Mid Michigan Community College

Michigan Office of the
Auditor General
Thomas H. McTavish, C.P.A.
Auditor General

EXECUTIVE DIGEST #3226099
Mid Michigan Community College

INTRODUCTION
This report, issued in December 1998, contains the results of our performance audit of Mid Michigan Community College.

AUDIT PURPOSE
This performance audit was conducted under the authority of Section 203(2), Act 85, P.A. 1997 (a section of the community colleges' appropriations act), which mandates that the Auditor General conduct not less than three performance audits of community colleges each year.

BACKGROUND
Mid Michigan Community College is a public two-year institution of higher education. The College district includes the public school districts of Beaverton, Clare, Farwell, Gladwin, and Harrison.

The College, established in 1965, operates under the authority of Sections 389.1 - 389.195 of the Michigan Compiled Laws, commonly known as the Community College Act of 1966. It is governed by a Board of Trustees consisting of seven members elected at large to serve six-year terms.

The College's mission is to provide educational and community leadership for the development of human ability by providing post-secondary education and services to enable students and the community to achieve success in a global society. To achieve its mission, the College offers academic, vocational-technical, and community education programs.

For the fiscal year ended June 30, 1997, the College reported current fund revenue (general, designated, auxiliary activities, and restricted funds) of $11,218,763, expenditures and transfers of $10,826,935, and enrollment of 1,282 fiscal year equated students. As of July 1998, the College employed 31 full-time faculty, 100 part-time faculty, and 65 full-time and part-time administrative and support personnel.

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS
Audit Objective: To assess the effectiveness of the College's admission and monitoring practices to help students successfully complete their classes and programs.

Conclusion: The College's admission and monitoring practices were generally effective in helping students successfully complete their classes and programs. However, our assessment disclosed a reportable condition relating to student academic placement (Finding 1).

Audit Objective: To assess the effectiveness of the College's efforts to evaluate the quality of its educational programs.

Conclusion: The College's efforts to evaluate the quality of its educational programs were effective.

Noteworthy Accomplishments: The College was first accredited by the Commission of Institutions of Higher Education of the North Central Association of Colleges and Schools in 1974 and has retained its accreditation without interruption to the present. The College's methods for evaluating the quality of education included developing an academic assessment plan, analyzing student licensure and certification examination results, establishing advisory committees for its occupational programs, and obtaining information through surveys of employers and graduates. The College had also made significant progress toward the development and implementation of a strategic plan. Implementation of specific goals and objectives, resulting from this plan, was scheduled to begin during fall semester 1998.

Audit Objective: To assess the effectiveness of the College's efforts to use its educational program resources effectively and efficiently.

Conclusion: The College was generally effective and efficient in its use of resources for education programs. However, our assessment disclosed reportable conditions relating to repetitive course enrollments and minimum class enrollments (Findings 2 and 3).

Noteworthy Accomplishments: The College had developed goals and objectives directly related to the effective and efficient use of educational resources as part of its recently completed strategic plan. Implementation of the plan was expected to occur during fall semester 1998.

Audit Objective: To determine whether the College complied with the Legislature's reporting requirements for education programs.

Conclusion: The College complied with the Legislature's reporting requirements for education programs.

Audit Objective: To evaluate the relevancy and accuracy of recent capital outlay program statements submitted to the Department of Management and Budget (DMB).

Conclusion: Our evaluation disclosed that the College's program statements were relevant but generally not accurate. Our evaluation disclosed one material condition:

The College did not accurately determine and report all student enrollment and facility utilization information in capital outlay planning documents submitted to DMB (Finding 4).

The College agreed with the corresponding recommendation.

AUDIT SCOPE AND METHODOLOGY
Our audit scope was to examine the program and other records of Mid Michigan Community College. 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 financial statements of Mid Michigan Community College are audited annually by a public accounting firm engaged by the College.

Our review and testing of College records and procedures was primarily limited to the period August 1, 1995 through July 31, 1998.

We reviewed the College's admission process, evaluated the methods used for enrolling students and monitoring student progress, and analyzed the academic assessment and placement process. We evaluated the College's efforts to assess the quality of its educational programs. In addition, we determined whether the College had established procedures for evaluating and obtaining accreditation of its programs and reviewed the methods used to periodically assess the job training needs of the community's employers.

We evaluated the effectiveness of the College's efforts to use its educational program resources effectively and efficiently. We extracted student academic record information from the College's data base for use in examining repetitive course enrollments, minimum class enrollments, and underage student enrollments. We reviewed the program and financial records for the At-Risk Students Success Program grants to determine whether the College complied with State requirements. We also reviewed College planning documents, student enrollments, facility utilization information, and project records related to the College's recent capital outlay projects.

AGENCY RESPONSES
Our audit report contains 4 findings and 5 corresponding recommendations. The College's preliminary response indicated that it agreed with all 5 recommendations. The College will initiate corrective action when appropriate.

