Cover Sheet · 11/06/2019 · Student Affairs Officer (CSAO) • Vice President of Student Affairs or Student Services revised to: Chief Student Affairs Officer (CSAO) ... By 2030,

STAFF REPORTS

Summary of Policy Manual Project

Ms. Tammy McDonald, Vice President of Administration and Human Resources

Staff Report

Summary of Policy Manual

Revisions

June 11, 2019

Tammy McDonald

Vice President of Administration and Human Resources

Summary of Policy Manual Revisions

September 11, 2018 – Board of Regents Approved the following Action :

• to move forward with revisions to all B policies in the College’s Manual of Policies and Procedures with the appropriate personnel title and/or designation

September 11, 2018 – Board of Regents Provided the following Notification:

• such revisions will be made to all affected Administrative (A) policies, as deemed necessary.

Summary of Policy Manual Revisions

• President revised to: Chief Executive Officer (CEO)• Vice President of Instruction revised to: Chief Academic Officer (CAO)• Vice President of Instruction and Student Services or Provost and Vice President of Student Affairs revised

to one of the following depending on the context of the policy: Chief Academic Officer (CAO) or Chief Student Affairs Officer (CSAO)

• Vice President of Student Affairs or Student Services revised to: Chief Student Affairs Officer (CSAO)• Vice President of Administration and Finance revised to one of the following depending on the context of

the policy: Chief Financial Officer (CFO) or Chief Human Resources Officer (CHRO) or Chief Risk Management Officer (CRMO) or Chief Physical Facilities Officer (CPFO) or Election Manager

• Executive Director of Administration and Human Resources or Executive Director of Human Resources revised to: Chief Human Resources Officer (CHRO)

• Assistant to the President or Executive Director for any College Relations area revised to: Chief Public Relations Officer (CPRO)

• Chief Information Technology Officer revised to: Chief Information Officer (CIO) • Director of Risk Management revised to: Chief of Security

Budget Update

Mr. Raul Garcia, Vice President and CFO

Del Mar College

Board of Regents Budget Update

June 11, 2019

Raul Garcia, Vice President and CFO

2019 Annual Operating Revenues(Prior Year’s Budget)

• Annual operating revenues of $ 100.4 million

• 3 major sources of funding (98.9%)

• Tuition and fees ($ 22.9 million or 22.8%)

• Base state appropriations ($ 15.9 million or 15.8%)

• Property taxes ($ 54.7 million or 54.4%)

• State Contribution to Employee Benefits

• Retirement contribution - TRS ($ 1.6 million or 1.6%)

• Insurance Contribution - ERS ($ 4.4 million or 4.4%)

Base Appropriation

15.8%

Insurance Contribution

4.4%

Retirement Contribution

1.6%

Tuition & Fees22.8%

Property Taxes54.4%

Miscellaneous1.1%

OPERATING REVENUE KEY FINANCIAL VARIABLESREVENUE

TYPE KEY VARIABLE BUDGET ASSUMPTIONS Est. Annual RevenueChange

Property Taxes o Appraised property valueso Increase over the effective rate

(FY 2019 5.42%)o New constructiono Legislative property tax reform

o Increase in property values (3%)o Rate above the effective rate (5%)o New construction of $3,000,000

$ 3,109,303

Tuition and Fees o Credit hour productiono Tuition and fee rate

o Flat level credit hour productiono Board approval semester hour rate

increase of $3 ($67 per credit hour)

$ 861,134

Base State Appropriations

o Contact hour production o Three year weighted average

student success points

o State determined funding rateso Contact hour productiono Student success points

$ 611,736

Total $4,582,173

TENTATIVE BASE STATE APPROPRIATIONS• The tentative annual state funding is $16.4 million an

increase of $612 thousand for each of the coming year two years.

o Core Success funding is $411 thousand or 75% of the $611

• Funding rate changes

o Contact Hour rate is $5.44 an increase from $5.40

o Success Point rate is $202.53 an increase from$171.56

o Core Operations rate flat at $1.36

• Student Success Funding Focus

o The State annual increase in state funding for community colleges is $32.7 of which 74% funded student success with the rest going to contact hours.

$0

$2,000,000

$4,000,000

$6,000,000

$8,000,000

$10,000,000

$12,000,000

$14,000,000

2018 2019 2020 2021

2018 2019 2020 2021 Core Operations $680,406 $680,406 $680,406 $680,406 Student Success $1,212,988 $1,212,988 $1,624,493 $1,624,493 Contact Hour

Funding $13,974,340 $13,974,340 $14,174,572 $14,174,572

2019 Annual Operating Expenses(Prior Year’s Budget)

• Annual operating expense of $ 100.4 million

• Salary and employee benefits ($ 74.9 million or 74.5%)

• Utilities and telephone ($ 3.2 million or 3.2%)

• Supplies and Materials ($ 3 million or 3.1%)

• Consultants and Contract Labor ($3 million or 3%)

• Computer software, hardware, license and services ($2.3 million or 2.3%)

• Services and other expenses ($ 5.1 million or 5.1%)

Salaries 56%

Employee Benefits19%

Supplies & Materials

3%

Phys Facilities, Maint & Repairs

2%

Equipment2%

Student Recruiting &

Marketing1%

Comp Software,Hardware,

License2%Security

1%

Utilities & Telephone

3%

Insurance1%

Contingencies2%

Services & Other

Operating8%

STRATEGIC INITIATIVE FUNDING(PRELIMINARY)

• Redesign college-wide advising processes to ensure optimal supports for completion and transfer are provided to all students (QEP). Leverage existing and new advising technologies.

• Ensure that Dual Credit Students are completing coursework within their intended DMC degree pathway.

• Require comprehensive advising training for all faculty and staff members who provide advising services (QEP).

Goal 1 - Completion ($578,000)

• Develop and implement a strategic communication plan to promote services available to students.

Goal 2 - Recruitment and Persistence ($1,256,000)

• Fully implement the DMC Police department.

Goal 4 - Learning Environments ($2,118,000)

• Continue to develop corporate services training contracts with business and industry.

Goal 5 - Workforce Development, Community Partnerships, and Advocacy ($440,000)

2020 FINANCIAL SUPPORT(PRELIMINARY)

• Operating Activities• Salary• Benefits• Utilities• Custodial• Ground Services• Property Insurance• Instructional Equipment• Police Vehicles• Repair and Maintenance• South Side Campus

• Funding needs: $3.8 million

Budget Plan Calendar

Review andRecommendations

(Phase III)

Budget Approval (Phase IV)

Month Date ActivityJun 11 • Board of Regents Update

20 • Pre-final Staffing Plan For South Side CampusJul 9 • Board of Regents Workshop

25 • Appraisal Districts Deadline For Certified Appraisals

Aug 4 • Publish Tax Rate Notice Deadline5 • Called Meeting - Order For Public Hearings On Budget And

Tax Rates (Record Vote Needed)

11 • Publish Notice Of Public Hearing For Budget And Tax Rate13 • Board Meeting19 • 1st Public Hearing On Budget And Tax Rate22 • 2nd Public Hearing On Tax Rate27 • Called Meeting - Board Of Regents Budget And Tax Rate

Approval31 • Deadline To Approve The Budget Per Education State

Statue

QUESTION AND ANSWER SESSION

THECB 60X30 Strategic Plan Update

Dr. Kristina Wilson, Dean of Institutional Effectiveness & Assessment

Update

Dr. Kristina Wilson

Dean of Institutional Effectiveness & Assessment

• Strategic Plan for Higher Education in Texas, Effective 2015

• Four Goals with State-Wide Targets for 2030

• Three Regional Targets

Goal One: Educated Population

Goal Two – Completion

Goal Three – Marketable Skills

Goal Four – Student Debt

Targets

Source of Data: Texas Higher Education Coordinating Board 60x30 Website, www.60x30tx.com

http://www.60x30tx.com/

Statewide Targets•2015 – 41% (actual)

•2020 - 48%

•2025 – 54%

•2030 – 60%

2017 – 43.5% (actual)

Goal One: Educated PopulationBy 2030, at least 60% of Texans ages 25-34 will have a certificate or degree.

Goal One: Educated PopulationBy 2030, at least 47% of South Texans ages 25-34 will have a certificate or degree.

South Texas Targets•2015 – 33.3% (actual)

•2020 - 37%

•2025 – 41%

•2030 – 47%

2017 – 34.8% (actual)

Statewide Targets•2015 – 311,340 (actual)

•2020 - 376,000

•2025 – 455,000

•2030 – 550,000

2018 – 341, 307 (actual)

Goal Two: CompletionBy 2030, at least 550,000 certificates and degrees will be awarded in Texas.

South Texas Targets•2015 – 49,621(actual)

•2020 - 63,644

•2025 – 77,020

•2030 – 93,113

2018 – 51,471(actual)

Down from

51,976 in 2017

Goal Two: CompletionBy 2030, at least 93,113 certificates and degrees will be awarded in that year in South Texas.

Del Mar College Targets•2015 – 1,407(actual)

•2020 - 1,962

•2025 – 2,374

•2030 – 2,873

2018 – 2,025 (actual)

2020 Target

Exceeded

Goal Two: CompletionBy 2030, at least 2,873 certificates and degrees will be awarded in that year at Del Mar College.

Statewide Targets•2016 – 52%(actual)

•2020 - 58%

•2025 – 61%

•2030 – 65%

2018 – 52% (actual)

Goal Two: Completion; HS to IHEBy 2030, at least 65% of all TX public high school graduates will enroll in an IHE in Texas by the first fall after their HS graduation.

South Texas Targets•2016 – 51%(actual)

•2020 - 57%

•2025 – 60%

•2030 – 64%

2018 – 52% (actual)

Goal Two: Completion; HS to IHEBy 2030, at least 64% of South TX public high school graduates will enroll in an IHE in Texas by the first fall after their HS graduation.

Target

Exceeded

Goal Three: Marketable SkillsBy 2030, all graduates from TX public institutions will have

completed programs with identified marketable skills.

Target:

80%

Target

Exceeded

Goal Four : Student DebtBy 2030, no more than half of all students who earn an undergraduate degree or certificate will have debt.

Graduates With Debt:

33%

2018

Graduates

Without

Debt: 67%

Regional Collaboration

• DMC is collaborating with partner institutions in the

Middle South Texas Region o Corpus Christi, Beeville, Kingsville, Victoria, Del

Rio, and Laredo

• Institutions are collectively working to design and

implement Guided Pathways

Transition to Higher EducationDiffering Starting Points:

High SchoolContinuing EducationReturning Students

1. Next StepsDiffering Paths Forward:

Community College to University TransferEntry into the Workforce

Advanced Degrees

2.

Effective Advising 3.

Marketing Campaign4.

Regional CollaborationDMC hosted a meeting of the regional partners on March 1.

PENDING BUSINESS

Item Date Request Responsibility Due Status 1

Policy Manual Revisions (Title Revisions)

Dr. Mark Escamilla May

June Meeting

2

Internal Audit Report to the Board

Dr. Mark Escamilla June

June Meeting

3

THECB 60x30 Strategic Plan (DMC steps/plan for compliance)

Dr. Mark Escamilla June

June Meeting

4 Quarterly Financial Report Dr. Mark Escamilla

July

5 Quarterly Investment Report Dr. Mark Escamilla July

6

Tax Abatement Yearly Review Dr. Mark Escamilla July/ August

7 Interim Status Report of Grant Management Audit by Staff

Dr. Mark Escamilla August

8

SACS & QEP Updates Dr. Mark Escamilla September

9

Enrollment Update Dr. Mark Escamilla October

10

Clery Data Dr. Mark Escamilla October

11 Professional Contract Review by Board of Regents

Dr. Mark Escamilla October

12

Foundation Yearly Update

Dr. Mark Escamilla December

13

Civitas Update Dr. Mark Escamilla January 2020

14

Review of Tuition Policy (In comparison to other colleges)

Dr. Mark Escamilla February 2020

CONSENT AGENDA Item 1

Regular Board Meeting Page 1 May 14, 2019

MINUTES OF THE REGULAR MEETING OF THE BOARD OF REGENTS OF THE DEL MAR COLLEGE DISTRICT

May 14, 2019

The Regular Meeting of the Board of Regents of the Del Mar College District convened in the Isensee Board Room, Del Mar College, Corpus Christi, Texas at 1:00 p.m. on Tuesday, May 14, 2019, with the following present: From the Board: Mr. Gabe Rivas, Ms. Libby Averyt, Dr. Nicholas Adame, Mr. Ed Bennett, Ms. Elva Estrada, Ms. Susan Hutchinson, Mr. Hector Salinas, and Dr. Mary Sherwood. From the College: Dr. Mark Escamilla, President and CEO; Dr. Beth Lewis, Executive Vice President and Chief Academic Officer; Mr. Raul Garcia, Vice President and CFO; Ms. Tammy McDonald, Vice President of Administration and Human Resources; Ms. Lenora Keas, Vice President Workforce Development and Strategic Initiatives; Mr. Augustin Rivera, Jr., General Counsel; Dr. Rito Silva, Vice President for Student Affairs; Mr. August Alfonso, Vice President of Facilities Operations and Chief Information Officer; Mr. Jay Knioum, Interim Executive Director of Strategic Communication and Government Relations; Ms. Mary McQueen, Executive Director of Development; Ms. Natalie Villarreal, Director of External and Board Relations, Ms. Delia Perez, Board Liaison; and other staff and faculty. CALL TO ORDER/QUORUM CALL/MOMENT OF SILENCE/PLEDGE OF ALLEGIANCE/MISSION STATEMENT Mr. Rivas called the meeting to order with a quorum present. He requested a moment of silence followed by the Pledge of Allegiance and Mission Statement.

