Nunez Community College Lacking in Controls Related to Payroll, Banking, Purchasing, Tuition

Auditors evaluating Elaine P. Nunez Community College’s internal financial systems found problems varying from improper retroactive pay raises to inadequate controls over payroll records and bank accounts to non-compliance with state purchasing regulations, the Legislative Auditor said in a report released today.

Among their findings, auditors noted that Nunez officials gave two unclassified employees retroactive pay raises totaling $79,691, in violation of the Louisiana Constitution, the state auditor said. In addition, because of a lack of adequate controls over payroll records, one employee was underpaid by $22,150, two employees who held both a primary and an adjunct position recorded overlapping hours on time and attendance records, and other time and attendance records could not be located or did not have proper approvals.

The community college also did not have adequate controls in place over its bank accounts. Auditors identified bank reconciliations that did not reconcile, did not have evidence of management review, indicated management approval more than a year past the month being reconciled, or indicated completion before the end of the month being reconciled. Problems also included a failure to deposit monies collected in a timely manner and inadequate review of deposit transactions.

Auditors found as well that officials did not have adequate controls in place over the computer system that processes transactions and maintains data related to student records and registration, financial aid, human resources, payroll, and financial operations. In addition, the college failed to comply with state regulations governing the purchase of goods and services and did not provide complete contract reports to the Louisiana Community and Technical College System Board Office, as required by LCTCS policy.

Officials also did not maintain adequate controls over the assessment and refunding of student tuition and fees, which resulted in undercharges and overcharges to students. Auditors found, too, that officials were unable to provide records documenting that the reduced tuition rates some students paid were sufficient to cover the costs of instruction, as required by its policy.