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3 golden objects Minnesota Legislature

Office of the Legislative Auditor - Financial Audit Division

Report Summary
Community College System

Selected Scope Financial Audit

For the Year Ended June 30, 1993


Public Release Date: September 2, 1994 No. 94-42

Agency Background

The Community College System is made up of 18 campuses and 3 centers located throughout the state, pursuant to Minn. Stat. Section 136.60. The community college system office oversees the activities of the colleges and provides central support. Dr. Geraldine Evans is the current chancellor of the Community College System.

Selected Audit Areas

Payroll Expenditures

The Community College System expended nearly $136 million on salary and fringe benefits during fiscal year 1993. Payroll expenditures are the largest component of the Community College budget, using 58 percent of its resources. Unclassified employees, consisting of administrators, professional staff, and faculty, accounted for 77 percent of payroll expenditures.

Overall, we found that the Community College System properly accounted for and controlled its payroll expenditures. In particular, we found that the system maintained effective controls for regular time worked, the most significant factor affecting payroll costs. However, we found some weaknesses with the processes for recording certain types of pay and earnings codes. We also cited the need to reevaluate the use of overtime on some campuses. We found a case where a former Mesabi Community College faculty member had been overpaid by about $2,000 in severance pay. Finally, we found a conflict of interest involving an appointment at Duluth Community College Center.

Repair and Replacement Expenditures

The Community College System annually allocates a small portion of its operating appropriation to individual campuses for funding minor repair and replacement projects. In fiscal year 1993, the system allocated slightly more than two million dollars for these projects. Major capital projects are funded through the state's capital budget process.

We found that the system allocated repair and replacement funds in accordance with board policies. We found that these funds were properly administered and controlled.

Appropriation Allocation Process

We updated our previous analysis of the system's carry forward of appropriation allocations. At the end of fiscal year 1993, the Community College System carried forward $15,255,091, or approximately 10 percent of its available resources. This represents a $651,356 reduction from the amount carried forward in the previous year.