RECOGNITIONS:

Students and Staff:

SGA Awards received at the 49th TJCSGA Annual Conference…..………..Dr. Rito Silva (Goal 2. Student Access and Support Services: Maximize Affordable Access and Excellence in Student Services) Dr. Silva congratulated the SGA officers who participated in the 49th TJCSGA Annual Conference. He described the awards received at the conference. He introduced the SGA officers present: Natasha Perez, Roslyn Swonke, Sophia Jimenez, and Julia Cruz, and their advisor, Ms. Beverly Cage. The SGA Officers shared a video with the Board and audience, the song on the video was an original from Del Mar College students.


Inductees to Student Hall of Fame: Pedro Lopez, Troy Nessner, Natasha Perez, and Roslyn Swonke………………………………………………………………Dr. Rito Silva (Goal 2. Student Access and Support Services: Maximize Affordable Access and Excellence in Student Services) Dr. Silva introduced the Hall of Fame recipients, Pedro Lopez, Troy Nessner, Natasha Perez, and Roslyn Swonke. He stated that being nominated to the Student Hall of Fame is the highest honor at the College. The students are not only nominated by their GPA, but also a diverse committee of faculty members rank the students on service to the College and the community, and attitude. Dr. Silva provided information on each inductee.

Dr. Kristina Wilson, selection to the 2019 National Community College Hispanic Council (NCCHC) Leadership Fellows Program……..……………………Dr. Beth Lewis (Goal 3. Professional Initiatives: Provide Innovative, Relevant, and Meaningful Opportunities) Dr. Lewis announced that the National Community College Hispanic Council (NCCHC) selected Dr. Kristina Wilson, Dean of Institutional Effectiveness and Assessment, to participate in their prestigious Leadership Development Program as a 2019 Fellow. Dr. Wilson is one of twenty-four members of the 2019 Fellows class and was selected from community college candidates from around the country. The Program is hosted by the University of San Diego School of Leadership and Education Sciences and is designed to develop highly qualified Latinos whose career interest focuses on responsible leadership positions with the ultimate goal of being a community college president.

Faculty……………………………………………………………………………..Dr. Beth Lewis

Department of Nurse Education #11 Ranked Vocational Nursing Program in Texas (Goal 1. Student Learning Success: Ensure Exceptional Educational Opportunities for All Students) Dr. Lewis reported that every year PracticalNursing.Org studies Vocational Nursing Programs in each state offering information about becoming a Licensed Practical Nurse. In Texas and California the term is Licensed Vocational Nurse and this year the College’s Vocational Nursing Program has been ranked #11 out of 77 college programs in Texas. Dr. Lewis provided information on how the colleges were assessed, with the College scoring 97.88 out of a possible 100 points. Dr. Vangie DeLeon, Chair of the Nursing Department, and Dr. Jennifer McWha, Nursing Program Director, briefly addressed the Board and thanked them for their support.


STAFF REPORTS:

2014 Capital Improvement Program Update………………………..…….Mr. August Alfonso (Goal 7. Resource: Ensure Strong Financial and Operational Capacity) Mr. Alfonso introduced two consultants that are providing the College with construction management and program development services related to the 2014 Del Mar College Bond. Mr. Brett Flint, AG/CM Program Manager provided a construction update about the existing 2014 Bond Projects and included information on the following: Central Plant Improvements: Upgrades completed, final cost $2,352,943; Emerging Technology Expansion (West); Expected full occupancy in August 2019,

Construction contract: $8,847,000; Workforce Development Center (West): Expected full occupancy in August 2019,

Construction contract approved by the Board $14,700,000; and General Academic and Music Building (East): Expected full occupancy in August 2019;

Construction contract $45,975,057.

Mr. Doug Lowe, AIA LEED AP of Facility Programming Consulting provided the Board with information and recommendations relating to the execution of the remaining 2014 Bond Projects. Mr. Lowe indicated that the information he is presenting has been reviewed by Dr. Escamilla, Dr. Lewis and the Steering Committee. His presentation included information on the following: Existing Building Classroom Analysis Plus Demand: Statistics, Classroom Utilization,

and Proposed Classroom Inventory; Proposed Overall Plan Plus Phasing for Renovations: Phase 1 - Renovate Fine Arts

Music for Faculty Offices and General Classroom Use; Renovate Memorial Classroom as Executive Administration Building, Phase 2 – Renovate Heldenfels Administration Building as One-Stop Enrollment Center, Renovate Library, Phase 3 – Renovate Harvin Student Center, Renovate Multi-Service Center for Employee Service Center, also included during phases is Campus Edge; and

Budget: Potential budget allocation of $42,298,086.

Mr. Lowe briefly discussed the students from around the region and their need for affordable housing and because the College has student demand and exceptional specialized programs he recommends that the Board consider housing as an option in the future. Dr. Escamilla stated that housing is a repeated request they receive from students. Dr. Escamilla responded to questions from the Regents regarding this topic and said this item will be brought back to the Board during a workshop in the summer months for analysis, options and further discussion.


Dr. Escamilla, Mr. Alfonso, Mr. Flint and Mr. Lowe responded to questions from the Regents.

Update on Field of Nursing Initiatives…………………………………………Dr. Beth Lewis (Goal 1. Student Learning Success: Ensure Exceptional Educational Opportunities for All Students) Dr. Lewis reported that the Texas Higher Education Coordinating Board has considered expanding the offering of baccalaureate degrees at community colleges. They began that process last fall and began reviewing proposals in January. The same criteria and standards is used to approve the baccalaureate degree programs at community colleges and universities. Austin Community College was approved for RN to BSN and they had 25 students in Fall 2018, with additional colleges in review. Dr. Lewis’s presentation included information pertaining to: Why the College is pursuing a bachelor of science in nursing at Del Mar College; Job marketability; DMC’s NCLEX-RN Pass Rate (first attempt); Program Support; DMC Faculty Capacity; Funding for BSN Program; Current Progress; and Implementation Timeline.

Dr. Escamilla stated that moving from Level I to Level II is a major step for the College and that is why they are bringing information to put on the table for discussion at the Board level, and the College will continue to do its due diligence as the Board is considering this change. Additional information will be brought to the Board in upcoming meetings.

Dr. Lewis, Dr. De Leon and Dr. McWha responded to questions from the Regents.

Instructional Program Review Process and Status Report……….………….…Dr. Beth Lewis (Goal 1. Student Learning Success: Ensure Exceptional Educational Opportunities for All Students) Dr. Lewis stated that she provides a yearly status review on instructional programs, and this is required by Board policy. Dr. Lewis described program review, including the seven core criteria and the four possible outcomes which include: Positive, Conditional, Probationary, and Terminate. Dr. Lewis provided the Status Report on the 2018 Review, with 12 programs in positive status as of today’s meeting and five are pending review completion. Dr. Lewis responded to questions from the Regents.


Legislative Update……………………………..……………..........……Ms. Natalie Villarreal (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning) Dr. Escamilla reported that Sine Die is thirteen days away and there is still much activity. Ms. Natalie Villarreal, Director of External and Board Relations, provided a legislative update to the Board. She stated that there were over 10,000 bills filed collectively, and 87 have been signed by the Governor. She provided an overview of bills that could affect the College including HB 1 – State Budget, SB 500 – Supplemental Appropriations, and SB 2 – Property Tax. Dr. Escamilla and Ms. Villarreal responded to questions from the Regents.

COLLEGE PRESIDENT’S REPORT…………………………………...……Dr. Mark Escamilla

April 30, 2019: TACC Meetings at the Capitol (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

May 13, 2019: Legislative Committee Meeting (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

May 27, 2019: Sine Die – 86th Legislature (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning) Dr. Escamilla stated that the three meetings listed above relate to time he has spent in Austin during the legislative session. The level of cooperation and hard work that the Texas Association of Community Colleges (TACC), Community College Association of Texas Trustees (CCATT), and Texas Community College Teachers Association (TCCTA) has made a profound difference, and legislators are listening like never before.

PENDING BUSINESS: Status Report on Requested Information (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

CONSENT AGENDA

Notice to the Public

The following items are of a routine or administrative nature. The Board of Regents has been furnished with background and support material on each item, and/or it has been discussed at a previous meeting. All items will be acted upon by one vote without being discussed separately


unless requested by a Board member or a citizen, in which event the item(s) will immediately be withdrawn for individual consideration in their normal sequence after the items not requiring separate discussion have been acted upon. The remaining items will be adopted by one vote.

CONSENT MOTIONS:

(At this point the Board will vote on all motions not removed for individual consideration.)

ITEMS FOR DISCUSSION AND POSSIBLE ACTION:

1. Approval of Minutes: Called Meeting, April 12, 2019 Regular Board Meeting, April 23, 2019 (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

2. Acceptance of Investments for April 2019

(Goal 7. Resources: Ensure Strong Financial and Operational Capacity)

3. Acceptance of Financials for March 2019 (Goal 7. Resources: Ensure Strong Financial and Operational Capacity)

Dr. Adame made a motion to approve the consent agenda items. Dr. Sherwood seconded the motion. There was no further discussion from the Board. There were no public comments. A voice vote was taken and the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

REGULAR AGENDA

4. Discussion and possible action related to the designation of a General Contractor for the South Campus Phase I-A (Central Plant, Utilities, and Excavation) – Package 1, in response to RFCSP# 2019-08 and authorizing the administration to proceed with awarding a contract……………………………..……..………………Mr. August Alfonso (Goal 7. Resources: Ensure Strong Financial and Operational Capacity)

Mr. Alfonso reported that on April 2, 2019 the College issued RFSP #2019-08 for the construction of the South Campus Phase I-A package, which includes central plant, utilities and excavation. Six firms submitted Statements of Qualifications (SOQs) and Competitive Sealed Proposals (CSPs) for consideration: Barcom Construction Inc., Beecroft Construction, Fulton Coastcon Construction, Journeyman Construction, SpawGlass, and Teal Construction.


Mr. Alfonso listed the Evaluation Committee members. The Evaluation Committee’s recommendation for the general contract for the South Campus Phase I-A is Fulton Coastcon Construction and the base bid is $9,250,000 and the bid alternate is $1,145,000.

Mr. Alfonso recognized AG/CM and Gensler/Turner Ramirez for their work in getting them to this point.

Dr. Adame made a motion based on the Evaluation Committee’s recommendation that the College select Fulton Coastcon Construction as the contractor for South Campus Phase I-A. Mr. Salinas seconded the motion. There was no further discussion from the Board. Ms. Susie Luna Saldana made a public comment thanking the Evaluation Committee for selecting local contractors. There were no additional public comments. A roll-call vote was taken and the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

5. Discussion and possible action related to proposed new Enterprise Resource Planning

(ERP) System……………………………….………………………......Mr. August Alfonso (Goal 4. Technology: Utilize Technology to Enhance Academic and Institutional Services and Processes) Dr. Escamilla stated that this is an opportunity for the Board’s consideration to bring the College into a new generation of technology to support every aspect of the College. He thanked the College for coming together to prepare this item for the Board’s consideration as they move forward.

Mr. Alfonso described the rationale for adopting a new ERP. He stated that there were nine committee members that voted unanimously for migration to the new ERP and unanimously recommended a product for the Board’s consideration. The following committee members were present to express their support of the new ERP and the value it will bring to the College: Craig Brashears, Carolyn Sorrels, Patricia Benavides-Dominguez, and Jay Knioum. Mr. Alfonso stated that the Evaluation Committee’s recommendation for a new ERP system is Campus Management. Administration is seeking Board authorization to proceed with contract negotiations. Mr. Alfonso responded to questions from the Regents.

Ms. Estrada made a motion for administration to proceed with contract negotiations with Campus Management for a new ERP System. Mr. Bennett seconded the motion. There was no further discussion from the Board. There were no public comments. A voice vote was taken and


the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

6. Discussion and possible action relating to the Facility Naming Policy ……………………………………………………………….………. Ms. Mary McQueen

(Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

Ms. McQueen reported that this was a follow-up from last month’s report to the Board. In this process, the current policy was reviewed and revised with input from the Board. With the feedback from last month, several changes are proposed. The Board has the final approval for all naming recognition, the administration manages process, procedure, criteria and standards for all naming proposals, and Endowments for endowed naming will be established at the Foundation. She also indicated the campuses and complexes will not be available for naming; academic units, including Colleges, available for naming; minimum monetary values (MMV) to be established and lower MMV’s established for termed naming rights.

