Summary

The operational audit for the fiscal year ended June 30, 2006, disclosed the following:

Finding No. 1:        The College did not always document the basis for laboratory fees and demonstrate compliance with administrative procedures established for determining such fees.

Finding No. 2:       The College had not established written policies and procedures regarding collections for its Child Development Center and Lab School, and late fees were waived without evidence of Board approval.

Finding No. 3:       College records did not always evidence justification for cellular telephones (cell phones) provided to employees.  Also, the College did not report to the Internal Revenue Service the value of cell phone services as income for employees that did not make an adequate record of the business use of their assigned cell phones.

Finding No. 4:       College procedures for making payments to construction contractors did not address amounts to be retained and the condition of final payment of the amount retained.

Finding No. 5:       College payments to a construction manager for certain costs were not supported by adequate documentation, such as time sheets or vendor invoices. 

The College's response is included as Appendix B of this report.