimbursements (1,170) (1,170) - Less offsetting savings 2 - (40,805) (40,805) Total program costs $ 52,760 11,955 $ (40,805) L L e e s s s s a a m m o o u u n n t t p p a a i i d d b b y y t t h h e e S S t t a at t e e 3 (11,955) Allowable costs claimed in excess of (less than) amount paid $ - 3 of 4 State Center Community College District Integrated Waste Management Program Revised Attachment 1 (continued) Actual Costs Allowable Review Cost Elements Claimed per Review Adjustment 1 July 1, 2009, through June 30, 2010 Direct costs: Salaries and benefits $ 39,939 $ 39,939 $ - Indirect costs 12,685 12,685 - Total direct and indirect costs 52,624 52,624 - Less offsetting revenues and reimbursements (846) (846) - Less offsetting savings 2 - (42,729) (42,729) Total program costs $ 51,778 9,049 $ (42,729) L L e e s s s s a a m m o o u u n n t t p p a ai id d b by y t t h he e S S t t a a t t e e 3 (9,049) Allowable costs claimed in excess of (less than) amount paid $ - July 1, 2010, through June 30, 2011 Direct costs: Salaries and benefits $ 11,216 $ 11,216 $ - Indirect costs 3,538 3,538 - Total direct and indirect costs 14,754 14,754 - Less offsetting revenues and reimbursements (510) (510) - Less offsetting savings 2 - (10,779) (10,779) Total program costs $ 14,244 3,465 $ (10,779) L L e e s s s s a a m m o o u u n n t t p p a ai id d b by y t t h he e S S t t a a t t e e 3 (3,465) Allowable costs claimed in excess of (less than) amount paid $ - Summary: July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011 Direct costs: Salaries and benefits $ 309,404 $ 309,404 $ - Fixed assets 25,015 25,015 - Travel and training 323 323 - Total direct costs 334,742 334,742 - Indirect costs 108,744 108,744 - Total direct and indirect costs 443,486 443,486 - Less offsetting revenues and reimbursements (6,967) (6,967) - Less offsetting savings 2 - (292,850) (292,850) Total program costs $ 436,519 143,669 $ (292,850) LLeessss aammoouunntt ppaaiidd bbyy tthhee SSttaattee 3 (140,311) Allowable costs claimed in excess of (less than) amount paid $ 3,358 _________________________ 1 See Revised Attachment 3, Finding and Recommendation. 2 See Revised Attachment 2, Summary of Offsetting Savings Calculations. 3 Payment information current as of November 28, 2017. 4 of 4 State Center Community College District Integrated Waste Management Program Revised Attachment 2— Summary of Offsetting Savings Calculations July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011 Offsetting Offsetting Savings Realized Savings Review Cost Elements Reported July - December January - June Total Adjustment 1 July 1, 1999, through June 30, 2000 Reedley College: Maximum allowable diversion percentage — 25.00% Actual diversion percentage ÷ — ÷ 24.57% Allocated diversion percentage 2 — 100.00% Tonnage diverted x — x (195.10) Statewide average landfill fee per ton x — x $36.39 Offsetting savings, Reedley College — (7,100) (7,100) Fresno City College: Maximum allowable diversion percentage — 25.00% Actual diversion percentage ÷ — ÷ 53.39% Allocated diversion percentage — 46.83% Tonnage diverted x — x (201.55) Statewide average landfill fee per ton x — x $36.39 Offsetting savings, Fresno City College — (3,435) (3,435) Total offsetting savings, FY 1999-2000 $ — $ — $ (10,535) $ (10,535) $ (10,535) July 1, 2000, through June 30, 2001 Reedley College: Maximum allowable diversion percentage 25.00% 25.00% Actual diversion percentage ÷ 24.57% ÷ 25.02% Allocated diversion percentage 2 100.00% 99.92% Tonnage diverted x (195.10) x (183.50) Statewide average landfill fee per ton x $36.39 x $36.39 Offsetting savings, Reedley College (7,100) (6,672) (13,772) Fresno City College: Maximum allowable diversion percentage 25.00% 25.00% Actual diversion percentage ÷ 53.39% ÷ 53.39% Allocated diversion percentage 46.83% 46.83% Tonnage diverted x (201.55) x (201.55) Statewide average landfill fee per ton x $36.39 x $36.39 Offsetting savings, Fresno City College (3,435) (3,435) (6,870) Total offsetting savings, FY 2000-01 $ — $ (10,535) $ (10,107) $ (20,642) $ (20,642) 1 of 5 State Center Community College District Integrated Waste Management Program Revised Attachment 2 (continued) Offsetting Offsetting Savings Realized Savings Review Cost Elements Reported July - December January - June Total Adjustment 1 July 1, 2003, through June 30, 2004 Reedley College: Maximum allowable diversion percentage 25.00% 50.00% Actual diversion percentage ÷ 26.11% ÷ 68.95% Allocated diversion percentage 95.75% 72.52% Tonnage diverted x (203.20) x (316.40) Statewide average landfill fee per ton x $36.83 x $38.42 Offsetting savings, Reedley College (7,166) (8,816) (15,982) Fresno City College: Maximum allowable diversion percentage 25.00% 50.00% Actual diversion percentage ÷ 53.59% ÷ 50.70% Allocated diversion percentage 