Ms. McQueen and Ms. McDonald responded to questions from the Board.

Mr. Bennett made a motion to approve the Facility Naming Policy. Dr. Adame seconded the motion. There was no further discussion from the Board. There were no public comments. A voice vote was taken and the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

7. Discussion and possible acceptance of the College’s Vision, Core Values and Mission …………………………………………………………………….……..Dr. Kristina Wilson

(Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

Dr. Wilson reported that on April 12th, a Strategic Planning Board Retreat was held and the Board looked at data, priorities and also a proposed mission, vision and core value statement. The last time the College looked at mission, vision and core values was in 2011, and it’s a good time to look at it again and make sure it’s in line with current values, and best practices. Dr. Wilson provided an overview and status of the process and answered questions from the Board.

8. Discussion and possible action related to approval of revised and adoption of new Board policies:


Adoption of Revisions to Board Policies: B6.11 Instructional Program Review and B7.5 Admissions with sections B7.5.1 added Adoption of New Board Policies: B7.29 Awarding Credit with related sections B7.29.1; B7.29.2; B7.29.3, B7.33 Distance Learning and B3.6 Institutionally Related Foundation …………………………………………………...…………………..Ms. Tammy McDonald (Goal 5. Advocacy: Advance the College Mission Through Effective Governance and Positioning)

Ms. McDonald reported this policy work is a result of our SACSCOC reaffirmation efforts to clarify and better align with current SACSCOC standards. These revisions/additions also include a continued effort to make appropriate title revisions as needed.

Ms. Estrada made a motion to approve the revised and adoption of the new Board policies. Mr. Salinas seconded that motion. There was no further discussion from the Board. There were no public comments. A voice vote was taken and the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

GENERAL PUBLIC COMMENTS (Non-Agenda Items) – 3-minute time limit

List of public comments: Ms. Jackie Adamson, and James Klein.

At 3:58 p.m., the Chair announced that the Board was going into Closed Session pursuant to:

9. CLOSED SESSION:

A. TEX. GOV’T CODE § 551.071: (Consultation with legal counsel), regarding pending or contemplated litigation or legal claims, or a settlement offer, with possible discussion and action in open session; and, the seeking of legal advice from counsel, with possible discussion and action in open session;

B. TEX. GOV’T CODE § 551.074(a)(1): (Personnel Matters), regarding the appointment, employment, evaluation, reassignment, duties, discipline, or dismissal of a public officer or employee; including, 1.) Annual Evaluation of College President; 2.) Annual Board Self-Evaluation; and, 3.) Regent’s Duties, Responsibilities, and Statement of Ethics; with possible discussion and action in open session; and,

C. TEX. GOV’T CODE § 551.073: (Deliberation Regarding Prospective Gift), regarding a prospective gift or donation, with possible discussion and action in open session.

The Board reconvened in Open Session at 5:24 p.m.


Mr. Salinas made a motion to approve the Annual Board Self-Evaluation, and Ms. Averyt seconded the motion. There was no further discussion from the Board. There were no public comments. A voice vote was taken and the motion carried unanimously, amongst Regents present, 8-0, with Regents Adame, Averyt, Bennett, Estrada, Hutchinson, Rivas, Salinas, and Sherwood in favor.

CALENDAR: Discussion and possible action related to calendaring dates.

ADJOURNMENT: The meeting was adjourned at 5:29 p.m.

MINUTES REVIEWED BY GC: /s/AR



REGULAR AGENDA Item 4

Del Mar CollegeInternal Audit Board Status Report June 11, 2019

1

AgendaInternal Audit Plan and Status

– Completed 2019 Internal Audit• Internal Audit over Student Services

– Completed 2019 Follow-up Internal Audits• Follow-up Audit over Purchasing• Follow-up Audit over IT General Controls

– Remaining 2019 Internal Audit Activities• 2019 Annual Internal Audit Report

2

FY 2019 Internal Audit Plan Status

Grant Management HighInternal Audit will include an evaluation of risks and internal controls in place related to the College's processes for Grant Administration, Grant Research and Application, Grant Contracting, Grant Funding, Grant Monitoring, Grant Reporting and Grant Contract Closeout.

Internal Audit Complete

Information Security (Limited Scope Design Evaluation)

HighInternal Audit will include an evaluation of risks and internal controls in place related to the District's Information Security practices. Activities to be evaluated will include Internal and External Security, Logical Access, Physical Access, and Compliance with security and privacy requirements.

Internal Audit Deferred

Student Services HighInternal Audit will include an evaluation of risks and internal controls in place related to the College's Student Services. Activities to be evaluated will included Advising, Tutoring, Counseling, Students with Disabilities, and Student Disciplinary Action.

Internal Audit Complete

Special Projects (as requested) Internal Audit will perform special projects as requested by Management. Internal Audit No Project

Requested

Accounts Payable High Internal Audit will perform 9 procedures on the 2018 Internal Audit to ensure corrective action has been taken. Follow-up Complete

Human Resources High Internal Audit will perform 6 procedures on the on 2017 Internal Audit to ensure corrective action has been taken. Follow-up Complete

Admissions / Registrar High Internal Audit will perform 11 procedures on the 2016 Internal Audit to ensure corrective action has been taken. Follow-up Complete

Financial Aid High Internal Audit will perform 1 procedure on the 2016 Internal Audit to ensure corrective action has been taken. Follow-up Complete

IT General Controls High Internal Audit will perform 8 procedures on the 2016 Internal Audit to ensure corrective action has been taken. Follow-up Complete

Purchasing High Internal Audit will perform 9 procedures on the 2017 Internal Audit to ensure corrective action has been taken. Follow-up Complete

Project Management NA Track overall internal audit procedures, coordinate audit activities, and reporting to management. Project Management Ongoing

Update Risk Assessment NA Perform required annual update of risk assessment Policy Compliance Ongoing

Annual and Quarterly Board Reports NA Prepare and submit required annual and quarterly reports to the Board of internal audit activities. Policy

Compliance Ongoing

Status as of June 2019Audit Area Risk

Rating Summary of Procedures Project Type

2019 Planned Internal Audits

2019 Internal Audit Follow-Ups

2019 Annual Requirements

Internal Audit of Student Services

Student Services Internal Audit Audit fieldwork was executed during the period of March 18, 2019,

through April 22, 2019, and the internal audit report was issuedMay 30, 2019 with an overall Strong rating.

The coverage period of the audit was July 1, 2017 through January31, 2019

Scope The scope focused on the Student Services processes in place

within the Student Engagement and Retention Department. Wereviewed the procedures in place for appropriate risk andregulatory coverage and compliance to ensure efficient andeffective processes.

3

4

Internal Audit of Student Services

Key functions and subprocesses within the Student Services process reviewed included:

The scope of the audit did not include evaluating Advising processesthat were included within the 2015 Internal Audit of Admissions andRegistrar (Report #01-15)

• Student Advising• Tutoring• Student Counselling• Student Retention • Career Development Services• Students with Disabilities• Student and Title IX Complaints• Student Disciplinary Action

Summary Results

5

The controls over the Student Services processes wererated overall as Strong, with two Strong and oneSatisfactory ratings for the three Audit Objectives, with 6findings identified.

OVERALL ASSESSMENT STRONG

Objective A: Design of Internal Controls STRONGObjective B: Effectiveness of Internal Controls STRONGObjective C: Appropriateness of System Access SATISFACTORY

Objective A

Determine whether internal controls over Student Services processes are designed to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations and compliance with College procedures and federal law.

Rating STRONG

Results

We identified 57 controls to be in place in the processes. However, there are opportunities to strengthen the processes and control environment including:

• Standardize procedures for tracking and documenting advising interactions with students

• Implement procedures for the assessment of tutoring needs• Improve the current counseling staffing ratio to reduce wait times and

comply with industry standards• Implement a monthly review of retention documentation for students

on probation or suspension who had a registration hold removed • Revise the policy for students with disabilities to allow additional time for

faculty to review, sign and return the Student Accommodation Notification Letters

Summary Results

6

Summary ResultsWe identified 57 controls in place over the significant activities within the Student Services functions. We also identified five findings where improvements in the process can be made.

7

Process Area Control Coverage Findings

Student Services Processes

Student Advising 4 Finding 1

Tutoring 11 Finding 2

Student Counseling 8 Finding 3

Student Retention 9 Finding 4

Career Development Services 2 -

Students with Disabilities 4 Finding 5

Student and Title IX Complaints 11 -

Student Disciplinary Action 8 -

Total 57

Objective BEnsure that controls over selected critical processes within Student Services processes are operating efficiently, effectively, and resulting in consistent and compliant procedures.

Rating STRONG

Results

Controls appear to be in place; however, all are not consistently executed. We identified the following opportunities for improvement:

• Track and document advising sessions with student• Review the removal of probation and suspension holds on a monthly basis• Revise the policy for students with disabilities to ensure a sufficient and feasible

timeframe for faculty to review, sign and return the Student Accommodation Notification Letters

Objective CVerify that user access to view and modify sensitive student records in Colleague, Maxient, AccuTrack, and Titanium systems is restricted to appropriate personnel and that access is periodically reviewed.

Rating SATISFACTORY

Results

Access to Colleague and Accutrack is not appropriately restricted for the individuals identified and user access is not periodically reviewed for Titanium. Additionally, inappropriate access should be removed to Colleague and AccuTrack and ensure that a user access review is performed periodically for Titanium.

Summary Results

8

Summary of ResultsFindings: Finding 1 – Moderate – Advising Sessions Documentation: The College

does not have a standardized process for Advisors to documentinteractions with students.

Finding 2 – Low – Assessment of Tutoring Needs: The Student SuccessCenter does not have established procedures in place to formally assesthe College's tutoring needs and to ensure that the Center has a sufficientnumber of tutors.

Finding 3 – Low – Counseling Staff and Student Ratio: The College is notmeeting counseling staffing requirements prescribed by the InternationalAssociation of Counseling Services for the recommended staff to studentratio.

9

Summary of ResultsFindings: Finding 4 – Low – Secondary Review of Retention Documentation: The

College does not have procedures in place to facilitate a secondaryreview of Retention Case Managers’ (RCMs) retention documentation toensure that all required documentation is received prior to removal ofregistration holds for students on academic probation or suspension.

Finding 5 – Low – Disability Accommodation Letters: The Disability ServicesOffice staff do not consistently obtain signed Student AccommodationNotification Letters from faculty in a timely manner.

Finding 6 – Moderate – Inappropriate User Access: One part-time staffwithin Retention Services and two former employees have inappropriateaccess to Colleague and AccuTrack, respectively. Additionally, useraccess is not periodically reviewed for the Titanium system.

10

We identified 6 recommendations to assist management in improving Student Services processes, of which we rated 2 Moderate, and 4 Low. These recommendations include:

1. Implement College-wide procedures and standardized forms/checklists for tracking and documenting advising interactions with students.

2. Assess tutoring needs before the start of each semester and monthly during the semester.

3. Improve the current staffing ratio to reduce wait times and to comply with industry standards prescribed by the International Association of Counselling Services.

4. Implement a monthly review of retention documentation for students on probation or suspension who had a registration hold removed.

5. Revise the policy to allow additional time for faculty to review, sign and return the Student Accommodation Notification Letters for students with disabilities.

6. Remove inappropriate access to Colleague and AccuTrack and implement a periodic user access review for Titanium.

Recommendations

11

*

*

* - indicates Moderate risk

Management has responded to the internal audit findings. The status of actions taken to address the findings include:

12

Management’s Response to Findings

Finding Status

1 Advising Sessions Documentation

College Management will develop checklists, training modules relevant to creating a standardized Advising component, and a plan of completion for Advisors to follow. New procedures will be created and distributed to Advisors by May 31, 2019.

2 Assessment of Tutoring Needs

College Management created written procedures in order to formally assess the College’s peer tutoring needs and to ensure the College has a sufficient amount of Tutors. New procedures will become effective by July 1, 2019.

3 Counselling Staff and Student Ratio

College Management submitted one full-time and one part-time Counselor position justification request for FY2020 consideration. Additional positions will be requested in the following fiscal years and the appropriate student to Counselor ratio will be accomplished by January 2022.

4Secondary Review of Retention Documentation

College Management implemented an audit of all probation student hold removals for compliance by May 31, 2019. The audit will be completed at the beginning of each academic term going forward.

5 Disability Accommodation Letters

College Management will revise the policy to remove the 1-day requirement in favor of a more feasible timeline for faculty to receive, review, sign, and return the Classroom Accommodation Notification form. Additionally, the Management will formalize escalation procedures for addressing untimely signoffs by faculty. These procedures will be implemented by August 19, 2019.

6 Inappropriate User Access

College Management removed inappropriate access in Colleague and AccuTrack. Additionally, the Management will implement an annual user access review for Colleague, AccuTrack and Titanium.

2019 Follow-up Internal Audit of PurchasingPurchasing Follow-up Internal Audit Follow-up Audit fieldwork was executed during the period of

March 1, 2019 through March 21, 2019, related to the findings fromthe 2017 Internal Audit Report over Purchasing.

