COMPLIANCE AUDIT REPORTS

Section 3: Comprehensive Standard 3.2.2

The legal authority and operating control of the institution are clearly defined for the following areas within the institution’s governance structure:

3.2.2.1           institution’s mission;

3.2.2.2                      fiscal stability of the institution;

3.2.2.3                         institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services; and

3.2.2.4                         related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs.

Statement of Compliance: Dyersburg State Community College is in compliance with Comprehensive Standard 3.2.2.

Rationale for Judgment of Compliance:

The legal authority and operating control of the institution are clearly defined for each of the components of this Comprehensive Standard as discussed below.

3.2.2.1 Institution’s mission. Approval of the Dyersburg State Community College (DSCC) mission statement is evidenced by the letter of approval from the Tennessee Board of Regents (TBR) Chancellor [Ref 1].

3.2.2.2. Fiscal stability of the institution. Tennessee Code Annotated [Ref 2] gives guidance to TBR with regard to (1) approval of operating and capital budgets of the institutions, (2) receiving donations of money, securities and property, (3) the power to purchase land subject to the terms and conditions of state regulations, and (4) approval of loans, issuance of bonds or notes. TBR policy [Ref 3] delegates operating control of the institution to the President, who is charged with “promoting the efficient operation of the institution and is responsible to the Board for the operation and management of the institution and for the execution of Board directives.” The DSCC organizational chart is further evidence of operating control within the institution [Ref 4].  Budget control at DSCC is specified by TBR policy [Ref 5], which provides “clear and specific responsibility for proper budget management and control among the institutions.” The policy addresses the definition of budget, submission and revision of budgets, operating budgets, plant fund budgets, guideline and position controls, legislative controls, budget control, and follow-up. The audit conclusions for years ended June 30, 2004, and June 30, 2003, indicated that the Division of State Audit has rendered unqualified opinions on the College’s financial statements and the audit report contained no findings [Ref 6]. The audit report is evidence of the fiscal stability of DSCC.

3.2.2.3 Institutional policy, including policies concerning related and affiliated corporate entities and all auxiliary services. State law allows the institution to “maintain bank accounts in their own names and to draw vouchers and checks for their expenditures through their own disbursing officers to maintain their own fiscal procedure under rules and regulations prescribed by the State University and Community College System…” [Ref 7]. Transactions with related and affiliated corporate entities and auxiliary services are guided by TBR guideline and DSCC policy [Ref 8]. The DSCC Foundation and the DSCC Alumni Association are affiliated entities at DSCC and are discussed in 3.2.2.4. The only auxiliary service at DSCC is the bookstore [Ref 9].

3.2.2.4 Related foundations (athletic, research, etc.) and other corporate entities whose primary purpose is to support the institution and/or its programs. TBR policy guides relationships between DSCC and any entity whose primary purpose is to support the institution and/or its programs [Ref 10]. Relationship between DSCC and the DSCC Foundation is guided by the agreement, charter and bylaws [Ref 11]. The DSCC Alumni Association is guided by a set of bylaws [Ref 12].  The DSCC Foundation and the DSCC Alumni Association are the only two affiliated entities at DSCC.

Authored by Dr. Karen A. Bowyer in coordination with the SACS Leadership Team

Documentation: