The City University of New York (CUNY) failed to properly track or justify the use of nearly $18 million in state funds intended to lower student textbook costs through Open Educational Resources (OER), according to a state audit released by Comptroller Thomas P. DiNapoli’s office.
The audit examined CUNY’s administration of $24 million allocated between 2018 and 2023 to expand OER across its 25 colleges. While the initiative aims to save students money and increase access to learning materials, auditors found major gaps in oversight, documentation, and reporting.
Of the total funding received, CUNY could not account for $7.1 million and failed to provide supporting documentation for another $10.6 million in reported expenses. The audit also found $238,094 in questionable or unsupported purchases, including subscriptions, software training, and computer equipment not directly tied to OER.
“This lack of accountability undermines the transparency and effectiveness of a program designed to reduce educational barriers,” auditors wrote.
CUNY also struggled to reliably label OER courses as “Zero Textbook Cost” (ZTC) in its registration system, CUNYfirst. Auditors identified mislabeled or missing designations that could mislead students and inflate public reports of student savings.
The university reported that 46,608 course sections had been converted to OER by Fall 2023, saving students $108 million. But the audit questioned the accuracy of those figures, noting that CUNY includes all ZTC courses in its calculations—regardless of whether they were developed using state OER funds.
Faculty engagement presented another challenge. Some professors were unaware of available funding or reluctant to participate due to quality or copyright concerns. Others were reportedly not informed that compensation was available for converting courses.
The audit called for a full review of all questionable expenditures, improved documentation policies, and enhanced faculty outreach. It also recommended accurate reporting of student cost savings and course labeling.
In response, CUNY acknowledged the need for better tracking and announced new policies to improve oversight, including requiring campus budget offices to verify OER expenditures. However, university officials disputed parts of the audit, defending broader uses of the funding and the integrity of their reporting process.
Despite the disagreements, the Comptroller’s Office stood by its findings. “Without documentation that details actual expenses, there is no assurance that funds were used for the OER program as reported,” auditors said.
CUNY must report back within 180 days on its corrective actions.
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