Section III: Comprehensive Standards (Resources: Financial and Physical Resources)

3.10.4.  The institution exercises appropriate control over all its financial and physical resources.

JUDGMENT OF COMPLIANCE

Compliance.

NARRATIVE/JUSTIFICATION FOR JUDGMENT OF COMPLIANCE

Northeast Alabama Community College demonstrates compliance in exercising appropriate control over all its financial and physical resources.

Northeast has established and continually maintains effective internal controls of financial resources as required by laws, regulations, contracts, and grants applicable to state and federal programs.  The application and effectiveness of these controls are a part of the annual audit by the Department of Examiners of Public Accounts.

Funds are controlled by budgets developed by each department and administrative office.  Each faculty member has input to these budgets, which are compiled by the division chair and are combined into the institutional budget as described in the 2002-2003 Faculty & Staff Handbook.  Monthly reports to each division chair and administrator contain expenditures to date and funds available in each expenditure category for the division or office.  Requests for any expenditures above budgeted amounts must be approved by the president.

All purchasing requires prior approval by a purchase order request signed by the President and the Dean of Administrative Services. Approved purchase orders are processed and merchandise ordered by the Business Office purchasing clerk. All checks issued by the institution for any reason require the signatures of both the President and Dean of Administrative Services.  Purchases of goods and services exceeding $7,500 require a bid. All other services are by contracts approved by the President.

Northeast maintains only $200 in petty cash funds. All college funds are held by financial institutions in the State of Alabama’s Security for Alabama Funds (SAFE) Program described in the auditor’s report, “Report on the Northeast Alabama Community College, October 1, 2001 Through September 30, 2002.” 

Northeast owns and controls access to all physical facilities of the institution in accordance with policies of the Alabama State Board of Education. Use of the facilities by state and local organizations is by permission of the President of the institution. Local civic organizations and county school systems utilize the facilities for seminars, in-service programs, drama productions for elementary schools, and community forums. 

Access to electronic data files is controlled by user identification and passwords, menu option controls, and file authorization lists maintained on the computer.

Policies are in effect for use of audiovisual services, telecommunications, and photocopiers; for securing of supplies; participation on the college Web page; use of the college name; instructor handling of student funds; fund-raising; property accountability; instructor liabilities; and solicitation and sales on campus. Additional policies address procedures for requesting paid leave and school business travel.

Annual contracts signed by personnel require commitment of full attention to job requirements during on-duty time.  Individual schedules are required of all personnel and are updated annually or as changes occur.

State Board policies are in effect authorizing the institution to manage its own funds responsibly (301.01); to maintain property and liability insurance (310.02); and to retain ownership of copyrighted or trademark materials and patented inventions developed totally or partially on college time with the use of college materials or facilities or with college funding (321.01).

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