The exit meeting was held on April 25, 2019, and the report wasissued May 30, 2019.

Scope The follow-up procedures focused on the remediation efforts taken

by Del Mar Management to address the findings included in the2017 Internal Audit Report over Purchasing, and to validate thatappropriate corrective action had been taken.

13

2019 Follow-up Internal Audit of Purchasing We evaluated the corrective action of the 9 open internal audit

findings from the 13 overall findings identified in the 2017 Internal Audit Report over Purchasing.

Summary of Results:

14

Risk Rating Total Findings Previously Remediated Remediated Partially

Remediated Open

High 5 1 2 1 1 Moderate 8 3 3 1 1 Low - - - - - Total 13 4 5 2 2

2019 Follow-up Internal Audit of PurchasingBased on our evaluation, College Management made efforts to remediate thefindings from the 2017 Internal Audit Report. However, the College shouldcontinue their efforts to address the remaining partially remediated and openfindings.Partially Remediated Findings

1. Finding 4 – Moderate – Reporting of Vendor Transactions from Cooperative PurchasingAgreements – There is no formal and systematic process in place to identify, monitor, anddocument which vendor transactions are required to be self-reported by the College to therespective Cooperative.

2. Finding 8 – High – Vendor List is Not Monitored – The Purchasing Department does not haveprocedures in place to monitor and update the active vendor listing.

Open Findings 1. Finding 5 – High – Lack of Formal Delegation of Authority – the College does not have a

formalized delegation of authority with specific, defined thresholds for the approval of contractsby College Management and/or the Board.

2. Finding 6 – Moderate – Contract Renewals are Not Initiated Timely – Contract renewals are notsystematically monitored and flagged to ensure timely action to prevent expiration while goodsor services are still being purchased under the contract.

15

2019 Follow-up Internal Audit of PurchasingSummary Recommendations We recommend that the College continue to remediate the

Purchasing findings and strengthen the existing processes. The College should implement additional controls to enhance the following:

Ensure timely reporting of purchase orders related to cooperative agreements that require reporting

Implement a formal delegation of authority for approval of contracts at defined thresholds

Monitor contract expirations to ensure timely renewals Ensure that dormant and duplicate vendors are removed from the

vendor master file timely

16

Management Responses

Management has provided updated responses to the partially remediatedfindings, including updated implementation dates.

Internal Audit will conduct follow-up procedures to validate remediationefforts on the remaining open findings in Fiscal Year 2020.

17

2019 Follow-up Internal Audit of Purchasing

Finding Status

4Reporting of Vendor Transactions from Cooperative Purchasing Agreements

College Management will implement on a test basis a monthly quality reviewby June 1, 2019.

5 Lack of Formal Delegation of Authority

College Management will formalize the delegation of authority by documenting the President's designee to the respective business related executive team member by July 1, 2019.

6 Contract Renewals are Not Initiated Timely

College Management will work on filling open positions, adding a new position, ramping up an outdated technology solution, and exploring a new software solution by July 1, 2019.

8 Vendor List is Not MonitoredCollege Management will work with the Office of Information Technology to enhance the newly implemented purge of inactive vendors to further reduce the number of dormant and duplicate vendors by June 15, 2019.

2019 Follow-up Internal Audit of IT General ControlsIT General Controls Follow-up Internal Audit The draft report is dated April 22, 2019, an exit meeting was held on April 22, 2019,

and the report was issued May 30, 2019. The report is available separately to theBoard in Executive Session due to confidentiality of computer network security underGovernment Code §552.139 and § 551.076. Government Code §552.139 and § 551.076 provide an exemption to

governmental bodies from the required disclosure of public information relatedto the design, operation or defense of a governmental body’s computersystems.

Follow-up Audit fieldwork was executed during the period of February 11, 2019through February 15, 2019, related to the findings from the 2016 Internal Audit Reportover IT General Controls.

Scope The follow-up procedures focused on the remediation efforts taken by Del Mar

Management to address the remaining open findings included in the 2016 InternalAudit Report Over IT General Controls, and to validate that appropriate correctiveaction had been taken.

18

Remaining 2019 Internal Audit Activities Fiscal Year 2019 Annual Internal Audit Report

Annual Internal Audit Report is due to state oversight agencies and posted on Del Mar College’s website by November 1, 2019.

The report includes compliance reporting requirements and includes:Overview of 2019 Internal Audit activityConsulting and non-audit services performed for the College Internal Audit Quality Assurance Report Description of process to approve the 2020 Internal Audit Plan External Audit services performed for the College

19

Discussion

Daniel Graves, CPA | Partner512.609.1913 | [email protected]

Brandon Tanous, CIA, CFE, CGAP, CRMA | Senior Manager832.320.3275 | [email protected]

mailto:[email protected]


Del Mar College IA # 05-2019 Internal Audit Report over Student Services Report Date: April 22, 2019 Issued: May 30, 2019

C O N T E N T S

Page

Internal Audit Report Transmittal Letter To The President…………………. .................................................................................................................. 1 Background .................................................................................................................................................... 2 Audit Objective and Scope ......................................................................................................................... 3 Executive Summary ....................................................................................................................................... 6 Conclusion ...................................................................................................................................................... 8 Detailed Procedures Performed, Findings, Recommendations And Management Response ...................................................................................................................... 9

Objective A: Design of Internal Controls ........................................................................................... 10 Objective B: Effectiveness of Internal Controls ................................................................................ 16

Objective C: Appropriateness of System Access ............................................................................ 19

Appendix ...................................................................................................................................................... 21

Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio

Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746

Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM

Dr. Mark Escamilla President Del Mar College 101 Baldwin Blvd. Corpus Christi, TX 78404 This report presents the results of the internal audit procedures performed for Del Mar College during the period March 18, 2019, through April 22, 2019, relating to the Student Services processes. The objectives of this internal audit were to evaluate the design and effectiveness of Del Mar College’s Student Services processes as follows:

A. Determine whether internal controls over Student Services processes are designed to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations and compliance with College procedures and federal law.

B. Ensure that controls over selected critical processes within Student Services processes are operating efficiently, effectively, and resulting in consistent and compliant procedures.

C. Verify that user access to view and modify sensitive student records in Colleague, Maxient, AccuTrack and Titanium is restricted to appropriate personnel and that access is periodically reviewed.

Our procedures included interviews and walk-throughs with key personnel within the Student Engagement and Retention Department to gain an understanding of the current processes in place, examining existing documentation, and evaluating the internal controls over the processes. We evaluated the existing policies, procedures, and processes in their current state. Our coverage period was from July 1, 2017 through January 31, 2019. The following report summarizes the findings identified, risks to the organization, recommendations for improvement and management’s responses.

WEAVER AND TIDWELL, L.L.P. Austin, Texas May 30, 2019

Del Mar College IA #05-2019 Internal Audit Report over Student Services

April 22, 2019 Issued May 30, 2019

2

Background Del Mar College (the College) Student Engagement and Retention Department is responsible for providing student services, such as tutoring, counseling, retention, career development, accommodations for students with disabilities as well as processing student complaints and disciplinary actions. In addition, the Student Enrollment Center and Department Advisors are responsible for student advising on college courses and degree plans. The College requires students with fewer than 24 credit hours to meet with an Advisor prior to being able to registers for classes. Students who have declared a major are also required to speak to an Advisor in the department of their major, however, Liberal Arts majors or students who are undecided are required to meet with Student Enrollment Specialists within the Student Enrollment Center. Students who need assistance in courses have access to free peer tutoring within the Student Success Center and academic departments as well as the outside professional tutoring at “Tutor.com”. Tutors at the Student Success Center are vetted, trained, certified through the College Reading and Learning Association – International Tutor Training Program, and are required to maintain an overall GPA of 3.0 or better to be eligible as a Tutor. The Student Success Center utilizes student surveys to receive feedback on tutor quality and document the encounters within the AccuTrack system. During the calendar year 2018, the Student Success Center’s peer Tutors completed 2,596 tutoring sessions with students. Counseling services are available to students on East and West Campuses through the College Counseling Center. The College currently employs two full-time and one part-time licensed Counselors. The Counselors are licensed by the Texas State Board of Examiners or are license eligible with a provisional/LPC-Intern License. The Counseling Center utilizes the Titanium system as the case management system for student counseling. During the calendar year 2018, students scheduled 1,556 counseling sessions with the College Counselors. Students on academic probation or suspension receive aid from Del Mar College Retention Services to continue their college education. According to College policy, students who have earned at least 12 hours of academic credit and have a GPA below 2.0 are placed on academic probation. Students with three consecutive semesters on academic probation are placed on a suspension and are ineligible for financial aid. Students on probation are required to meet with a Retention Case Manager, complete an assessment of learning readiness and provide an action plan in order to be allowed to register for courses. Students on suspension are required to complete the probation requirements and meet with an Academic Advisor and an Academic Dean prior to having their registration hold removed. The College’s Disability Services Office is responsible for providing services to students with disabilities, in accordance with the Americans with Disabilities Act (ADA). Students who request services are required to complete a Request for Disability Support Services form, meet with a Disability Specialist and provide supporting documentation for their disability. Requests are reviewed by Disability Specialists and are approved or denied based on the facts and circumstances of each student. Accommodations provided to students are customized for each course and are coordinated with faculty.



3

Further, the Student Engagement and Retention Department is responsible for processing student complaints and misconduct cases, in accordance with College policies. Student complaints are screened by Student Engagement and Retention staff to determine the type of complaint and the applicable College policy. Complaints are submitted on a standardized complaint form, which communicates to the students the major milestones and required timeframes for processing complaints. Student misconduct cases are reported by faculty, staff or students in person, via a phone call, or by submitting an online Incident Report Form. The Assistant Dean of Student Engagement and Retention reviews misconduct cases to determine whether they meet the criteria outlined in the Standards of Student Conduct and resolves each case accordingly. The Student Engagement and Retention Department utilizes the Maxient system for processing student disciplinary and misconduct complaints and their resolution. Audit Objective and Scope

The audit focused on the College’s Student Services processes in place within the Student Engagement and Retention Department. We reviewed the procedures in place for appropriate risk and regulatory coverage and compliance to ensure efficient and effective processes. The scope included an evaluation of the processes currently in practice covering the activities within the key areas, including:

• Student Advising • Tutoring • Student Counselling • Student Retention • Career Development Services • Students with Disabilities • Student and Title IX Complaints • Student Disciplinary Action

Our procedures were designed to ensure relevant risks are covered and verify the following: Student Advising

• Students with fewer than 24 credit hours are advised prior to registration • Students applying to selective or restricted programs are advised prior to acceptance • Advisors are appropriately assigned to students • Advisors’ interactions with students are adequately documented • Advisors are adequately trained

Tutoring

• Tutors receive appropriate training, are certified, and meet GPA requirements • Tutoring needs are periodically assessed to ensure sufficient number of tutors • Tutoring schedules are created and available to students • Tutor performance is periodically evaluated and tracked



4

Student Counseling • Counsellors are qualified and adequately trained • College has the appropriate number of Counsellors to address student needs • Counseling services are provided timely to students • Counselling sessions are adequately documented • Access to counselling records is adequately restricted • Students are referred to other health professionals when appropriate

Student Retention

• Students on academic probation or suspension are identified, tracked and monitored by Case Managers

• Registration holds for students on academic probation or suspension are removed timely after all required steps are completed

• Students identified through Faculty Retention Alert Program (RAP) are appropriately assigned, tracked and monitored by Case Managers

• Student probation or suspension records are appropriately restricted to appropriate personnel Career Development Services

• Career development services provided are approved and performed according to policy and procedure

• Students receive appropriate and timely assistance with career searches and application • Career development services are effectively communicated and available to students

Students with Disabilities

• Disability services for students are provided and adequately communicated • Requests for accommodations include the required supporting documentation and are

processed in a timely manner • Requests for accommodations are approved in accordance with College Policy and ADA

requirements • Access to sensitive student information is adequately restricted

Student and Title IX Complaints

• Student complaints received are processed timely and in accordance with College policies and procedures

• Discrimination, harassment and retaliation complaints are documented, referred to the appropriate individual, and processed in accordance with College policies and procedures

Student Disciplinary Action

• Misconduct is accurately identified, evaluated to ensure it meets the College criteria, and appropriately addressed in accordance with College policies and procedures



5

The objectives of this internal audit were as follows:

A. Determine whether internal controls over Student Services processes are designed to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations and compliance with College procedures and federal law.

B. Ensure that controls over selected critical processes within Student Services processes are operating efficiently, effectively, and resulting in consistent and compliant procedures.

C. Verify that user access to view and modify sensitive student records in Colleague, Maxient, AccuTrack and Titanium is restricted to appropriate personnel and that access is periodically reviewed.

Our procedures included conducting interviews and walkthroughs with key personnel within the Student Engagement and Retention Department to gain an understanding of the current processes in place, examining existing documentation, and evaluating the internal controls over the process. We evaluated the existing policies, procedures, and processes in their current state. Our coverage period was from July 1, 2017 through January 31, 2019. The internal audit scope did not include evaluating Advising processes that were included within the 2015 Internal Audit of Admissions and Registrar (Report #01-15).