Full Audit Report - #3226099 - Mid Michigan Community College

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INTRODUCTION This report, issued in December 1998, contains the results of our performance audit of Mid Michigan Community College.

AUDIT PURPOSE This performance audit was conducted under the authority of Section 203(2), Act 85, P.A. 1997 (a section of the community colleges' appropriations act), which mandates that the Auditor General conduct not less than three performance audits of community colleges each year.

BACKGROUND Mid Michigan Community College is a public two-year institution of higher education. The College district includes the public school districts of Beaverton, Clare, Farwell, Gladwin, and Harrison. The College, established in 1965, operates under the authority of Sections 389.1 - 389.195 of the Michigan Compiled Laws, commonly known as the Community College Act of 1966. It is governed by a Board of Trustees consisting of seven members elected at large to serve six-year terms. The College's mission is to provide educational and community leadership for the development of human ability by providing post-secondary education and services to enable students and the community to achieve success in a global society. To achieve its mission, the College offers academic, vocational-technical, and community education programs. For the fiscal year ended June 30, 1997, the College reported current fund revenue (general, designated, auxiliary activities, and restricted funds) of $11,218,763, expenditures and transfers of $10,826,935, and enrollment of 1,282 fiscal year equated students. As of July 1998, the College employed 31 full-time faculty, 100 part-time faculty, and 65 full-time and part-time administrative and support personnel.

AUDIT OBJECTIVES, CONCLUSIONS, AND NOTEWORTHY ACCOMPLISHMENTS Audit Objective: To assess the effectiveness of the College's admission and monitoring practices to help students successfully complete their classes and programs. Conclusion: The College's admission and monitoring practices were generally effective in helping students successfully complete their classes and programs. However, our assessment disclosed a reportable condition relating to student academic placement (Finding 1). Audit Objective: To assess the effectiveness of the College's efforts to evaluate the quality of its educational programs. Conclusion: The College's efforts to evaluate the quality of its educational programs were effective. Noteworthy Accomplishments: The College was first accredited by the Commission of Institutions of Higher Education of the North Central Association of Colleges and Schools in 1974 and has retained its accreditation without interruption to the present. The College's methods for evaluating the quality of education included developing an academic assessment plan, analyzing student licensure and certification examination results, establishing advisory committees for its occupational programs, and obtaining information through surveys of employers and graduates. The College had also made significant progress toward the development and implementation of a strategic plan. Implementation of specific goals and objectives, resulting from this plan, was scheduled to begin during fall semester 1998. Audit Objective: To assess the effectiveness of the College's efforts to use its educational program resources effectively and efficiently. Conclusion: The College was generally effective and efficient in its use of resources for education programs. However, our assessment disclosed reportable conditions relating to repetitive course enrollments and minimum class enrollments (Findings 2 and 3). Noteworthy Accomplishments: The College had developed goals and objectives directly related to the effective and efficient use of educational resources as part of its recently completed strategic plan. Implementation of the plan was expected to occur during fall semester 1998. Audit Objective: To determine whether the College complied with the Legislature's reporting requirements for education programs. Conclusion: The College complied with the Legislature's reporting requirements for education programs. Audit Objective: To evaluate the relevancy and accuracy of recent capital outlay program statements submitted to the Department of Management and Budget (DMB). Conclusion: Our evaluation disclosed that the College's program statements were relevant but generally not accurate. Our evaluation disclosed one material condition: The College did not accurately determine and report all student enrollment and facility utilization information in capital outlay planning documents submitted to DMB (Finding 4). The College agreed with the corresponding recommendation.

AUDIT SCOPE AND METHODOLOGY Our audit scope was to examine the program and other records of Mid Michigan Community College. 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 financial statements of Mid Michigan Community College are audited annually by a public accounting firm engaged by the College. Our review and testing of College records and procedures was primarily limited to the period August 1, 1995 through July 31, 1998. We reviewed the College's admission process, evaluated the methods used for enrolling students and monitoring student progress, and analyzed the academic assessment and placement process. We evaluated the College's efforts to assess the quality of its educational programs. In addition, we determined whether the College had established procedures for evaluating and obtaining accreditation of its programs and reviewed the methods used to periodically assess the job training needs of the community's employers. We evaluated the effectiveness of the College's efforts to use its educational program resources effectively and efficiently. We extracted student academic record information from the College's data base for use in examining repetitive course enrollments, minimum class enrollments, and underage student enrollments. We reviewed the program and financial records for the At-Risk Students Success Program grants to determine whether the College complied with State requirements. We also reviewed College planning documents, student enrollments, facility utilization information, and project records related to the College's recent capital outlay projects.

AGENCY RESPONSES Our audit report contains 4 findings and 5 corresponding recommendations. The College's preliminary response indicated that it agreed with all 5 recommendations. The College will initiate corrective action when appropriate.