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NYS Comptroller

THOMAS P. DiNAPOLI

Audits of Local Governments and School Districts

Report Highlights

Genesee Community College - Procurement, Cash Disbursements and College President's Compensation (2019M-81)

Released: October 4, 2019 -- [read complete report - pdf]

Audit Objective

Determine whether:

  • Goods and services were procured in a manner consistent with the procurement policy.
  • Cash disbursements were properly supported and approved.
  • The President’s salary and benefits were in accordance with his employment contract.

Key Findings

  • Officials could not demonstrate that they complied with competitive bidding statutes when awarding two contracts totaling $549,000 and did not seek competition as required by the procurement policy for five professional service contracts totaling $2.8 million and nine purchases totaling $125,000.
  • The Board has not sufficiently segregated cash disbursement duties and has not established adequate compensating controls such as an independent claims audit function.
  • The President received approximately $142,000 in monetary benefits over six years that were not clearly stated by his employment contract.

Key Recommendations

  • Require the purchasing agent to monitor compliance with the procurement policy and statutory bidding requirements.
  • Ensure cash disbursement duties are adequately segregated and/or adequate compensating controls are in place.
  • Clearly document all Board-approved compensation and benefits in the President’s employment contract.

College officials generally agreed with our recommendations and indicated they planned to take corrective action. Appendix B includes our comments on issues raised in the College’s response.

Background

SUNY GCC/Genesee Community College (College) is governed by a Board of Trustees (Board) composed of nine appointed members and one elected student trustee. The Board is responsible for establishing and monitoring compliance with policies governing the College’s financial and educational affairs.

The President of the College (President) is the College’s chief executive officer and is responsible, along with other administrative staff, for day-to-day management in accordance with policies established by the Board and the State University of New York (SUNY). The Executive Vice President of Finance and Operations is the chief financial officer (CFO) and is responsible for the administration and supervision of financial activities. The CFO is also the Board’s designated purchasing agent responsible for overseeing the procurement process.

Quick Facts
2017-18 Budgeted Appropriations$40.9 million
Purchases$13.8 million
Non-Payroll Disbursements$15.8 million
President’s 2017-18 Compensation~$354,000

Audit Period

September 1, 2017 – February 19, 2019. We expanded our audit scope period to September 2013 to review the President’s compensation and benefits.


Local Government and School Accountability Contact Information:

Phone: (518) 474-4037; Email: localgov@osc.ny.gov
Address: Office of the State Comptroller, Division of Local Government and School Accountability
110 State Street, 12th Floor; Albany, NY 12236