46.65% 98.62% Tonnage diverted x (176.90) x (189.75) Statewide average landfill fee per ton x $36.83 x $38.42 Offsetting savings, Fresno City College (3,039) (7,190) (10,229) Total offsetting savings, FY 2003-04 $ — $ (10,205) $ (16,006) $ (26,211) $ (26,211) July 1, 2004, through June 30, 2005 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 68.95% ÷ 69.65% Allocated diversion percentage 72.52% 71.79% Tonnage diverted x (316.40) x (324.75) Statewide average landfill fee per ton x $38.42 x $39.00 Offsetting savings, Reedley College (8,816) (9,092) (17,908) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 50.70% ÷ 55.23% Allocated diversion percentage 98.62% 90.53% Tonnage diverted x (189.75) x (187.95) Statewide average landfill fee per ton x $38.42 x $39.00 Offsetting savings, Fresno City College (7,190) (6,636) (13,826) Total offsetting savings, FY 2004-05 $ — $ (16,006) $ (15,728) $ (31,734) $ (31,734) 2 of 5 State Center Community College District Integrated Waste Management Program Revised Attachment 2 (continued) Offsetting Offsetting Savings Realized Savings Review Cost Elements Reported July - December January - June Total Adjustment 1 July 1, 2005, through June 30, 2006 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 69.65% ÷ 69.25% Allocated diversion percentage 71.79% 72.20% Tonnage diverted x (324.75) x (319.80) Statewide average landfill fee per ton x $39.00 x $46.00 Offsetting savings, Reedley College (9,092) (10,621) (19,713) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 55.23% ÷ 55.04% Allocated diversion percentage 90.53% 90.84% Tonnage diverted x (187.95) x (189.75) Statewide average landfill fee per ton x $39.00 x $46.00 Offsetting savings, Fresno City College (6,636) (7,929) (14,565) Total offsetting savings, FY 2005-06 $ — $ (15,728) $ (18,550) $ (34,278) $ (34,278) July 1, 2006, through June 30, 2007 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 69.25% ÷ 67.69% Allocated diversion percentage 72.20% 73.87% Tonnage diverted x (319.80) x (293.35) Statewide average landfill fee per ton x $46.00 x $48.00 Offsetting savings, Reedley College (10,621) (10,401) (21,022) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 55.04% ÷ 51.44% Allocated diversion percentage 90.84% 97.20% Tonnage diverted x (189.75) x (173.10) Statewide average landfill fee per ton x $46.00 x $48.00 Offsetting savings, Fresno City College (7,929) (8,076) (16,005) Total offsetting savings, FY 2006-07 $ — $ (18,550) $ (18,477) $ (37,027) $ (37,027) 3 of 5 State Center Community College District Integrated Waste Management Program Revised Attachment 2 (continued) Offsetting Offsetting Savings Realized Savings Review Cost Elements Reported July - December January - June Total Adjustment 1 July 1, 2007, through June 30, 2008 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 67.69% ÷ 67.69% Allocated diversion percentage 73.87% 73.87% Tonnage diverted x (293.35) x (293.35) Statewide average landfill fee per ton x $48.00 x $51.00 Offsetting savings, Reedley College (10,401) (11,052) (21,453) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 51.44% ÷ 51.44% Allocated diversion percentage 97.20% 97.20% Tonnage diverted x (173.10) x (173.10) Statewide average landfill fee per ton x $48.00 x $51.00 Offsetting savings, Fresno City College (8,076) (8,581) (16,657) Total offsetting savings, FY 2007-08 $ — $ (18,477) $ (19,633) $ (38,110) $ (38,110) July 1, 2008, through June 30, 2009 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 67.69% ÷ 67.69% Allocated diversion percentage 73.87% 73.87% Tonnage diverted x (293.35) x (293.35) Statewide average landfill fee per ton x $51.00 x $55.00 Offsetting savings, Reedley College (11,052) (11,918) (22,970) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 51.44% ÷ 51.44% Allocated diversion percentage 97.20% 97.20% Tonnage diverted x (173.10) x (173.10) Statewide average landfill fee per ton x $51.00 x $55.00 Offsetting savings, Fresno City College (8,581) (9,254) (17,835) Total offsetting savings, FY 2008-09 $ — $ (19,633) $ (21,172) $ (40,805) $ (40,805) 4 of 5 State Center Community College District Integrated Waste Management Program Revised Attachment 2 (continued) Offsetting Offsetting Savings Realized Savings Review Cost Elements Reported July - December January - June Total Adjustment 1 July 1, 2009, through June 30, 2010 Reedley College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 67.69% ÷ 67.69% Allocated diversion percentage 73.87% 73.87% Tonnage diverted x (293.35) x (293.35) Statewide average landfill fee per ton x $55.00 x $56.00 Offsetting savings, Reedley College (11,918) (12,135) (24,053) Fresno City College: Maximum allowable diversion percentage 50.00% 50.00% Actual diversion percentage ÷ 51.44% ÷ 51.44% Allocated diversion percentage 97.20% 