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Comprehensive Standards 3.10.4

The institution exercises appropriate control over all its financial and physical resources. (Financial and Physical Resources)

compliance

Summary

Cape Fear Community College (CFCC) demonstrates compliance with this comprehensive standard by exercising appropriate control over its financial and physical resources. For every year since the last SACS reaffirmation, the College was found in compliance with its internal controls and received no findings or concerns in its financial audits as stated in its reports issued from the North Carolina (NC) Office of the State Auditor. The College follows its approved Cash Management Plan in its handing of receipts, deposits, investments, and expenditures of all funds. CFCC has formalized purchasing policies that are followed regardless of funding sources and has stringent equipment inventory controls. The Board of Trustees approves the College’s budget resolution and is kept apprised of the College’s finances at their bimonthly meetings. The CFCC President establishes a state budget reserve at the beginning of each fiscal year to make sure funds are available for reversions to the State and/or to meet unexpected expenses.

Narrative

Cape Fear Community College exercises appropriate control over its financial and physical resources. The College performs an audit of its internal controls annually. The NC Office of the State Controller provides the review document, Self-Assessment of Internal Controls. This document is available in the CFCC Controller’s Office for review. The College provides the results to the Office of the State Controller (Confirmation of Self-Assessment of Internal Controls). The internal review as of June 30, 2005 found no inadequate internal controls. In addition, the financial auditors with the NC Office of the State Auditor have found no inadequacies in the College’s internal controls for the last eleven audits.

CFCC has a cash management plan as approved by the Board of Trustees (July 25, 2001 Board Minutes pg 4) that was submitted to the NC Office of the State Controller (OSC). It was approved by the OSC on July 26, 2001 and reviewed on March 14, 2005 (Cash Management Plan Review Checklist). It covers the timely deposit of receipts, investments with the State Treasurer, collections, handling federal funds, and disbursements. All check disbursements require the signatures of the College President and the Vice President of Business Services (Cash Management Plan). All check stock and blank checks are secured, the check signature plate is locked in the safe in the Business Office, and check logs are maintained and reviewed for all checks written to account for all check numbers.

The College has formalized policies for purchasing (Purchasing Guidelines). These guidelines are available on the CFCC Intranet and are incorporated in the CFCC Faculty/Staff Handbook. Compliance of these guidelines insures financial control of obligating college funds and adherence to purchasing policies set by the State of North Carolina.

Stringent equipment inventory control is essential at the College. Acquisitions, disposals, and transfers of equipment are recorded in the equipment inventory database. Department heads perform an inventory annually and provide the results to the equipment inventory technician. The technician performs random audits for verification. Results of the inventory are provided to the North Carolina Community College System (NCCCS). NCCCS reviews the inventory results and provides an audit report to the College President (Audit Report ). The audit results are provided to the CFCC Board of Trustees (May 26, 2005 Board Minutes pg 6).

The CFCC Board of Trustees approves the Budget Resolution (September 23, 2004 Board Minutes pg 4) as required by North Carolina General Statute, Chapter 115D-54 and General Statute, Chapter 115D-56 (NCGS 115D-54) (NCGS 115D-56). In addition, regular budget reports are provided to the Board of Trustees at their bimonthly meetings. Budgets are allocated by budget line item once approved. Departmental budget reports are distributed monthly to the appropriate budget managers. Budget managers may request funds from the budget reserve (Budget Reserve Budget Revision Request Form) and have some flexibility in requesting budget transfers (Budget Revision Request). All budget managers are required to perform a mid-year budget review. The purpose of the review is to determine if a department has surplus funds that can be returned to the budget reserve or if additional funds are needed. Budget managers are directed to submit all purchase requisitions by April 15. The unencumbered balances are expended as directed by the President with input provided by senior staff from all divisions, for example, to purchase new equipment, library books, and advertising to boost student enrollment.

Other documents available are:
Equipment Audit Report for Fiscal Year 2002-03
Equipment Audit Report for Fiscal Year 2001-02

Documentation

Source Location

Confirmation of Self-Assessment
of Internal Controls,

CFCC Business Office

confirm_selfassess_internal_controls.pdf

Board Minutes,
CFCC Board of Trustees Minutes
July 25, 2001 (pg 4)

bot_minutes072501.pdf

Cash Management Plan Review Checklist,
CFCC Business Office

cash_mgmt_plan_rev_cklst.pdf

Cash Management Plan,
CFCC Business Office

cfcc_cash_mgmt_plan.pdf

Purchasing Guidelines,
Cape Fear Community College Intranet
purchasing_guidelines.pdf
Audit Report,
Equipment Audit Report
for Fiscal Year 2003-04
equip_audit_rpt2003_04.pdf
Board Minutes,
CFCC Board of Trustees Minutes
May 26, 2005 (pg 6)
bot_minutes052605.pdf
Board Minutes,
CFCC Board of Trustees Minutes
September 23, 2004 (pg 4)
bot_minutes092304.pdf
NCGS 115D-54,
North Carolina General Statute, Chapter 115D-54
ncgs115D_54.pdf
NCGS 115D-56,
North Carolina General Statute, Chapter 115D-56
ncgs115D_56.pdf
Budget Reserve Budget Revision Request Form budget_reserve_rev_request.pdf
Budget Revision Request Form budget_rev_req.pdf
Equipment Audit Report
f or Fiscal Year 2002-03
equip_audit_rpt2002_03.pdf
Equipment Audit Report
for Fiscal Year 2001-02
equip_audit_rpt2001_02.pdf
Self-Assessment of Internal Controls Hard Copy in CFCC Business Office

 

 

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