ERIC Number: ED462123
Record Type: Non-Journal
Publication Date: 1997-Oct
Reference Count: N/A
Cerritos Community College: Improvements Needed in Aspects of Operating the District and Its Auxiliary Organization.
California State Office of the Auditor General, Sacramento.
This audit report discusses the operation of the Enterprise Fund by Cerritos Community College District in California. In addition, the Cerritos College Foundation's conflict of interest policies, its relationship with the district, and its award of contracts for services was reviewed. It was found that the district needed improvement in its operation of the enterprise, which consists of a bookstore, cafeteria, convenience store, grill, cosmetology services, and vending operations. Much of the focus of the examination of the Fund was on the management of the bookstore. The bookstore's assets represented 92% of the enterprise's total assets as of December 31, 1996. The cafeteria and convenience store in particular generally had negative balances large enough to create a negative balance for the whole enterprise. The district plans to resolve the bookstore's operating problems by privatizing it. However, without the revenues generated by the bookstore, the remaining elements of the enterprise would have even more significant cash flow problems. The cafeteria has had negative cash balances ranging from $63,161 to $113,733, while the convenience store has had negative cash balances ranging from $68,316 to $118,356. In the past, those negative balances have been subsidized by the bookstore. The report recommends that the district take steps to improve its accounting for and control over bookstore operations. (NB)
Descriptors: Administration, Bookstores, Budgets, College Stores, Community Colleges, Costs, Debt (Financial), Disclosure, Educational Finance, Expenditures, Financial Audits, Financial Problems, Financial Support, Money Management, Resource Allocation, School Funds, State Aid, Two Year Colleges
California State Auditor, Bureau of State Audits, 555 Capitol Mall, Suite 300, Sacramento, CA 95814. Tel: 916-445-0255. For full text: http://www.bsa.ca.gov/bsa.
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: California State Office of the Auditor General, Sacramento.