Comprehensive Standard 3.10.4: Control over Financial and Physical Resources

The institution exercises control of all its financial and physical resources.

Judgment of Off-Site Review Committee:  Non-Compliance

Comments: The committee reviewed a memorandum from the Office of the State Auditor dated 08/20/2001, which was addressed to the Vice President for Educational Support Services.  This memorandum refers to a draft cash management plan and the need for a final plan approved by the Board.  A copy of this approved plan was not provided, and the relationship of the Vice President for Educational Support Services in financial matters is not identified. 

The on-site committee should review the cash management plan to verify its approval by the Board of Trustees and the Office of the State Auditor.  The on-site committee should also verify that the institution is exercising appropriate control of its financial and physical resources.

College Focused Report:  The Off-Site Committee could not verify that the WCC cash management plan had been approved by the Board of Trustees and the Office of the State Auditor.  However, and as indicated in the following September 25, 2001 WCC Board of Trustees Minutes, the cash management plan in question was approved by the WCC Board of Trustees on September 25, 2001.  An excerpt from the WCC Board of Trustees Minutes for September 25, 2001, approving the final cash management plan reads: 

September 25, 2001           WCC Board of Trustees Meeting Minutes

Among the topics discussed in the Board meeting was the following:

H.  Report of the Finance Committee

Mr. Tim Haithcock reported on behalf of the Finance Committee, which met on September 18, 2001.  Mr. Haithcock recognized Ms. Alice Wadsworth who presented the Summary of Financial Reports.  Included in these reports were the County and State Expenditures, Institutional Funds with Fund Balances and Changes and Transfers through August 31, 2001 and a Summary of Expenditures from Discretionary Funds.  Upon a motion by Mr. Keith Stewart and seconded by Bea Lamb, the Summary of Expenditures from Discretionary Funds (Attachment No. 4 of the Financial Report) in the amount of $143.18 were approved unanimously.

Mr. Haithcock then reviewed the attached Cash Management Plan.  Upon a motion by Mr. Bobby Rex Kornegay and seconded by Mr. Tommy Jarrett, the plan was approved as submitted.

The following May 15, 2001, transmittal letter to the State Controller, signed by the VP for Educational Support Services, Mr. Ken Ritt, included a copy of the WCC cash management plan.  In addition, the Office of the State Controller’s Annual Cash Management Plan Review Checklist, reviewed and approved by the WCC Chief Financial Officer, Ms. Alice Wadsworth, on February 8, 2005, is also included.  The committee also had a question about the supervisory relationship in financial matters between the VP for Educational Support Services and the Chief Financial Officer.  In 2001, the organizational structure of the Educational Support Services Division included the Chief Financial Officer, who was then referred to as the WCC Comptroller and reported directly to the VP for Educational Support Services.  In 2002, the restructuring of the President’s Division resulted in the Chief Financial Officer reporting directly to the office of the President.  

As a result, the college certifies compliance with this comprehensive standard.