Auditor General
Thomas H. McTavish, C.P.A.
Auditor General
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Auditor General Thomas H. McTavish, C.P.A. Auditor General |
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| INTRODUCTION | This report contains the results of our compliance audit of the Community Colleges Activities Classification Structure for the colleges' fiscal year 1993-94 (July 1, 1993 through June 30, 1994). |
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| AUDIT PURPOSE | This compliance audit was conducted as part of the constitutional responsibility of the Office of the Auditor General and was required by Act 285, P.A. 1994, the annual appropriations act for community colleges. |
| BACKGROUND | The activities classification structure (ACS) was developed in response to Section
8, Act 419, P.A. 1978 (a section of the community college appropriations act for
fiscal year 1978-79). Uniform data reporting requirements were developed for use
in making State budget and appropriation decisions. Act 117, P.A. 1984, provided
for a funding formula to be used to determine State aid for each community college.
The funding formula is based on ACS information, such as full-time equated students,
contact hours, expenditures, and other activity measures. For fiscal year 1993-94, Act 285, P.A. 1994, continued with the reporting requirements as established in Act 117, P.A. 1984. Act 285 requires the colleges to annually report to the Department of Education certain information on ACS forms. |
| AUDIT OBJECTIVE AND CONCLUSION | Audit Objective: To determine whether the ACS information
reported to the Department of Education on the ACS forms was in accordance with
the provisions of the annual appropriations act (Act 285, P.A. 1994), the Michigan
Community Colleges Activities Classification Structure manual, the Manual for Uniform
Financial Reporting of Michigan Public Community Colleges, and the Department of
Education's instructions. Conclusion: In our opinion, the eight community colleges at which we reviewed the accuracy of selected ACS information were in general compliance with the reporting requirements. However, the community colleges did not accurately report some information and did not retain all supporting documentation for audit (Findings 1 through 15). These reporting discrepancies were not considered material and did not impact the appropriation process. Several of our audit findings pertain to more than one college; therefore, we have included a summary of audit findings, as supplemental information, to identify the specific colleges involved. |
| AUDIT SCOPE | Our audit scope was to examine the financial and other records supporting the
activities classification structure information reported by eight community colleges
for their fiscal year ended June 30, 1994. Our audit was conducted in accordance
with Government Auditing Standards issued by the Comptroller General of the United
States and, accordingly, included such tests of the records and such other auditing
procedures as we considered necessary in the circumstances. The following community colleges were included in our audit: Glen Oaks Community College Grand Rapids Community College Henry Ford Community College Kirtland Community College Lansing Community College Oakland Community College Schoolcraft College Washtenaw Community College |
| AGENCY RESPONSES | Our audit includes 15 findings and 16 corresponding recommendations. We discussed our audit findings with the management of each community college. The colleges' responses indicated concurrence with our findings. |
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