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Big Sandy Community and Technical College (BSCTC) exercises appropriate control over all its financial resources as required by the financial related processes outlined in the Kentucky Community and Technical College (KCTCS) Board of Regents Policy 5.0
[1],
5.1
[2],
and 5.4.4
[3],
and in the KCTCS Administrative Policy 5.4.1
[4],
5.4.2
[5],
5.4.3
[6],
5.4.4.1
[7],
5.4.5
[8].
BSCTC's mission statement
[9]
references that the College exists to "Ensure efficient and productive management of the college's human, fiscal, and physical resources." The purpose statement of the BSCTC Business Affairs 2005-2006 Annual Plan
[10]
states the purpose as "to facilitate the efficient operation and management of the human resource services; the financial/budgetary services; the financial assistance services; the security and environmental health services; the food/vending services; and the capital project functions of Big Sandy Community and Technical College in order to facilitate student access, retention and success, and services."
BSCTC has qualified staff to ensure appropriate controls over the fiscal resources. The Business Affairs Organizational charts indicate the names and job classification of employees serving in the Business Affairs area
[11].
The attached chart lists the qualifications of BSCTC's fiscal officer and of others serving in the Business Office, Purchasing, and Human Resources area of Business Affairs
[12].
The job description for each position is accessible through the link listed on the chart.
In support of the KCTCS Board of Regents Policies and the KCTCS Administrative Policies, referenced above, KCTCS has established various Business Procedures
[13]
to manage risk by enforcing appropriate controls over the fiscal and physical resources.
-
Cash Handling Procedures - To reduce the risk regarding cash handling and to strengthen segregation of duties and other internal controls, the following has been implemented:
-
Local Cash Handling Procedures are implemented
[14].
-
Employee and supervisor endorse a Sign-Off Sheet
[15]
[16]
acknowledging receipt of the document.
-
Cash Handling Acknowledgment Receipts are logged
[17]
and maintained in personnel files.
-
Monthly cash counts at all sites by Business Office Personnel
[18].
-
Review of cash journals and cash handling process on a continual basis by a Business Office staff member with no cash handling duties
[19].
-
Purchasing - The College uses a procurement card system as the primary purchasing method for small dollar purchases (maximum limit of $3,000 per transaction). A Purchase Requisition is used to purchase capital equipment ($5,000 or greater), items to be placed on Asset Management Inventory ($1,000 or greater) and High Risk Inventory Items ($500 - $999). The procedures to minimize risk are as follows:
-
The ProCard holder endorses a Sign Off Sheet
[20]
acknowledging that he/she has read and understands the KCTCS JPMC Procurement Card Cardholder Guide
[21]
and KCTCS Business Procedure 4.2 - Procurement Card
[22].
-
A KCTCS Procurement Card Cardholder-Supervisor Agreement
[23]
is also signed by the cardholder and his/her supervisor.
-
Business Office personnel monitor all procurement card transactions in accordance with ProCard Editing Procedures
[24]
and violations
[25]
are issued for non-compliance.
-
All ProCard statements are housed in a central location in the BSCTC Business Office.
-
The most recent ProCard audit on 2/08/07 by Crowe Chizek and KCTCS administrative personnel for the period July 2005 through December 2006 received the highest praise
[26].
Big Sandy set the standard and the College has been asked to share processes for implementation at other colleges within KCTCS.
-
Purchase Requisitions are prepared in accordance with KCTCS Business Procedure 4.3
[27].
The Purchase Requisition form with appropriate approval signatures is submitted to the BSCTC Business Office, for entry into the Peoplesoft financial system.
-
The requisition is approved online by appropriate delegated personnel, reviewed by KCTCS personnel who ultimately submit payment to the vendor. Appropriate logs
[28]
are maintained of all check requests, requisitions, and other purchasing documents.
-
KCTCS Personnel perform compliance audits on purchases made by the Colleges, including BSCTC
[29].
-
Travel - The College maintains control over all BSCTC employee travel expenditures. Business Office personnel are assigned to audit each travel voucher for compliance with KCTCS Travel Procedures
[30].
Also, KCTCS personnel perform compliance audits on travel vouchers for all college's in the system
[31].
-
Food Purchases - Food purchases are made in accordance with KCTCS Business Procedure 1.13 - Employee Meals and Refreshments
[32]
and Business Procedure 1.14 Non-Employee Meals and Refreshments
[33].
A BA50 Form - Working Meals, Refreshments, and Accommodations Report
[34]
is used to document the meal purchase. Food purchase compliance is verified as part of the Procard/Purchasing audit by the annual external firm of Crowe Chizek
[26].
-
Inventory - Inventory is entered tracked and monitored through the Asset Module of the Peoplesoft Financials system in accordance with KCTCS Business Procedures 2.9 for Inventory
[35]
BSCTC maintains an accurate and up-to-date record of its physical inventory
[36].
Inventory is audited
[37]
on an annual basis by KCTCS personnel, and is reviewed as part of the system audit.
-
Budget - Employees who have budgetary responsibilities have access to account information via PeopleSoft Financials module. In order to ensure that appropriate expenses are being charged to appropriate budgets, monthly budget reconciliations are prepared by staff and reviewed and approved by supervisors. The reconciliation (including the Peoplesoft budget report, the BSCTC budget template, and the reconciliation template)
[38]
is submitted to the BSCTC Business Office by each budget head on a monthly basis. BSCTC Business Office staff offer workshops at least annually to train employees on updated business procedures and on accessing financial reports in PeopleSoft
[39].
-
Payroll - BSCTC has appropriate segregation between the Payroll and Human Resources functions of the College as evidenced on the BSCTC Organization Chart
[40].
BSCTC adheres to the KCTCS Business Procedures 5.1 - 5.12
[41]
regarding payroll processes.
-
Human Resources - BSCTC follows the KCTCS Administrative Policies and Procedures, Section 2
[42]
for hiring practices. Also, BSCTC has developed local procedures for the employment of BSCTC personnel
[43].
-
Financial Aid - The Financial Aid Department at BSCTC is under the organization structure of the Business Affairs area. BSCTC's financial aid transactions and processes are audited as part of the2005-06 KCTCS A-133 (federal aid programs) audit by the independent firm of Crowe Chizek LLC. During the 2005-06 A-133 audit
[44],
BSCTC had two citations. However, these were not material citations and processes have been implemented to ensure citations do not occur in the future.
BSCTC manages deferred maintenance in conjunction with KCTCS Facilities Management. Priorities are established through the Strategic Needs Analysis (SNA) process and through the regional KCTCS Facilities Management resource representative. Priorities are reviewed and finalized at the executive level with the President's Leadership Team
[45]
before submission to KCTCS.
Endowment policies and sample reports are included in Comprehensive Standard 3.10.1 and Foundation fund-raising efforts are further explained in Comprehensive Standard 3.2.2.4.
Documentation of budget reporting to the appropriate constituencies, including members of the Board, is accomplished through a variety of means to include budget updates at the quarterly BSCTC Board of Directors meeting
[46],
periodic President's Leadership Team meetings
[47],
and KCTCS Board of Regents meetings
[48].
Further budget details are included in Core Requirement
2.11.1.
Audit:
In addition to the audits and compliance checks referenced above, KCTCS is audited annually by an independent firm, Crowe Chizek LLC. KCTCS colleges (including BSCTC) are included in each year's audit. The 2005-06 audit includes a review of many of the processes listed above. The 2005-06 Annual (audited) Financial Statements
[49]
and the 2005-06 Audit Management Letter
[50]
are evidence of the audit.
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