97.20% Tonnage diverted x (173.10) x (173.10) Statewide average landfill fee per ton x $55.00 x $56.00 Offsetting savings, Fresno City College (9,254) (9,422) (18,676) Total offsetting savings, FY 2009-10 $ — $ (21,172) $ (21,557) $ (42,729) $ (42,729) July 1, 2010, through June 30, 2011 Reedley College: Maximum allowable diversion percentage 50.00% — Actual diversion percentage ÷ 67.69% ÷ — Allocated diversion percentage 73.87% — Tonnage diverted x (146.68) x — Statewide average landfill fee per ton x $56.00 x — Offsetting savings, Reedley College (6,068) — (6,068) Fresno City College: Maximum allowable diversion percentage 50.00% — Actual diversion percentage ÷ 51.44% ÷ — Allocated diversion percentage 97.20% — Tonnage diverted x (86.55) x — Statewide average landfill fee per ton x $56.00 x — Offsetting savings, Fresno City College (4,711) — (4,711) Total offsetting savings, FY 2010-11 $ — $ (10,779) $ — $ (10,779) $ (10,779) Total offsetting savings: July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011 $ — $ (141,085) $ (151,765) $ (292,850) $ (292,850) ________________________ 1 See Revised Attachment 3, Finding and Recommendation. 2 Reedley College did not achieve the maximum allowable diversion percentage in calendar year 2000; therefore, 100% of the tonnage diverted is offsetting savings realized by the district. 5 of 5 State Center Community College District Integrated Waste Management Program Revised Attachment 3— Finding and Recommendation July 1, 1999, through June 30, 2001; and July 1, 2003, through June 30, 2011 BACKGROUND — On March 25, 2004, the Commission adopted its statement of decision, finding that Public Resources Code sections 40148, 40196.3, 42920- 42928; Public Contract Code sections 12167 and 12167.1; and the State Agency Model IWM Plan (February 2000); require new activities that constitute new programs or higher levels of service for community college districts within the meaning of Article XIII B, section 6, of the California Constitution, and impose costs mandated by the State pursuant to Government Code (GC) section 17514. Specifically, the Commission approved the test claim for the increased costs of performing the following specific activities:  Complying with the model plan (Public Resources Code section 42920(b)(3) and State Agency Model IWM Plan, February 2000);  Designating a solid waste reduction and recycling coordinator (Public Resources Code section 42920(c));  Diverting solid waste (Public Resources Code sections 42921 and 42922(i));  Reporting to the Integrated Waste Management Board (Board) (Public Resources Code sections 42926(a) and 42922(i)); and  Submitting recycled material reports (Public Contract Code section 12167.1). In March 2007, the Department of Finance and the Board filed a petition for Writ of Mandate requesting the Commission to issue new parameters and guidelines that give full consideration to the community colleges’ cost savings (e.g. avoided landfill disposal fees) and revenues (from recyclables) by complying with the test claim statutes. The Judgment and a Writ of Mandate were issued on June 30, 2008, ordering the Commission to amend the parameters and guidelines to require that community college districts identify, and offset from their claims, cost savings realized as a result of implementing their IWM plans. On September 26, 2008, the Commission amended the parameters and guidelines to the original period of reimbursement because the court’s decision interprets the test claim statutes as a question of law. In compliance with GC section 17558, the SCO issues claiming instructions to assist local agencies, school districts, and community college districts in claiming mandated-program reimbursable costs. 1 of 4 State Center Community College District Integrated Waste Management Program REVISED FINDING— The district did not report any offsetting savings on its mandated cost Unreported offsetting claims for the review period. We found that the district realized savings of $292,850 from implementation of its IWM plans. savings The following table summarizes the unreported offsetting savings amounts by fiscal year: Offsetting Offsetting Fiscal Savings Savings Review Year Reported Realized Adjustment 1999-2000 $ - $ ( 10,535) $ (10,535) 2000-01 - (20,642) (20,642) 2003-04 - (26,211) (26,211) 2004-05 - (31,734) (31,734) 2005-06 - (34,278) (34,278) 2006-07 - (37,027) (37,027) 2007-08 - (38,110) (38,110) 2008-09 - (40,805) (40,805) 2009-10 - (42,729) (42,729) 2010-11 - (10,779) (10,779) Total $ - $ (292,850) $ ( 292,850) Section VIII. (Offsetting Savings) of the amended parameters and guidelines states: Reduced or avoided costs realized from implementation of the community college districts’ Integrated Waste Management plans shall be identified and offset from this