Internal Audit For the period July 1 – September 30, 1999
B.A.R. 9904
Austin Community College
To: Board of Trustees
Austin Community College
Completed projects that need a management response:
None.
Other completed projects:
99-10 Sales Tax Report, Second Quarter 1999
99-11 TIF Assessment Report, Second Quarter 1999
These quarterly reports pertain to taxable Teleconferencing activities at the Pinnacle Campus.
Projects in progress:
Continued audit of payroll files pertaining to an employee alleged to have reported for payment certain hours that were not actually worked. As of September 30, this audit was still in process.
Review of the golf course contract to assess compliance has identified an item of non-compliance with regard to calculating rents due to ACC. Our written contract calls for the payment of Base Rent and the payment of Percentage Rent (based on percentage of revenue). American Golf Corporation is treating the Base Rent as a minimum rent, and is paying the higher of the two each month. Our contract has no provision for an offset or "greater of" calculation. I have referred this to management for resolution.
During the course of my review of financial issues pertaining to the golf course, I observed the tax appraisal of our 96.8 acres parcel of land on Grove Boulevard (non-exempt for tax purposes) increased more than 1,000% from 1997 to 1998. This resulted in a property tax increase of more than 1,200%. I have recommended that management investigate this drastic one-year increase and appeal the appraisal if appropriate.
Commenced audit of the ACC Bookstore to assess compliance with our contract with Barnes & Noble. As of September 30, this audit was still in process.
Other activities:
Worked closely with external auditors during their interim field work and testing for Single Audit. Assisted Business Services in preparation for closing the financial records for fiscal year end. Collected and assembled data requested by independent auditors.
Jerry North
Director, Internal Audit
December 6, 1999