Luzerne County Community College (LCCC) was established pursuant to the Community College Act of 19631 as a public two-year comprehensive community college for the residents of Luzerne County and northeastern Pennsylvania. LCCC offers academic and vocational educational programs and provides assistance to local businesses, industry and governmental institutions.
The campus, located in Nanticoke, consists of 14 buildings on 122 acres. It includes administrative offices, technical arts buildings and an educational conference center, as well as classroom facilities.
LCCC is governed by a 15-member Board of Trustees (the Board) appointed by the Luzerne County Commissioners. The Board has the authority to hire and fire employees, appoint a President, formulate the college's annual budget and establish policies. LCCC receives approximately $8 million in Commonwealth funds annually through the Pennsylvania Department of Education (PDE)2.
In 1999, the Department of the Auditor General received information concerning alleged improprieties at LCCC via news reports and the Department's taxpayer hotline. Most of the complaints involved alleged inappropriate charges incurred in connection with activities of LCCC's President.3 Many of the complaints were addressed in a report by Albert B. Melone, Co., an independent accounting firm, dated August 10, 1999 (the Independent Accountant's Report). The firm was engaged by the LCCC Board to perform specific accounting procedures in regard to the following activities:
The time period included in the Independent Accountant's Report was November 1997 to June 30, 1999.
After the Independent Accountant's Report was completed and the recommendations submitted to LCCC, the Department of the Auditor General received allegations that the independent accounting firm had not been given all relevant information from LCCC's records.
The Department of the Auditor General's Office of Special Investigations (OSI) conducted an investigation to determine: (1) whether there was any material and significant information that had not been provided to the independent accounting firm; and (2) whether there were areas of major weaknesses and/or irregularities in the financial management of LCCC that were not addressed in the Independent Accountant's Report.
OSI conducted interviews of LCCC officers, employees, members of the Board of Trustees, and reviewed records of LCCC and the independent accounting firm's work papers. OSI did not conduct a financial or performance audit of LCCC. However, the investigation included an extensive review of financial records and audit procedures were used in specific portions of the work. The time period included in OSI's investigation was from June 1997 to April 2000. This gave the investigators the opportunity to also consider LCCC's implementation of recommendations in the Independent Accountant's Report.
LCCC officials and staff, the independent accounting firm and third parties cooperated with OSI and provided timely assistance during the investigation.
OSI representatives met with LCCC officials, board members and counsel on September 14, 2000, to review the draft report. Information in the Response submitted on behalf of LCCC has been incorporated into the report and/or summarized in the Response section.
Footnotes
124 P.S. § 19-1901-A et seq. (1992). (Back)
2Community colleges are subject to fiscal audits by PDE. 24 P.S. § 19-1913-A (Supp. 2000). (Back)
3The employment contract of the LCCC President was not renewed at the end of its term (July 1, 2000). An interim President was then appointed. (Back)
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