claim as cost savings, consistent with the direction for revenue in Public Contract Code sections 12167 and 12167.1. Public Contract Code sections 12167 and 12167.1 require agencies in state-owned and state-leased buildings to deposit all revenues from the sale of recyclables into the IWM Account in the IWM Fund, which is continuously appropriated to the Board for the purposes of offsetting recycling program costs. For the review period, the district did not deposit any revenue into the IWM Account in the IWM Fund. We have determined that the district had reduced or avoided costs realized from implementation of its IWM plans that it did not identify and offset from its claims as cost savings. Offsetting Savings Calculation The Commission’s Final Staff Analysis of the proposed amendments to the parameters and guidelines (Item No. 8 – Commission hearing of September 26, 2008) state: …cost savings may be calculated from the annual solid waste disposal reduction or diversion rates that community colleges must annually report to the Board pursuant to Public Resources Code section 42926, subdivision (b) (1). 2 of 4 State Center Community College District Integrated Waste Management Program To compute the savings amount, we multiplied the allocated diversion percentage by the tonnage diverted, and then by the avoided landfill disposal fee, as follows: Allocated Diversion % Maximum Avoided Allowable Landfill Offsetting = Diversion % x Tonnage x Disposal Fee Savings Actual Diverted (per Ton) Diversion % This calculation determines the cost that the district did not incur for solid waste disposal as a result of implementing its IWM plans. The offsetting savings calculations are presented in Revised Attachment 2 – Summary of Offsetting Savings Calculations. Allocated Diversion Percentage Public Resources Code section 42921 requires that districts achieve a solid waste diversion percentage of 25% beginning January 1, 2002, and a 50% diversion percentage by January 1, 2004. The parameters and guidelines state that districts will be reimbursed for all mandated costs incurred to achieve these levels, without reduction when they fall short of stated goals, but not for amounts used to exceed these state-mandated levels. Therefore, we allocated the offsetting savings to be consistent with the requirements of the mandated program. For calendar years 2000 through 2007, we used the actual diversion percentage reported by the district to the Board pursuant to Public Resources Code section 42926, subdivision (b)(1). In 2008, the Board began focusing on “per-capita disposal” instead of a “diversion percentage.” As a result, the Board stopped requiring community college districts to report the actual amount of tonnage diverted. Consequently, the annual reports no longer identify a “diversion percentage.” Therefore, we used the calendar year 2007 diversion percentage to calculate the offsetting savings for FY 2007-08 through FY 2010-11. The district did not provide documentation supporting a different diversion percentage. Tonnage Diverted The tonnage diverted refers to solid waste that the district recycled, composted, and kept out of the landfill. For calendar years 2000 through 2007, we used the actual tonnage diverted, as reported by the district to the Board pursuant to Public Resources Code section 42926, subdivision (b)(1). 3 of 4 State Center Community College District Integrated Waste Management Program As previously noted, in 2008, the Board stopped requiring community college districts to report the actual amount of tonnage diverted. Therefore, we used the tonnage diverted in calendar year 2007 to calculate the offsetting savings for FY 2007-08 through FY 2010-11. The district did not provide documentation supporting a different amount of tonnage diverted. Avoided Landfill Disposal Fee (per Ton) The avoided landfill disposal fee is used to calculate realized savings because the district no longer incurs costs to dispose of the diverted tonnage at the landfill. For each fiscal year in the review period, we used the statewide average disposal fee provided by the California Department of Resources Recycling and Recovery, which was established in 2010 to replace the Board. The district did not provide documentation supporting a different disposal fee. Recommendation The IWM Program was suspended in the FY 2011-12 through FY 2017-18 Budget Acts. Furthermore, commencing in FY 2012-13, the district elected to participate in a block grant program pursuant to GC section 17581.7, in lieu of filing annual mandated cost claims. If the program becomes active again and if the district chooses to opt out of the block grant program, we recommend that the district offset all savings realized from implementation of the community college district’s IWM plans. 4 of 4