Northeast Texas Community College
An Audit Report on Management Controls at Northeast Texas Community College
Report Number 96-045
Overall Conclusion
Inaction by the Board of Trustees, management override by the former administration, and poor internal controls have resulted in operational and financial mismanagement at Northeast Texas Community College. Improvements are needed in all areas of financial operations as well as information management. The new president has initiated improvements in financial and management controls and in communication with the Board of Trustees, faculty, and staff. However, serious financial problems and internal control weaknesses remain.
Key Facts and Findings
Management override by the previous administration and inaction by the Board of Trustees resulted in mismanagement of college assets. Excessive and inappropriate expenditures went unchallenged until the Texas Rangers were called in to investigate.
Northeast Texas Community College has been unable to pay its bills on a timely basis and has incurred thousands of dollars in insufficient funds charges. The College has extended payment on its long-term debt, costing the College millions in interest expense and jeopardizing the future growth of the College.
Accounting for the Foundation's scholarship and endowment funds is inadequate, and there has been little oversight by the Foundation's board. The College's accounting system is not able to compile scholarship fund account balances, which has resulted in overawarding of student scholarships and the liquidation of some scholarship balances.
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