Summary

Our operational audit for the fiscal year ended June 30, 2006, and selected actions subsequent thereto, disclosed the following:

Finding No. 1:        The College had not provided for an adequate separation of duties regarding electronic transfer of funds.

Finding No. 2:       College controls over student accounts receivable needed improvement.  Our tests disclosed instances in which students who had not paid for classes or received authorized deferments were allowed to attend the classes, and instances in which academic holds were not timely placed on records of students with overdue accounts.

Finding No. 3:       The College needed to improve its controls over the purchasing card program.  Our tests disclosed instances in which purchases appeared to represent split purchases to avoid exceeding the established single purchase limit, and instances in which purchases were not in accordance with prescribed College policies and procedures.

Finding No. 4:       College policies and procedures did not provide for adequate monitoring of cellular telephone (cell phone) usage.  Also, the College did not report to the Internal Revenue Service the taxable value of cell phone services as income for employees who did not make an adequate accounting of the business use of their assigned cell phones for calendar year 2005.  Effective in August 2006, the College discontinued providing cell phones to individual employees, but began paying certain College employees salary supplements to cover the cost of cell phone plans; however, the new procedures had not been approved by the Board. 

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