6

Executive Summary

Through our interviews, walk-throughs, evaluation of internal control design and testing of transactions we identified six findings. The listing of findings include those items that have been identified and are considered to be non-compliance issues with documented Del Mar College policies and procedures, rules and regulations required by law, or where there is a lack of procedures or internal controls in place to cover risks to Del Mar College. These issues could have significant financial or operational implications. A summary of our results, by audit objective, is provided in the table below. See the Appendix for an overview of the Assessment and Risk Ratings.


SCOPE AREA RESULT RATING Objective A: Determine whether internal controls over Student Services processes are designed to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations and compliance with College procedures and federal law.

We identified 57 controls to be in place in the processes. However, there are opportunities to strengthen the processes and control environment including:

• Standardize procedures for tracking and documenting advising interactions with students

• Implement procedures for the assessment of tutoring needs

• Improve the current counseling staffing ratio to reduce wait times and comply with industry recommended ratios

• Implement a monthly review of retention documentation for students on probation or suspension who had a registration hold removed

• Revise the policy for students with disabilities to allow additional time for faculty to review, sign and return the Student Accommodation Notification Letters

STRONG



7


SCOPE AREA RESULT RATING Objective B: Ensure that controls over selected critical processes within Student Services processes are operating efficiently, effectively, and resulting in consistent and compliant procedures.

Controls appear to be in place; however, all are not consistently executed. We identified the following opportunities for improvement:

• Track and document advising sessions with students

• Review the removal of probation and suspension holds on a monthly basis

• Revise the policy for students with disabilities to ensure a sufficient and feasible timeframe for faculty to review, sign and return the Student Accommodation Notification Letters

STRONG

Objective C: Verify that user access to view and modify sensitive student records in Colleague, Maxient, AccuTrack and Titanium is restricted to appropriate personnel and that access is periodically reviewed.

Access to Colleague and AccuTrack is not appropriately restricted to all individuals evaluated and user access is not periodically reviewed for Titanium. Del Mar should remove inappropriate access to Colleague and AccuTrack and ensure that user access review is performed periodically for Titanium.

SATISFACTORY

Other opportunities for improvement were identified through our interviews, walk-throughs, evaluation of internal control design, and transactional testing. These observations include those items that are not considered to be non-compliance issues with documented College policies and procedures. These are considered process improvement observations and the intent of the recommendations is to strengthen current College processes and controls. The observations were provided to management separately.



8

Conclusion

Based on our evaluation, the College has procedures and controls in place to conduct effective management of the significant processes of the Student Services function within Del Mar College. However, we identified six opportunities to improve the effectiveness of the controls within the Student Services processes. Specifically, the College should remove inappropriate access to Colleague and AccuTrack. Additionally, the College should implement an annual user access review for each system utilized in performing student services functions to ensure that access is appropriate and aligns with the roles and duties of the assigned personnel. The College should implement College-wide procedures and standardized forms/checklists for tracking and documenting advising interactions with students. Additionally, to ensure that all required steps are completed by students on academic probation and suspension, the College should implement a monthly review of retention documentation to ensure completeness and accuracy. Further, the Student Success Center should implement procedures for the assessment of tutoring needs before the start of each semester and monthly during the semester to ensure that the appropriate number of tutors is hired. The College should also consider revising the existing policy for students with disabilities to allow additional time that is more feasible for faculty to review, sign and return the Student Accommodation Notification Letter to the Disability Support Specialists. The revised policy should allow faculty at least three working days to sign and return the notification letters. The College should continue its efforts to hire additional Counselors and improve the current staffing ratio to reduce wait times and to comply with industry recommendations prescribed by the International Association of Counselling Services. Follow-up procedures will be performed in Fiscal Year 2020 to evaluate the effectiveness of remediation efforts taken to address the findings identified.

Detailed Procedures Performed, Findings, Recommendations and Management

Response



10

Detailed Procedures Performed, Findings, Recommendations and Management Response Our procedures included interviews and walkthroughs with key personnel within the Student Engagement and Retention Department to gain an understanding of the current processes in place, examining existing documentation, and evaluating the internal controls over the processes. We evaluated the existing policies, procedures, and processes in their current state. Objective A: Design of Internal Controls Determine whether internal controls over Student Services processes are designed to ensure that consistent processes are implemented and designed effectively to address the risks within the associated sub-processes and to ensure effective operations and compliance with College procedures and federal law. Procedures Performed: We conducted interviews and walkthroughs with key personnel within the Student Engagement and Retention Department and examined existing documentation to gain an understanding of the current Student Services processes from student advising and tutoring, through counseling, retention and career development services, to services for students with disabilities and performing student disciplinary actions. We documented our understanding of the processes in a bullet point format, identifying controls over the following sub processes:

• Student Advising • Tutoring • Student Counselling • Student Retention • Career Development Services • Students with Disabilities • Student and Title IX Complaints • Student Disciplinary Action

We evaluated whether the identified internal controls are sufficiently designed to comply with College policies and procedures and mitigate all critical risks associated with Student Services processes. We identified any unacceptable risk exposures due to control design inadequacy or any opportunities to strengthen the effectiveness of the existing control design. Results: We identified 57 controls in place over the significant activities within the Student Services functions. We identified five findings where improvements in the process can be made.



11

Finding 1 – Moderate – Advising Sessions Documentation: The College does not have a standardized process for Advisors to document interactions with students. Currently, Advisors document advising sessions with students by either completing the student's Education Plan or an Advising Checklist. Student Education Plans are utilized by academic department Advisors for students who have declared their majors whereas advising sessions for undeclared students are often documented and tracked through an Advising Checklist. Upon utilization and completion of the Education Plan, both the student and the Advisor sign-off on the document, which is then provided to the student. However, the Education Plans are not consistently utilized by academic department Advisors throughout the College. Alternatively, the Advising Checklist is utilized by Student Enrollment Specialists within the Student Enrollment Center for students majoring in Liberal Arts or students who are undecided, but is not leveraged by other Advisors throughout the College. We selected a sample of 25 out of 29,821 students who applied during the period of July 1, 2017, through January 31, 2019 to verify whether the student met with the appropriate Advisors and whether their advising sessions were adequately documented. We identified that evidence of advising was not available for 20 students to verify compliance with College policies and procedures.

Process Area Control Coverage Findings

Student Services Processes

Student Advising 4 Finding 1

Tutoring 11 Finding 2

Student Counseling 8 Finding 3

Student Retention 9 Finding 4

Career Development Services 2 -

Students with Disabilities 4 Finding 5

Student and Title IX Complaints 11 -

Student Disciplinary Action 8 -

Total 57



12

Recommendation: The College should implement College-wide procedures and standardized forms/checklists for tracking and documenting advising interactions with students. These procedures may include steps such as completion of the student’s Education Plan or the Advising Checklist. The procedures should be formally documented, distributed to all advising staff, and acknowledgement received from each Advisor. Additionally, the College should utilize the Etrieve imaging system to maintain advising documentation within the student’s file. Management Response: The College has chosen the topic of Advising for the QEP. The Director of Admissions and several others from the college are developing checklists, training modules relevant to creating a standardized Advising component. This group will also create a plan of completion for advisors to follow. The team will create procedures and distribute to all those that advise students in the college. In addition the Director is working with IT to formulate a process to retain advising comments in the system. Process for maintaining documents will be available in the college imaging system in each of the student's file. Responsible Party: Director Admissions Implementation Date: May 31, 2019

Finding 2 – Low – Assessment of Tutoring Needs: The Student Success Center does not have established procedures in place to formally asses the College's tutoring needs and to ensure that the Center has a sufficient number of tutors. Additionally, the Student Success Center does not perform any formal analysis of past tutoring sessions to adequately determine the tutoring need. Currently, the Tutor Support Services Coordinator utilizes professional judgement and past experience to determine the need for tutors at the Student Success Center. Tutors for certain subjects, such as Chemistry, are traditionally in high demand and can be insufficient to meet peak demands. Recommendation: The Student Success Center should implement procedures for the assessment of tutoring needs before the start of each semester and monthly during the semester. The Tutor Support Services Coordinator should obtain a report of past tutoring sessions from the AccuTrack system and analyze the historical data to estimate the need for tutors. Alternately, the College should update the tutoring survey provided to students after every third tutoring session, to include questions about students' satisfaction related to the number of tutors for each subject and the availability of tutoring. The College should periodically evaluate the timing of when surveys are sent (i.e. after every visit or third visit) and student responses to ensure the College has a sufficient number of tutors with sufficient availability, across all subjects.



13

Management Response: Management agrees with the condition as stated. Management has created written procedures in order to formally assess the College’s peer tutoring needs and to ensure the College has a sufficient amount of tutors. The procedures are now embedded in the Tutoring Program Standard Operating Procedures. The Tutor Coordinator will gauge the need for specific discipline tutors before the start of each semester, monthly, or as demand for specific tutoring needs arise. The Tutor Coordinator will evaluate and analyze past data through AccuTrack of tutoring sessions held by disciplines to determine the number of tutors needed. A peer tutor survey is given after every 3rd visit and it includes questions which address how students feel about the tutoring provided and the number of tutors for each discipline and additional feedback. The Student Success Center Director will continue to request annual Institutional Research reports on Student Success Center Tutoring Services and how to gauge student course success by specific set of criteria which will identify the need for tutors in all disciplines. The Student Success Center Director and Tutor Coordinator will evaluate weekly updated Enrollment Reports by Academic Period, Department, Subject, Course, Instruction Method, and Actual Enrollment, etc. Responsible Party: Director of Student Services Implementation Date: July 1, 2019

Finding 3 – Low – Counselling Staff and Student Ratio: The College is not meeting counseling staffing requirements prescribed by the International Association of Counseling Services for the recommended staff to student ratio. Currently, the College employs 2.5 Full Time Equivalent (FTE) Licensed Professional Counselors within the College’s Counseling Center for a total Full Time Equivalent Student count of 7,677, as of Fall 2018. The current student to professional counselor ratio is approximately 3,000 to 1. According to the International Association of Counseling Services Standards for University and College Counseling Services, the recommended minimum staffing ratios should be in the range of 1 FTE Professional Counselor for every 1,000 to 1,500 students. Due to the elevated counselling staff to student ratio, students may experience an increased waiting time to meet with a Counselor. However, the College Counseling staff do utilize professional judgement to assess the severity of the student’s issues and may give priority to students who require immediate attention. From our evaluation of the Titanium Intake Wait Time Report from July 1, 2017, through January 31, 2019, the average wait time for a counseling appointment was 6 days.

Recommendation: The College should continue its efforts to hire additional Counselors and improve the current staffing ratio to reduce wait times and to comply with industry standards prescribed by the International Association of Counselling Services. Additionally, the College should monitor wait times to ensure students are being seen during an appropriate timeframe.



14

Management Response: Management agrees with the condition as stated. Management submitted one full-time and one part-time counselor position justification request for FY20 consideration. Acknowledging the current manpower is unsustainable given the conservative 3% projected annual enrollment growth and ratio standards set by the IACCS, management developed a 3-year Staffing Ration Get Well plan including budget requests. Upon Executive Team approval, adding 1FT + 1PT counselor in FY20 achieves a 2,108:1 staffing ratio. Continued commitment to add 1FT improves the ratio again in FY21 (1,714:1) and FY22 (1,458:1). Intermediate steps and actions taking place to mitigate the risk in the short term include continued collaboration with Texas A&M University- Corpus Christi and Texas A&M University - Kingsville graduate counseling programs. The DMC Counseling Center is an approved practicum and internship site for graduate counseling students. The graduate students will provide prevention and awareness programming while relieving professional staff of this duty and providing more availability for counseling sessions. Graduate students, upon demonstrating competency, may also assist with initial screenings in an effort to reduce wait times for an initial appointments. According to IACS, only fully licensed professionals can be included in calculating ratios. Graduate students are unlicensed. Responsible Party: Lead Counselor Implementation Date: August 31, 2019, full implementation January 2022 Finding 4 – Low – Secondary Review of Retention Documentation: The College does not have procedures in place to facilitate a secondary review of Retention Case Managers’ (RCMs) retention documentation to ensure that all required documentation is received prior to removal of registration holds for students on academic probation or suspension. Students on probation or suspension are required to complete a Smarter Measure Assessment prior to meeting with an RCM. The Smarter Measure Assessment evaluates the student's learning readiness as well as potential areas of concern, such as a lack of non-academic resources. Upon meeting with an RCM, the student and RCM complete a Goal Sheet, outlining areas for improvement and action steps. Following the meeting with the student, the RCM documents the meeting in Colleague and removes the student's registration hold. Students on suspension are required to complete additional steps such as meeting with an academic advisor and an academic dean, prior to removal of the registration hold. We selected a sample of 30 out of 1,672 students on academic probation or suspension, who had registration holds removed, for the period of July 1, 2017, through January 31, 2019 to verify whether students completed all required steps under the Academic Retention Program (ARP), prior to removal of their registration hold. We identified the following exceptions involving 2 students:

• 1 student on probation did not complete a Smarter Measures Assessment and a Goal Sheet prior to having the registration hold removed. Additionally, no evidence that the student met with an RCM was provided.

