COMPLIANCE AUDIT REPORTS

Section 3: Comprehensive Standard 3.10.5

The institution maintains financial control over externally funded or sponsored research and programs.

Statement of Compliance: Dyersburg State Community College is in compliance with Comprehensive Standard 3.10.5.

Rationale for Judgment of Compliance:

Dyersburg State Community College (DSCC) maintains financial control over externally funded or sponsored research and programs. As a community college, DSCC does not participate in sponsored research activities.

The financial control of applications involving external funding is divided between pre-award and post-award processes.

Pre-award Process

All proposals for external funding follow the guideline for grant proposal submission [Ref 1]. The grant writer works closely with the Vice President for the College and/or the Vice President for Institutional Advancement in preparation of the proposal. The business office assists the writer with budget development and identifying matching funds [Ref 2]. Before submission of the proposal to the President for final approval, the Vice President for the College, the Vice President for Finance and Administrative Services, the Vice President for Technology, and the Vice President for Institutional Advancement review a checklist [Ref 3] verifying the ability of the College to commit to obligations for cost-sharing, facilities or matching funds, and whether the proposed project complies with federal and state regulations, College policies, and the mission of the institution. The appropriateness of the budget for the project is examined, and modifications in the proposed budget may occur during this process. Subsequently the proposed project is submitted for the President’s approval and signature.

  Post-award Process

Projects are conducted in accordance with the terms of the written agreement or contract between the College and the external sponsor. The Vice President for Finance and Administrative Services and the Business Office are responsible for budget control and accounting of funds generated from external grants and contracts. The Vice President for Institutional Advancement receives copies of grants, and the Vice President for Finance and Administrative Services receives contract agreements in order to monitor compliance with state and federal laws and DSCC fiscal practices. All policies and internal control procedures are applied to external funding. Separate accounting for each individual grant or contract is established within DSCC’s financial accounting and management information system [Ref 4].

DSCC manages contracts and grants in compliance with TBR Guideline G-030 General Instructions on Form and Execution of Contracts [Ref 5], OMB Circular A-21 Cost Principles for Educational Institutions, OMB Circular A-87 Cost Principles for State, local and Indian Tribal Governments, OMB Circular A-110 Uniform Administrative Requirements for Grants and Agreements [Ref 6].

DSCC is required to submit an annual Schedule of Expenditures of Federal Awards and a Supplementary Information Schedule to the Tennessee Department of Finance and Administration, Division of Accounts, Reporting Section [Ref 7]. There was a Federal audit of the DSCC Financial Aid program in 2005. Audit findings were corrected, and DSCC was found to be in compliance [Ref 8].

Periodic reviews of grants and contracts are administered by the Tennessee Department of Labor and Workforce Development [Ref 9].

DSCC calculated an indirect cost rate for the institution. This rate was approved by the Director of the Division of Cost Allocation of the U.S. Department of Health and Human Services [Ref 10].

Externally-funded projects, including Foundation funding, are audited as part of TBR policies [Ref 11] [Ref 12]. DSCC is not listed as receiving any findings in the reports for FY 2004 and 2003 [Ref 13]. The auditors indicated at the field exit conference on February 12, 2007 that there would be no findings for FY 2004-2005 and FY 2005-2006. The final audit report will be available in mid-April 2007.

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

Documentation: