The committee examined reports on internal control from the institution's independent auditor as incorporated in its audit reports. Additionally, the committee reviewed interim financial statements utilized by the institution's management in the exercise of control over its financial resources. The auditor's report on internal control from the FYE 2005 audit report documented lapses in internal fiscal controls that, in the auditor's opinion, warranted reporting to the institution's governing body.
The institution submitted no evidence of its effective control over physical resources. Examples of such evidence might include excerpts from the institution's equipment inventory listing, annual inventory sheets from various asset custodians or managers, or correspondence by the state's Community College system acknowledging receipt and review of the institution's equipment audit reports. The On-Site Review Committee should confirm that the institution exercises appropriate control over its physical resources.
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The college maintains appropriate control over its Physical Resources. The college's Campus Access and Facility Use Policy provides information to college employees, students, and members of the public about the use of college facilities. In addition it indicates the proper procedure to request use of the facilities. The college also performs an annual inventory of all equipment as required by the N.C. Community College System Office. Each department is sent a computer printout listing equipment assigned to their area. The department is required to compare the computer printout listing the inventory to the actual equipment on hand, make notations of the items located, items not located and to list items not reflected on the inventory.
When all departments have completed physical comparison of the inventory listing to the actual equipment on hand for their area, the computer printouts are sent to the equipment coordinator for compilation. All of the computer printouts are combined to compile a listing of any equipment not located. A listing of missing equipment is then disseminated to all employees, requesting help to locate the missing equipment. After an effort by everyone to locate the equipment a final listing of missing equipment is prepared. A report is completed and forwarded to the North Carolina Community College System (NCCCS) office summarizing the inventory. The summary report for the fiscal years 2004-05, 2003-04, and 2002-03 are attached. Reports are also sent to the (NCCCS) office about adjustments to the inventory (these are in chronological order from earliest to latest). The System reviews the report submitted by the college, compares it to the Community College system average for losses, and reports whether the college is above or below the system average.
Except for the fiscal year 2003-04 in which Craven Community College was above the System average in missing items, Craven has been below the system average with respect to numbers of items lost and cost of items lost. Based on the 2003-2004 data and comparison with other colleges, the System Office recommended the college review the current procedures for controlling and securing equipment and, where necessary, implement changes that will ensure more adequate control and security.
Through the reporting of the data for the 2003-2004 report, the purchasing agent for the college, responsible for inventory control, realized this was an issue deserving attention. As a result, he developed an enhancement goal in 2003 as part of the 2003-2005 strategic planning process to reduce the college's losses from inventory, which were then cited in the 2005 letter about the college's spring 2004 inventory report. In 2005, with increased tracking assistance for computers from the Technology Services Division (IT technical support area on campus), Craven's inventory losses were reduced. As a result of this data driven planning process, Technology Services has developed a database to keep track of moved computers.
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