College Audit Uncovers Oversight Gaps, Not Missing Funds

College officials say a recent forensic audit found no missing money and that the institution is still in “excellent fiscal condition” while building reserves, yet it also revealed serious failures in financial oversight that left trustees unaware of millions in transactions. The audit was ordered after reserve balances fell to a critical level that the board could not explain, prompting a review of how money was being handled. The Board’s Chairman explained that the lack of theft is not enough; transparency and honest reporting are essential for public trust. The audit spotlighted three main issues: a $3. 6 million transfer from the college’s auxiliary tax pool into its bond bank account without board approval; about $700 000 in extra costs linked to four new contracts for a master plan program manager that were not disclosed; and incomplete bond‑related financial reports dating back to April 2022, which limited trustees’ ability to monitor reserves and forecast expenses. Former Vice President of Business Affairs Chris Sharp, who oversaw financial matters, was placed on paid leave in October and resigned in November. He claimed he left voluntarily while still on leave, and the president and cabinet were not aware of the audit’s findings because they relied on the information presented to them.The college had considered a line of credit to stabilize operations, but state funds ultimately covered payroll and expenses. Trustees were mainly concerned about the near depletion of short‑term investments such as certificates of deposit, which had dropped to almost nothing. Seasonal cash‑flow swings are common for public schools that receive large funding installments, yet trustees did not grasp the full extent of the decline. To prevent future lapses, new safeguards are being put in place: dual signatures for accessing certain funds and certificates of deposit; increased financial reporting to trustees at least twice a month; a new dashboard for clearer visibility into reserves and bond activity; tighter documentation and approval processes; and the possibility of hiring an internal auditor. The Chairman believes that having an internal auditor could have stopped many of the problems uncovered. Auditors will present a detailed report at the next Board meeting on February 24, where trustees will discuss reserve rebuilding and additional oversight measures. Restoring public trust is a top priority, with the board emphasizing its responsibility to taxpayers and students.