Southeast Kentucky Community and Technical College Online Compliance Certification
Judgment of Compliance |
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X |
Compliance |
Partial Compliance |
Non-Compliance |
NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE
Southeast Kentucky Community and Technical College (SKCTC) has a variety of procedures and reports that demonstrate adequate control over the college’s financial and physical resources.
At the beginning of every year, each department head and their assistant receive a computer generated copy [1] of his/her annual budget from the college’s business office. To assist them in managing their accounts, monthly reports are either emailed or available for viewing through a local server access as soon as all month-end entries are posted. The business procedures [2] that govern the business activity at SKCTC include policies for purchasing, inventorying, records retention for financial activities, ensuring physical resources, cash handling procedures, MOAs, and contracts, as well as delegation of authority for purchases and budget approval. The delegation of authority [3] is reviewed annually by the President and Dean of Business Affairs (see delegation of authority documentation). The college cash handling procedures are tailored to the college’s business operations [4].
The purchasing procedures followed by SKCTC are in accordance with Kentucky Law [5]. The purchasing office at Kentucky Community and Technical College System (KCTCS) negotiates all vendor contracts and signs off on all leases. Each college within KCTCS is delegated specific purchasing authority according to the KRS and KCTCS purchasing procedures.
SKCTC issues procurement cards to various College personnel for official college purchases. When a new card is issued, the cardholder and his/her immediate supervisor sign a cardholder and supervisor agreement. SKCTC cardholder and supervisors are accountable for purchases and must provide original receipts with their monthly statements. The reports are reviewed and signed by both cardholder and supervisor. These structured procedures minimize the possibility of fraudulent use and protect the resources of the Institution. Records are retained for audit purposes.
All travel documents submitted for reimbursement are reviewed by a college and KCTCS travel auditor. Immediate supervisors must sign off on all travel. The College President must give approval prior to the trip, and a separate out-of-state travel form documenting the purpose for the trip must accompany the reimbursement form.
The administrative software used by all colleges in KCTCS is PeopleSoft. To gain access to the PeopleSoft Financials, a request for access form [6a] (denoting the specifics of access required) must be completed and signed off by the Dean of Business Affairs prior to access being granted [6b]. Likewise Access to PeopleSoft Student Financials requires a written request from the Dean of Business Affairs to the PeopleSoft Student Security Administrator [6c]. The PeopleSoft HR/Payroll system access requires that a request for access form be completed and approved by the Dean of Business Affairs. All PeopleSoft users are instructed to keep their login and password secure. When employees are terminated, their access is deleted from the PeopleSoft System automatically through KCTCS’ active directory.
New employees are required to sign a Computer Usage policy [7a] and a Driver’s Certification form [7b].
Segregation of responsibilities is a key component to safeguarding the College and its employees. Segregation of duties between Human Resources and Payroll, Billing and Accounts Receivable Module, and within the Student Financials Module exists to prevent fraud and create a check and balance system [8].
A physical count of all inventoried assets is completed annually [9]. The inventory for assets valued at $5,000 or greater is completed by March 15, and inventoried assets report is due on June 30.
Other mechanisms that are used to control and protect the college’s financial and physical resources include long distance telephone access codes, copy codes, individual vehicle mileage logs, and odometer entry for auto fuel cards.
In summary, SKCTC exercises appropriate control over all its financial and physical resources.
