PREVIOUSLY REVIEWED BY:

 ACOP

 WDS Advisory Council

 WES Project Steering Committee RESOURCE PERSONS:

Dr. Craig Herndon Vice Chancellor

Workforce Development Services

[email protected] 804-819-4782

Mr. George Sherman WES Project Director

Workforce Development Services

Assistant Vice Chancellor, Research and Evaluation Workforce Development Services

BACKGROUND:

As part of the new six year planning process for higher education institutions launched by

SCHEV in implementation of Top Jobs 21 (TJ21) legislation, the development of the revised Six Year Plan document is now under way. It is anticipated that submission of the plan for

Virginia’s Community Colleges, which has both academic and financial components, will occur during the early summer. The State Board for Community Colleges will have an opportunity to review, revise, and approve the plan at its May meeting in order to facilitate submission of the plan to SCHEV.

RECOMMENDATION:

This is an information item. No action is required. RESOURCE PERSONS:

Dr. Susan S. Wood, Vice Chancellor for Academic Services & Research, [email protected], 804.819.4972

BACKGROUND:

The Virginia Community College System (VCCS) implemented the PeopleSoft Absence Management Module (AM) in March 2011. For fiscal year ending June 30, 2012, 13 colleges and the System Office chose to use VCCS customized reports provided in the new AM module to report leave liability in the system-wide financial statements. The remaining colleges chose to continue with their current leave accounting process in determining leave liability.

Internal Audit performed a review to determine if the leave liability reported on the AM customized reports for the fiscal year ended June 30, 2012 was reasonable for the 13 colleges and the System Office. Total leave liability on the financial statements for the VCCS is approximately $31 million each year and is considered material to the statements. The 13 colleges and the System Office that utilized the AM leave liability process represented a large portion of the total leave liability amount; therefore, Internal Audit analyzed and evaluated the reasonableness of leave liability based on the new AM processes.

The colleges using the new AM leave liability reports and included in the review were: 1. Blue Ridge Community College

2. Central Virginia Community College 3. Danville Community College

4. Dabney S. Lancaster Community College 5. J. Sargeant Reynolds Community College 6. Lord Fairfax Community College

7. New River Community College 8. Paul D. Camp Community College 9. Rappahannock Community College 10.Southside Virginia Community College 11.Southwest Virginia Community College 12.Thomas Nelson Community College 13.Wytheville Community College

Based on the results of the review, we concluded that the amount of leave liability reported as of June 30, 2012 was reasonable for the 13 colleges and the System Office. However, because of weaknesses noted on the Leave Liability and Leave Used Reports, errors could result in the misstatement of current leave liability and the additions to compensated absences in the Long- Term Liability Footnote. We developed recommendations to address the weaknesses; the HRMS Functional Team in the System Office created appropriate corrective action plans.

We also performed a five-year comparison of leave liability as reported on the financial statements for all 23 colleges and the System Office. Based on that comparison, total leave liability reported in 2012 for the system as a whole appeared reasonable.

RESOURCE PERSON: Mrs. Helen C. Vanderland Director of Internal Audit

Virginia Community College System 804-819-4951

BACKGROUND:

As requested by System Office management, Internal Audit reviewed the process of awarding in- state tuition to members of the military and their families at Tidewater Community College (TCC). Specifically, the objective was to determine whether changes in domicile status from out-of-state to in-state for the military and their families were made appropriately based on regulations issued by the State Council for Higher Education in Virginia and the Code of Virginia.

Our review revealed that the College process for awarding in-state tuition to the military was not operating adequately to ensure decisions were appropriate or in compliance with regulations. Specific weakness noted included:

1. Lack of written policies and procedures at any of the four campuses regarding the determination of domicile status

2. Incorrect decisions made on tuition domicile status

3. Lack of documentation to support decisions on tuition domicile status 4. Lack of consistent standards of documentation across the four campuses

We developed recommendations to address the weaknesses noted above for which management developed corrective action plans. We believe management’s corrective action plans will address the weaknesses and help ensure future compliance. These changes will also ensure that domicile issues are treated consistently across all campuses of TCC going forward.

RECOMMENDATION: None

RESOURCE PERSON: Mrs. Helen C. Vanderland Director of Internal Audit

Virginia Community College System 804-819-4951

TITLE: 2012-2013 AUDIT PLAN STATUS (III.B.3.c.) BACKGROUND:

As is required by the internal auditing standards, I am providing you with an update on the audit plan. (See attached.) As you can see, many of the audits and reviews are in progress and several have been completed. I do not anticipate any problems completing the plan at this point.

RECOMMENDATION: None

RESOURCE PERSON: Mrs. Helen C. Vanderland Director of Internal Audit

Virginia Community College System 804-819-4951

In Process Complete

Audits

HRMS (Human Resource Management System) X

Pcard (Small Purchase Charge Card) X

Dual Enrollment X

PCI DSS Compliance X

IT Security - Review of Standards and Procedures Follow-ups: Academic Activties X AIS IT Security X Workforce Development X Local Funds Accounts Payable X Special Projects Leave Liability X System Development:

Decision Support System X

Workforce Enterprise System X

Business Office Reviews X

Cell Phone Expenditures

Management Requests X

Other Projects

Risk Assessment and Audit Planning

APA Assistance X

Audit Process Improvement X

Fraud Investigations (15 Hotlines) X

Italics - indicates a carryover from prior fiscal year.

BACKGROUND:

Litigation regarding the VCCS will be discussed at the Audit Committee meeting. RECOMMENDATION:

None

RESOURCE PERSON: Ms. Greer Saunders

System Counsel and Assistant Attorney General Virginia Community College System

DEED OF EASEMENT & TEMPORARY CONSTRUCTION EASEMENT CITY OF LYNCHBURG

(III.C.2.a) BACKGROUND:

This Permanent Deed of Easement will allow for the construction of approximately 914 linear feet of a multi-purpose trail, beginning at the SE corner of the Central Virginia Community College Campus, near the intersection of Wards Road and Harvard Street and extending in a WNW direction, along the southern edge of Harvard Street to Parking Lot 3, located just west of the Main Entrance to the Campus. This 6’ wide, concrete trail will follow the centerline of a 15’ wide Easement and will serve to extend the “Wards Road Pedestrian / Bicycle Trail” from the intersection of Wards Road & Harvard Street, across State Board for Community Colleges property, to a termination point at Parking Lot 3. This Permanent Easement will impact 0.315 of an acre of State Board for Community Colleges property (see attached Plat, dated January 28, 2013, as prepared by Wiley/Wilson of Lynchburg, Virginia). This Easement will not interfere with the future development of the Central Virginia Community College Campus.

The City of Lynchburg is proposing to begin construction of this Pedestrian/Bicycle Trail in June of 2013. Two (2) Temporary Construction Easements, one at the entrance to Harvard Street from Wards Road and the other in the general vicinity where the Pedestrian/Bicycle Trail

terminates at Parking Lot 3, impacting 0.155 and 0.035 of an acre of State Board for Community Colleges property respectively, are required (see attached Plat). Construction is estimated to take approximately 45 days to complete. The City of Lynchburg will be responsible for all required maintenance of this trail.