COMPLIANCE AUDIT REPORTS

Section 3: Comprehensive Standard 3.10.4

The institution exercises appropriate control over all its financial resources.

Statement of Compliance: Dyersburg State Community College is in compliance with Comprehensive Standard 3.10.4.

Rationale for Judgment of Compliance:

Dyersburg State Community College (DSCC) exercises appropriate control over all its financial resources in accordance with the Tennessee Board of Regents (TBR) Policy on Budget Control. All DSCC divisions and departments have a role and responsibility to ensure compliance with TBR policy under the guidance of the Vice President for Finance and Administrative Services and under the direction of the President [Ref 1].

After approval by TBR, budget managers have online access to their current budget, encumbrances, and actual expenditures [Ref 2].

TBR policy defines level of budget control for the major educational and general functional classifications and for educational and general transfer amounts, both mandatory and non-mandatory. This policy further defines the types of revisions which must be approved by the DSCC President or TBR Chancellor [Ref 3] [Ref 4] [Ref 5].

In the event there is a mid-year adjustment in state appropriations of significant impact on the operations of the College, a budget reduction plan that is recommended by the DSCC Budget Advisory Committee and approved by the President is implemented.

Part of DSCC fiscal responsibilities include the management of numerous grants and contracts that subsidize the overall budget for funding of special activities and acquisitions. Refer to the narrative for Comprehensive Standard 3.10.5.

As stipulated by TBR policy [Ref 6], DSCC maintains a purchasing policy and procedures [Ref 7] that align procurement of goods and services with TBR purchasing policy and procedures.

DSCC’s policy is to have funds in excess of those required for current operating to be on deposit in the DSCC Local Government Investment Pool (LGIP) account [Ref 8]. All appropriation deposits and withdrawals for the College are processed by TBR through the College’s account, which allows funds to remain invested until needed. Such funds are invested in consideration of the preservation and safety of the principal and its liquidity and yield. Investment of funds is made in accordance with TBR policy [Ref 9].

DSCC’s budget policies and guidelines ensure that budgets are not exceeded. The Vice President for Finance and Administrative Services prepares monthly summary reports [Ref 10] for review by the President to evaluate the current financial status of DSCC. TBR staff review the annual financial report for compliance with budget guidelines and Board policy, comparison with the spring budget, and expenditure totals [Ref 11]. Additional control over DSCC financial and physical resources is provided by external audit processes. In compliance with TBR policy, DSCC employs an internal auditor [Ref 12] [Ref 13] [Ref 14]. Budget managers review and approve purchase requisitions as well as travel and check requests for the fiscal year. On an ongoing basis the Vice President for Finance and Administrative Services monitors all requests for expenditures to insure funds are available. The Vice President for Finance and Administrative Services prepares a monthly report for the President that provides information on year-to-date spending compared to budget.

Every two years, the records of DSCC are audited by the State of Tennessee Comptroller’s Office, Division of State Audit, to determine compliance with TBR and federal and state laws. The audit includes a review of purchasing, payables, human resources and property control. The audit also includes an analysis of variances between budgets and actual expenditures. DSCC has received no findings in the FY 2002-2003 and FY 2003-2004 audits. The auditors’ report at the field exit conference on February 12, 2007 indicated that there would be no findings for FY 2004-2005 and FY 2005-2006.

Authored by Ms. Velma Travis in coordination with the SACS Leadership Team

Documentation: