That's 11 million out of a budget of 19 billion California community college budget. That's 0.058%. In business, if you have less than 0.1% losses by fraud that's considered outstanding financial control.
Of course, that's not all the potential fraud in the system, I'm just saying finding 11 billion dollars of novel fraud is not prima facie evidence that the system is poorly run from a financial standpoint given the enormous size of the system.
If you just focus on financial aid, the state disburses $2.8 billion to community college students. 11 million amounts to a fraud rate of 0.39% in that program. This is still fairly low, although it's in the "room for improvement" range. That's a normal place for a program to be when a new paradigm for fraud emerges: when that happens it's time to put in more controls.