• 1 student on probation did not meet with an RCM and complete a Goal Sheet prior to having the registration hold removed



15

Recommendation: In the short term, the Student Engagement and Retention Office should implement a monthly review of retention documentation for students on probation or suspension who had a registration hold removed to ensure that all required steps were completed by students. The Director of Counseling, Disability, and Retention should review supporting documentation for students who had the hold removed to verify that all required steps have been completed and appropriate documentation is maintained by the RCMs. Students who did not meet the requirements for removal of the hold should be immediately contacted by RCMs and instructed to complete the required steps. Additionally, their holds should be reinstated in the system, if necessary. In the long term, the Student Engagement and Retention Office should implement an automated checklist for tracking and documenting the completion of required steps for removal of probation and suspension holds. The checklist could be a requirement of the new ERP system. Management Response: While management agrees procedures are not in place to facilitate a secondary review of RCM documentation prior to probation hold removal, secondary review does exist for suspension students as RCMs are step 1 of a 4-step process. The process in place during the scope period permitted some discretion to remove holds during peak client traffic periods (e.g., late July thru mid August + early to mid January) as was the case with the two noted exceptions. Discretion was rescinded effective January 2019 based on unanimous RCM input. All RCMs + staff are trained in the protocol. The Director of Counseling, Disability, and Retention Services will audit all 2019SP probation student hold removals for compliance (i.e., SM complete, intake form & goals sheet archived). Holds will be reinstated if necessary. The Director of Counseling, Disability, and Retention Services will perform this audit at the beginning of each academic term going forward until automation is possible. Moving forward, automated required sequential milestones will be explored with the next generation ERP. Responsible Party: Director of Counseling, Disability, and Retention Services Implementation Date: May 31, 2019

Finding 5 – Low – Disability Accommodation Letters: The Disability Services Office staff do not consistently obtain signed Student Accommodation Notification Letters from faculty in a timely manner. According to the College’s “Services for Students with Disabilities” policy, Student Accommodation Letters must be signed and returned by faculty within 24 hours of their receipt. Currently, the Disability Services Office staff maintains an Excel log to track and monitor faculty signoffs on the accommodation letters. We selected a sample of 50 out of 866 students who received accommodations for the period of July 1, 2017, through January 31, 2019 to verify whether requests for accommodation were adequately documented and processed in accordance with ADA and College requirements. We identified 68 exceptions across 119 accommodation letters submitted by 38 students:

• 15 Student Accommodation Notification Letters were not signed and returned by faculty • 53 Student Accommodation Notification Letters were not signed by faculty within 24 hours

of being sent



16

Recommendation: The College should consider revising the existing policy to allow additional time that is more feasible for faculty to review, sign and return the Student Accommodation Notification Letter to the Disability Support Specialist. The revised policy should allow faculty at least three working days to sign and return the notification letters. Alternately, the Disability Services Office should implement procedures to follow up with faculty immediately one working day after the Student Accommodation Notification Letter was provided to faculty for review and signoff to inquire as to why the letter was not returned. If the letter is not returned by faculty after two working days, the Disability Support Specialist should appropriately escalate the request to Department Leadership until the signed letter is provided.

Management Response: Management agrees with the condition as stated. Management drafted a policy revision of A7.8 Services for Students with Disabilities to include removal of the stringent 1-day requirement in favor of a more feasible timeline for faculty to receive, review, sign, and return the Classroom Accommodation Notification form. The policy revisions were submitted to Administration on May 9, 2019. Additionally, the revised policy will be communicated to stakeholders and incorporated into future professional development and training. Further, management plans to codify for action the internal office DSO Faculty Notification Memo Retrieval Protocol--field tested during 2019SP--containing phased escalation up to and including academic departmental leadership when chasing unsigned/unreturned letters. Responsible Party: Director of Counseling, Disability, and Retention Services Implementation Date: August 19, 2019

Objective B: Effectiveness of Controls Ensure that controls over selected critical processes within Student Services processes are operating efficiently, effectively, and resulting in consistent and compliant procedures. 1. Procedures Performed: We selected a sample of 25 out of 29,821 students who applied during the

period of July 1, 2017, through January 31, 2019. For selected students, we verified whether they met with the appropriate Advisor and whether advising sessions were adequately documented. Results: We identified that evidence of the advising session was not available for review and evaluation for 20 students to verify compliance with College policies and procedures.

Finding 1 – Moderate – Advising Sessions Documentation 2. Procedures Performed: We selected a sample of 5 out of 30 peer Tutors identified in the AccuTrack

report of all tutoring sessions performed during the period of July 1, 2017 through January 31, 2019. For each selected Tutor, we verified the following:

• The tutor is currently maintaining an overall GPA of 3.0 • The tutor is maintaining a 3.0 GPA in the course in which the tutor is providing tutoring services • The tutor is certified through the College Reading & Learning Association(CRLA) or currently

achieving the certification requirements • The tutor received required CRLA and internal training



17

Results: No findings identified. 3. Procedures Performed: We selected a sample of 50 out of 2,514 counseling sessions that occurred

during the period of July 1, 2017, through January 31, 2019 and verified whether the counseling sessions were adequately documented in the Titanium system by Counseling Staff. Results: No findings identified.

4. Procedures Performed: We reviewed the Del Mar College Counseling Center Intake Wait Time Report

to evaluate the average intake time for counseling sessions that occurred during the period of July 1, 2017, through January 31, 2019. We verified whether counseling services are provided timely to students and meet industry best practices identified by the International Association of Counseling Services Standards for University and College Counseling Services. Results: We determined that the average wait time for a counseling appointment was 6 days, which exceeds industry best practices due to a current student to professional counselor ratio of 3,000 to 1.

Finding 3 – Low – Counselling Staff and Student Ratio

5. Procedures Performed: We selected a sample of 30 out of 1,672 students on academic probation or

suspension, who had registration holds removed, for the period of July 1, 2017, through January 31, 2019, to verify whether students completed all required steps under the Academic Retention Program (ARP), prior to removal of their registration holds, including:

Probation:

A. Smarter Measure Assessment B. Meeting with Retention Case Manager (RCM) – ARP Intake Form C. Completion of Goals Sheet

Suspension:

A. Smarter Measure Assessment B. Meeting with Retention Case Manager (RCM) – ARP Intake Form C. Completion of Goals Sheet D. Completion of Academic Suspension Appeal Form E. Meeting with Academic Advisor F. Meeting with Academic Dean

Additionally, we verified whether the registration hold was removed timely after all the required steps were completed and that the student was classified appropriately in the system. Results: We identified the following exceptions involving 2 students on probation or suspension:

• 1 student on probation did not complete a Smarter Measures Assessment and a Goal Sheet prior to having the registration hold removed. Additionally, no evidence that the student met with an RCM was provided

• 1 student on probation did not meet with an RCM and complete a Goal Sheet prior to having the registration hold removed

Finding 4 – Low – Secondary Review of Retention Documentation



18

6. Procedures Performed: We selected a sample of 50 out of 866 students who received disability accommodations for the period of July 1, 2017, through January 31, 2019. For each selected student, we verified the following:

• Student files had a completed request for accommodation • Requests for accommodation were processed in accordance with College Policies and

Procedures and ADA requirements, including meeting with a Disability Specialist and Faculty approval was obtained within 24 hours of the submitted request.

• Students provided adequate supporting documentation and the documentation is recorded in the student's file

• Requests for accommodation were processed timely (within 2 business days), including Disability Specialist approval and letter creation

Results: We identified 68 exceptions across 119 accommodation letters submitted by 38 students, which included:

• 15 Student Accommodation Notification Letters were not signed and returned by faculty • 53 Student Accommodation Notification Letters were not signed by faculty within 24 hours

of being sent

Finding 5 – Low – Disability Accommodation Letters 7. Procedures Performed: We selected a sample of 7 out of 20 student complaints (including Title IX

complaints) that were submitted during the period of July 1, 2017, through January 31, 2019. For each selected student complaint, we verified the complaints were:

• Adequately documented • Processed in accordance with College policies and procedures • Referred to the appropriate individual and processed in accordance with College criteria for

complaints involving discrimination, harassment, and retaliation, if applicable • Processed in a timely manner

Results: No findings identified.

8. Procedures Performed: We selected a sample of 5 out of 16 student misconduct cases that were submitted during the period of July 1, 2017, through January 31, 2019. For each selected misconduct case, we verified the misconducts were:

• Adequately documented • Processed in accordance with College policies and procedures resulting in appropriate

disciplinary action • Processed in a timely manner

Results: No findings identified.



19

Objective C: Appropriateness of System Access Verify that user access to view and modify sensitive student records in Colleague, Maxient, AccuTrack and Titanium is restricted to appropriate personnel and that access is periodically reviewed. Procedures Performed: We evaluated user access within the Colleague, Maxient, AccuTrack, and Titanium systems, to determine whether access to view and modify sensitive student records is restricted to appropriate personnel and that access is periodically reviewed.

• We obtained a listing of personnel with access to the systems utilized within the Student Services processes, including Colleague, Maxient, AccuTrack, and Titanium, and evaluated whether personnel access is reasonable, appropriately restricted, and based on their job function

• We verified whether user access has been formally reviewed and evaluated annually Results: We identified three instances in which access to Colleague and AccuTrack does not align with employee’s current job function. In addition, we determined that user access within Titanium is not periodically reviewed to ensure access is appropriately restricted based on job function.

Finding 6 – Moderate – Inappropriate User Access: We reviewed and evaluated the level of user access within each system used in the Student Services processes to verify whether user access is reasonable and appropriate based on user’s current job function and duties. We identified the following instances in which access was not appropriate: Colleague

• 1 part-time staff within Retention Services has modify access to the PHIN screen in Colleague which is not necessary for their current job function. PHIN screen is utilized for entering the disability codes for students with approved disability accommodations.

AccuTrack

• 2 users with Front Desk level access in AccuTrack were no longer employed within the Student Success Center. Front Desk Access gives users the ability to modify Student sign in logs and track Student visits. We examined supporting documentation and verified access was formally removed during fieldwork testing.

In addition, we determined that user access within Titanium is not periodically reviewed to ensure access is appropriately restricted. Recommendation: The College should coordinate with Information Technology to remove inappropriate access to Colleague and AccuTrack. Access to student services functions should be appropriately restricted based on the user's current job function and duties. In addition, the College should review user access within each system utilized in performing student services functions at least annually to ensure that access is appropriate and aligns with the roles and duties of the assigned personnel.



20

Management Response: Colleague: Management agrees with the condition as stated. Management emailed IT on May 2, 2019, requesting PHIN screen access be rescinded for Retention Services whose access was associated with previous employment and is not required in the current role. The Administrator will begin coordinating with Information Technology to review user access upon hire and annually at the start of each fiscal year. An excel spreadsheet detailing user permissions along with screen shots of access will be stored in the Retention Services SharePoint. Responsible Party: Director of Counseling, Disability, and Retention Services Implementation Date: May 2, 2019 Management Response: Titanium: Management agrees with the condition as stated. Management is in agreement with this finding. The department has established a plan to periodically review user access within Titanium to ensure access is appropriately restricted. Currently, user access is reviewed upon hire, change in licensure status or upon separation from the department or the College. The Titanium System Administrator will now review user access at the start of each fiscal year. An excel spreadsheet detailing user permissions along with screen shots of access will be stored on the Counseling Center SharePoint. Responsible Party: Lead Counselor/Titanium Administrator Implementation Date: September 2, 2019 Management Response: AccuTrack: Management agrees with the condition as stated. The AccuTrack Administrator will now coordinate with Information Technology to review user access upon new employee hire and annually at the start of each fiscal year to ensure that access is appropriate and aligns with the roles and duties of the assigned personnel. An excel spreadsheet detailing user permissions along with screen shots of access will be stored on the Student Success Center SharePoint. Responsible Party: Director, Student Success Center Implementation Date: May 28, 2019

Appendix



22

The appendix defines the approach and classifications utilized by Internal Audit to assess the residual risk of the area under review, the priority of the findings identified, and the overall assessment of the procedures performed. Report Ratings

The report rating encompasses the entire scope of the engagement and expresses the aggregate impact of the exceptions identified during our test work on one or more of the following objectives:

• Operating or program objectives and goals conform with those of the College • College objectives and goals are being met • The activity under review is functioning in a manner which ensures:

o Reliability and integrity of financial and operational information o Effectiveness and efficiency of operations and programs o Safeguarding of assets o Compliance with laws, regulations, policies, procedures and contracts

The following ratings are used to articulate the overall magnitude of the impact on the established criteria:

The area under review meets the expected level. No high risk rated findings and only a few moderate or low findings were identified. The area under review does not consistently meet the expected level. Several findings were identified and require routine efforts to correct, but do not significantly impair the control environment. The area under review is weak and frequently falls below expected levels. Numerous findings were identified that require substantial effort to correct.

Strong

Satisfactory

Unsatisfactory



23

Risk Ratings

Residual risk is the risk derived from the environment after considering the mitigating effect of internal controls. The area under audit has been assessed from a residual risk level utilizing the following risk management classification system.

High risk findings have qualitative factors that include, but are not limited to:

• Events that threaten the College’s achievement of strategic objectives or continued existence

• Impact of the finding could be felt outside of the College or beyond a single function or department

• Potential material impact to operations or the College’s finances

• Remediation requires significant involvement from senior College management

. Moderate risk findings have qualitative factors that include, but are not limited to:

• Events that could threaten financial or operational objectives of the College

• Impact could be felt outside of the College or across more than one function of the College

• Noticeable and possibly material impact to the operations or finances of the College

• Remediation efforts that will require the direct involvement of functional leader(s)

• May require senior College management to be updated

Low risk findings have qualitative factors that include, but are not limited to:

• Events that do not directly threaten the College’s strategic priorities

• Impact is limited to a single function within the College

• Minimal financial or operational impact to the College

• Require functional leader(s) to be kept updated, or have other controls that help to mitigate the related risk

High

Moderate

Low

Del Mar College IA # 07-2019 Internal Audit Follow-Up Procedures Report Over Purchasing Report Date: April 25, 2019 Issued: May 30, 2019

C O N T E N T S

Page

Internal Audit Report Transmittal Letter to the President ...................................................................................... 1 Background.................................................................................................................................................................. 2 Follow-Up Objective and Scope .............................................................................................................................. 2 Executive Summary ..................................................................................................................................................... 2 Conclusion .................................................................................................................................................................... 3 Detailed Follow-Up Results, Recommendations and Management Response ................................................ 4

Appendix .................................................................................................................................................................... 10

Weaver and Tidwell, L.L.P. 1601 South MoPac Expressway, Suite D250 | Austin, Texas 78746

Main: 512.609.1900 | Fax: 512.609.1911 CPAs AND ADVISORS | WEAVER.COM

Austin | Conroe | Dallas | Fort Worth | Houston Los Angeles | Midland | New York City | San Antonio

Dr. Mark Escamilla Del Mar College 101 Baldwin Blvd. Corpus Christi, Texas 78404 This report presents the results of the internal audit follow-up procedures performed for Del Mar College (the College) during the period March 1, 2019 through April 25, 2019 related to the findings from the Internal Audit Report over Purchasing dated December 15, 2016. The objective of these follow-up procedures was to validate that adequate corrective action has been taken in order to remediate the issues identified in the 2017 Internal Audit Report over Purchasing. To accomplish this objective, we conducted interviews with key personnel within the Purchasing and Business Services Department responsible for administrating the Purchasing processes, reviewed documentation and performed specific testing procedures to validate actions taken. Procedures were performed at Del Mar College and an exit meeting was conducted on April 25, 2019. The following report summarizes the findings identified, risks to the organization, recommendations for improvement and management’s responses.

WEAVER AND TIDWELL, L.L.P. Austin, Texas May 30, 2019

Del Mar College IA # 07-2019 Internal Audit Follow-Up Procedures Report over Purchasing

April 25, 2019 Issued: May 30, 2019

2

Background In fiscal year 2017, internal audit procedures over Del Mar’s Purchasing process were completed and reported to the President. The internal audit report over Del Mar’s Purchasing procedures and activities identified 13 areas for improvement related to the adequate segregation of duties, consistent execution of procedures, completion of process documentation, monitoring purchases as well as appropriate access to purchasing screens in Colleague. In fiscal year 2018, follow-up procedures were performed to validate that Del Mar Management had taken steps to address the open internal audit findings. As a result of those follow-up procedures, four findings were determined to be remediated and nine were determined to be partially remediated. The 2019 Internal Audit Plan included performing follow-up procedures to validate that Del Mar Management has taken steps to address the remaining nine partially remediated internal audit findings. Follow-Up Objective and Scope The follow-up procedures focused on the remediation efforts taken by Del Mar Management to address the findings included in the 2017 Internal Audit Report over Purchasing, and to validate that appropriate corrective action had been taken. We evaluated the corrective action of the nine open internal audit findings identified in the 2017 Internal Audit Report over Purchasing. Additionally, we evaluated the corrective action taken by management to address the observations identified in the 2017 Internal Audit over Purchasing that were provided separately. Executive Summary The findings from the 2017 Internal Audit Report over Purchasing include those items that were identified and are considered to be non-compliance issues with Del Mar’s policies and procedures, rules and regulations required by law, or where there is a lack of procedures or internal controls in place to cover risks to Del Mar. These issues could have significant financial or operational implications. Through our interviews, review of documentation, observations and testing we determined that of the nine findings where corrective action was evaluated, five were fully remediated, two were partially remediated, and two were not remediated. A summary of our results is provided in the table below.

Risk Rating Total Findings Previously Remediated Remediated Partially

Remediated Open

High 5 1 2 1 1 Moderate 8 3 3 1 1 Low - - - - - Total 13 4 5 2 2



3

Conclusion Based on our evaluation, College Management made efforts to remediate the findings from the 2017 Internal Audit Report. However, the College should continue their efforts to address the remaining partially remediated and open findings. Specifically, the College should perform a periodic review of the vendor master file to ensure that all dormant and duplicate vendors are adequately marked or removed from the system. In addition, the College should ensure that purchase orders related to cooperative agreements are adequately reported. Further, the College should implement a formal delegation of authority for approval of contracts and ensure that contracts are renewed in a timely manner. Follow-up procedures should be conducted in Fiscal Year 2020 to validate the effectiveness of the remediation efforts taken to address the remaining open findings.

Detailed Follow-Up Results, Findings, Recommendations and Management

Response



5

Detailed Follow-Up Results, Recommendations and Management Response Our procedures included interviewing key Purchasing personnel to gain an understanding of the corrective actions taken in order to address the findings identified in the 2017 Internal Audit Report over Purchasing, as well as examining existing documentation, communications, and performing testing in order to validate those corrective actions. We evaluated the existing policies, procedures, and processes in their current state. Finding 1 – Moderate – Lack of Segregation of Duties in Initiation and Approval of Purchase Requisitions and Purchase Orders: The purchasing process includes a lack of segregation of duties within Colleague, which can allow purchase requisitioners to approve their own requests. In addition, within the Purchasing Department, purchase requests and the corresponding purchase orders can be initiated and approved by the same Purchasing staff. Results: Finding remediated Based on our review of the user access report, we verified that IT implemented user profile roles in Colleague and that user access to purchasing screens in Colleague is appropriate. Purchasing personnel still have the ability to both prepare and approve purchase orders, as it is deemed necessary to perform their duties. The Purchasing Department has revised the Purchasing Standard Operating Procedures whereby designated preparers may create a requisition, but a budget authority outside of Purchasing must approve. Once the requisition is fully approved, the requisition is then assigned to another purchasing staff member for further processing. In addition, Purchasing has implemented a Staff Budget Access form to formalize the initiation and approval of changes to user access. The form must be approved by the user's Executive Team member and Budget Manager and submitted to Business Services for budget approval prior to final approval by Purchasing. Finding 2 – Moderate – Usage of Commodity Codes and Consolidation of Similar Purchases: Del Mar College does not have a process in place to utilize commodity codes within Colleague to identity, monitor, and consolidate the purchasing of similar items submitted by differing departments in order to achieve cost savings and reduce purchase processing times.

Results: Finding remediated We determined that Purchasing has implemented procedures to utilize commodity codes when processing purchase requests and setting up new vendor profiles within Colleague. The updated Vendor Application Form requires new vendors to select up to six different commodity codes to assist the College in determining what type of service or product the vendor provides. We obtained a listing of commodity codes being utilized within Colleague by Purchasing. The College utilizes a standard set of commodity codes available from the National Institute of Governmental Purchasing (NIGP) Commodity Listing. We obtained a report of all purchase orders issued from September 1, 2018 through January 31, 2019. The report details the purchase order date, status, and commodity code. We analyzed the report and determined that commodity codes were entered for all 1002 valid purchase orders and blanket purchase orders included in the report.



6

Finding 4 – Moderate – Reporting of Vendor Transactions from Cooperative Purchasing Agreements: There is no formal and systematic process in place to identify, monitor, and document which vendor transactions are required to be self-reported by the College to the respective Cooperative. However, Purchasing staff is currently compiling a listing of vendors and Cooperative Purchasing Agreements that require the College to self-report purchasing transactions, which is also included by the Buyers in the notes section within the purchase order.

Results: Finding partially remediated We obtained and reviewed the revised Standard Operating Procedures for purchasing which include COOP reporting requirements for each of the cooperative purchasing contract utilized by the College. Purchasing has revised procedures to reinforce the business practice of documenting COOP reporting requirements within the Printed Comments field of a purchase order in Colleague and reporting transactions on behalf of the vendor, as necessary. We obtained a system generated report of all purchase orders processed from September 1, 2018 through January 31, 2019 and selected a random sample of 50 purchase orders from vendors associated with purchasing cooperatives. We determined that of the 50 purchase orders tested, one was not reported within 30 days by the Purchasing Department. This purchase order transaction was reported to the COOP BuyBoard during our follow-up audit procedures, 43 days after the date of the purchase order. Management’s Response: The Department of Purchasing implemented a new business practice that will allow for timely reporting of purchase orders to purchasing cooperatives. The College experienced a significant reduction of untimely reporting of purchase orders to purchasing cooperatives within 30 days. To further improve the process, the Purchasing Office will implement on a test basis a monthly quality review. Responsible Party: Assistant Director of Purchasing Implementation Date: June 1, 2019 Finding 5 – High – Lack of Formal Delegation of Authority: Although the Purchasing Department has an established delegation of authority for the approval of purchase orders, the College does not have a formalized delegation of authority with specific, defined thresholds for the approval of contracts by College Management and/or the Board, such as those contracts over $50,000. The Director of Purchasing currently has the highest level of purchasing authority, and sensitive purchases or those with potential reputation risks are brought to the Chief Financial Officer (CFO) and/or the Board if deemed necessary by the Director of Purchasing.

Results: Finding not remediated

According to Del Mar’s Management, no procedures have been implemented by the College to address this finding. Therefore, no follow-up procedures were performed. Management’s Response: The College's current informal delegation of authority is conducive to committing the College’s resources by the President or designee as either a Vice President or Executive Director. However, Del Mar College will formalize the authority by documenting the President's designee to the respective business related executive team member. Responsible Party: Vice President & CFO and Vice President of Administration & Human Resources Implementation Date: May 14, 2019



7

Finding 6 – Moderate – Contract Renewals are Not Initiated Timely: Contract renewals are not systematically monitored and flagged to ensure timely action to prevent expiration while goods or services are still being purchased under the contract. The Purchasing Department relies on individual departments to notify them when contracts are being renewed. However, the communication is not performed consistently and has resulted in instances of contract renewals being delayed and occurring after expiration.

Results: Finding not remediated According to Del Mar’s Management, no procedures have been implemented by the College to address this finding. Therefore, no follow-up procedures were performed. Management’s Response: The Department of Risk Management and the Office of Purchasing are working collaboratively to design operating activities that will result in timely contract renewals. This includes filling open positions, adding a new position, ramping up an outdated technology solution, and exploring a new software solution. Responsible Party: Assistant Director of Purchasing and Risk Manager Implementation Date: July 1, 2019 Finding 8 – High – Vendor List is Not Monitored: The Purchasing Department does not have procedures in place to monitor and update the active vendor listing. All vendors that have been requested for use by departments over the year across the College are included in the active vendor listing. The vendor list is not periodically analyzed to identify vendors who are not active vendors, duplicate vendors, vendors with incomplete information, or vendors who are also employees of the College. Additionally, vendors are not periodically evaluated for performance along with assessing their stability and financial viability. During testing, we evaluated the vendor population within Colleague for duplicate and dormant accounts. Of the 4,247 trade vendors within Colleague, we identified 66 vendors with duplicate accounts in Colleague, which included:

• 62 vendors with 2-5 duplicate accounts in the system • 2 vendors with 6-9 duplicate accounts in the system • 2 vendors with over 9 duplicate accounts in the system

Further, we identified the College vendor listing includes 32,470 individuals (non-corporate entities) as active vendors. These individuals could be former students, employees, or temporary/contract employees. However, the active employee listing for the College only includes 1,569 individuals. In addition, we excluded educational institutions and individuals from the vendor listing and analyzed the vendors who did not have any purchase activity in at least 24 months, identifying 3,518 potential dormant vendors and selected a sample of 10. We confirmed that five of the 10 were dormant vendors. We isolated the trade vendors from the College’s vendor listing and identified five vendors with addresses that matched employee addresses. These vendors were deactivated by the Assistant Director of Purchasing upon identification. Only one of the five vendors had a purchase which was processed on September 21, 2016 totaling $178.95.

We also identified 60 vendor accounts with missing vendor tax ID information (SSN or TIN) in Colleague.



8

Results: Finding partially remediated Purchasing Department has implemented a purge of inactive vendors. Quarterly, Purchasing reviews a "Last Paid over 2 years" report to identify and purge the inactive vendors. We performed data analysis on the most recent quarterly purge report and identified a total of 15 vendors with the last activity date older than December 1, 2016, still flagged as active vendors in the Vendor Master File. We performed data analysis on the Vendor Master File and determined that one vendor has two accounts, none of which were flagged as "Inactive" in the system. Management’s Response: As a result of the auditors original auditing finding, the Department of Purchasing implemented a vendor purge process resulting in significant reductions in the number of dormant and duplicate vendors. The Department will work with the Office of Information Technology to enhance this new business practice to further reduce the number of dormant and duplicate vendors.

Responsible Party: Assistant Director of Purchasing Implementation Date: June 15, 2019 Finding 10 – Moderate – Lack of Formal Monitoring of Split, Serial, and Sequential Purchases: The Purchasing Department does not perform formal monitoring to identify serial, sequential or split purchases to ensure that purchase are not being split to circumvent controls. Although Buyers investigate questionable purchases on an ad hoc basis, no formal monitoring or reports of purchases near established thresholds are generated and reviewed on a periodic basis. We identified 19 vendors with 114 Purchase Order's as potential split, serial or sequential purchases by analyzing the Purchase Orders issued to the same vendor within a seven day period, where the cumulative value of the Purchase Orders surpassed the $10,000 quotation or $50,000 bid threshold. We confirmed one occurrence within the 114 Purchase Orders of similar items being purchased on two separate purchase orders and the College did not obtain the required number of quotes. Results: Finding remediated We reviewed the revised Standard Operating Procedures and verified that it includes formal monitoring of split, serial, and sequential purchases. Monthly, the Assistant Director of Purchasing reviews a Colleague report with vendor requisitions for prior month to determine whether there are any attempts to circumvent the bidding requirements. If split, serial or sequential purchases are identified, the Assistant Director would contact the end user department to determine the cause and provide training as needed. We reviewed the Colleague requisition report for January 2019 and verified that it was reviewed for split, serial and sequential purchases by the Assistant Director of Purchasing. Finding 12 – High – Lack of Defined User Profiles and Access Restrictions: The College does not utilize role-based access for security administration within the Purchasing Department. There are no defined user profiles with access rights or permissions that are required for the various Purchasing staff. Access rights are granted by copying the rights and permissions associated with the user ID of the personal who previously held the Purchasing position. In addition, there is no annual review of access and permissions for Purchasing and Del Mar staff that have creation and approval functions within purchasing screens of Colleague. (See Finding 4 in the 2016 Internal Audit Report of IT General Controls) Results: Finding remediated



9

Based on our review of the user access report, we verified that IT implemented user profile roles in Colleague and that user access to purchasing screens in Colleague is appropriate. In addition, Purchasing has implemented a Staff Budget Access form to formalize the initiation and approval of changes to user access. The form must be approved by the user's Executive Team member and Budget Manager and submitted to Business Services for budget approval prior to final approval by Purchasing. Finding 13 – High – Lack of Segregation of Request and Approval of Purchase Requisitions within Colleague: Within our testing of user access rights in Colleague for vendor maintenance and purchasing functions, we determined that access to create and approve purchase requisitions are not systematically segregated. The rights to process and modify purchasing transactions in the system are not currently restricted to appropriate personnel.

Of the 209 College personnel with access to Colleague for Purchasing Functions:

• 76 users have the ability to both create and approve a purchase requisition without verification from a separate account prior to approval (Refer to Finding 1)

• 1 user’s access has purchasing function access rights in Colleague that were retained after transferring to another position outside of the Purchasing Department

• 6 users are not associated with the purchasing department and whose job descriptions do not entail purchasing functions but can create requisitions and blanket Purchase Orders and Purchase Orders in Colleague

• 2 users can create and approve a purchase requisition, and issue a blanket Purchase Order or Purchase Order upon the requisition's approval without review and verification from a separate account

Results: Finding remediated Based on our review of the user access report, we verified that IT implemented user profile roles in Colleague and that user access to purchasing screens in Colleague is appropriate. Purchasing personnel still have the ability to both prepare and approve purchase orders, as it is deemed necessary to perform their duties. The Purchasing Department has revised the Purchasing Standard Operating Procedures whereby designated preparers may create a requisition, but a budget authority outside of Purchasing must approve. Once the requisition is fully approved, the requisition is then assigned to another purchasing staff member for further processing. In addition, Purchasing has implemented a Staff Budget Access form to formalize the initiation and approval of changes to user access. The form must be approved by the user's Executive Team member and Budget manager and submitted to Business Services for budget approval prior to final approval by Purchasing.

Appendix



11

The appendix defines the approach and classifications utilized by Internal Audit to assess the residual risk of the area under review, the priority of the findings identified, and the overall assessment of the procedures performed. Risk Ratings Residual risk is the risk derived from the environment after considering the mitigating effect of internal controls. The area under audit has been assessed from a residual risk level utilizing the following risk management classification system.

High risk findings have qualitative factors that include, but are not limited to:

• Events that threaten the College’s achievement of strategic objectives or continued existence

• Impact of the finding could be felt outside of the College or beyond a single function or department

• Potential material impact to operations or the College’s finances

• Remediation requires significant involvement from senior College management

.

Moderate risk findings have qualitative factors that include, but are not limited to:

• Events that could threaten financial or operational objectives of the College

• Impact could be felt outside of the College or across more than one function of the College

• Noticeable and possibly material impact to the operations or finances of the College

• Remediation efforts that will require the direct involvement of functional leader(s)

• May require senior College management to be updated

Low risk findings have qualitative factors that include, but are not limited to:

• Events that do not directly threaten the College’s strategic priorities

• Impact is limited to a single function within the College

• Minimal financial or operational impact to the organization

• Require functional leader(s) to be kept updated, or have other controls that help to mitigate the related risk

High

Moderate

Low



Request for Qualifications RFQ#2019-10

Issue Date: April 29, 2019

By the Director of Purchasing and Business Services

Annual Financial Audit Services

RFQ# 2019-10 1 | P a g e

RFQ Acknowledgement of Receipt Re: Del Mar College Request for Qualifications

#2019-10 Annual Financial Audit Services

Please fill in the requested information below as acknowledgment that you have received the Request for Qualifications noted above, including the related RFQ Questionnaire. If your firm has an interest in participating, it is highly recommended that this sheet be completed and returned to Del Mar College, Purchasing Department, 101 Baldwin Blvd., Corpus Christi, TX 78404 or faxed to 361-698-1276. By doing this, we will be able to provide notification to you of any addenda to this solicitation. COMPANY IDENTIFICATION: Firm name, address, telephone and fax. _____________________________________________________________

_____________________________________________________________

_____________________________________________________________

_____________________________________________________________

COMPANY POINT OF CONTACT: Name, title, phone, fax and email address of person to receive communications regarding this Request for Qualifications. _____________________________________________________________

_____________________________________________________________

� Yes, Our Company does have an interest in responding.

� No, Our Company does not have an interest in responding.

SIGNED:

Printed Name and Title ______________________________________________________________________________ Date and Signature

RFQ# 2019-10 2 | P a g e

Del Mar College will receive Statements of Qualifications from Respondents interested in providing the services described herein. RFQ Announcement: The Del Mar College District (the “College”) announces RFQ # 2019-10. Request for Qualifications (the RFQ) for Annual Financial Audit Services. RFQ Package: The RFQ package instructions will be available on the College website http://www.delmar.edu/offices/pbs/bid-opportunities.html on Monday, April 29, 2019 and may be requested via fax, email, or in person from the Director of Purchasing and Business Services. To be considered, Statements of Qualifications must be received not later than 2:00 P.M., local time on Tuesday, May 14, 2019.

Statements of Qualifications shall be returned to: Physical Address: Del Mar College Director of Purchasing and Business Services 3001 Ayers Street Corpus Christi, Texas 78404 Phone: 361/698-1560, Fax: 361/698-1276 Email: [email protected]

Mailing Address: Del Mar College Director of Purchasing and Business Services 101 Baldwin Blvd. Corpus Christi, Texas 78404

RFQ Inquiries: All questions, interpretations, and clarifications (including technical and contractual) shall be directed to the Director of Purchasing and Business Services, who will refer such to other College personnel as appropriate. All such inquiries shall be made at least five (5) workdays before the SOQ is due.

RFQ Conference: A Pre-Submittal Teleconference will be held at 10:00 A.M. on Thursday, May 2, 2019. Teleconference instructions will be provided to all interested respondents that submit an RFQ Acknowledgement of Receipt.

Statement of Qualifications: SOQ Submittals: 1 Original, (5) copies, 1 Digital CD or Flash drive of the Statement of Qualifications (the SOQ) shall be received and time stamped by the College’s Purchasing Office at the Physical Address noted above before 2:00 p.m. local time on Tuesday, May 14, 2019. If requested, Respondents shall subsequently deliver additional copies within three (3) workdays after request(s).

Interviews: Monday, May 20, 2019 @ 11:00 AM - 4:30 PM At the discretion of the College, any or all of the following interviews with the, may occur at times and locations of the College’s choice. • Interview(s) with the Evaluation Team, mandatory. • Interview(s) with the Administrative Staff, if requested by College.

http://www.delmar.edu/offices/pbs/bid-opportunities.html


RFQ# 2019-10 3 | P a g e

1. OVERVIEW-PURPOSE A. The Board of Regents of Del Mar College is requesting Statements of Qualifications for the

purpose of selecting an independent, qualified certified public accounting firm to perform a financial audit of the Del Mar College Foundation, Inc. (the Foundation) for the fiscal year ending June 30, 2019 and for the Del Mar College District (the College) for the fiscal year ending August 31, 2019.

B. The College intends to enter into a professional services contract with the selected Respondent. The period of performance of the contract will begin on or about September 1, 2019 and terminate when all services and reports associated with the audits are completed. Subject to the mutual agreement of the parties, the contract may be renegotiated and amended on a year-to-year basis to include services for audits in subsequent, consecutive fiscal years, so long as the total number of fiscal years audited under the contract does not exceed five (5).

C. Respondents must be licensed to practice public accounting in the State of Texas. D. General information about the College and the Foundation may be found on the web at

http://www.delmar.edu/ and http://www.delmar.edu/foundation. E. As a matter of principle, Del Mar College is extremely sensitive to the cost of the annual audit.

However, the College's primary concern is to obtain the best possible service from a qualified firm.

2. DEL MAR COLLEGE DISTRICT A. Del Mar College District is a political subdivision of the State of Texas located in Nueces County.

The College was founded in 1935, under the control of the Board of the Trustees of Corpus Christi Independent School District and started in borrowed classrooms with 154 students in the first class. In 1951, the College became an independent political sub-division, legally Corpus Christi Junior College District. In 1999, the Board of Regents adopted Del Mar College District as the official name of the institution. The Del Mar College service area is comprised of Nueces, Aransas, San Patricio and parts of Kleberg and Kenedy Counties.

B. The significant accounting policies followed by the College in preparing these financial statements, are in accordance with the Texas Higher Education Coordinating Board’s Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges. The College applies all applicable GASB pronouncements. The College is reported as a special-purpose government engaged in business-type activities.

3. SCOPE OF AUDIT SERVICES FOR DEL MAR COLLEGE DISTRICT A. The scope of services includes the activities described below to perform the annual financial

statement audit on the College's Comprehensive Annual Financial Statements (CAFR). The CAFR includes a management discussion analysis, basis financial statements, statistical information, and other supplementary information and compliance reports. Management is responsible for preparing the financial statements in accordance with generally accepted account principles. In addition, management is responsible for preparing supplementary and compliance reports in accordance with the respective prescribed guidelines that includes the Texas Higher Education Coordinating Board and the Uniform Administrative Requirements, Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

http://www.delmar.edu/

http://www.delmar.edu/foundation.

RFQ# 2019-10 4 | P a g e

1. To issue an opinion on the fair presentation, in all material respects, the financial statements in

conformity with accounting principles generally accepted in the United States of America. 2. To perform limited procedures to the management's discussion and analysis in accordance with

the auditing standards generally accepted in the United States of America. 3. To perform an audit of the College's financial statements in accordance with the standards

applicable to financial audits contained in Government Audits Standards issued by the Comptroller General of the United States.

4. To perform a compliance audit for each major federal programs in accordance with compliance requirements types described in the U.S. Office of Management and Budget's OMB Compliance Supplement.

5. To perform a compliance audit for each of the College's major state programs in accordance with compliance requirement types described in The State of Texas Single Audit Circular issued by the Governor's Office of Budget and Planning.

6. To issue an opinion on the fair presentation, in all material respects, the schedules required by the Texas Higher Education Coordinating Board; schedule of expenditures of federal awards; and the schedule of expenditures of state awards in relation to the basic financial statements as a whole.

7. Issue a separate management letter including all control deficiencies, significant deficiencies and material weaknesses, including status of prior year findings and management’s responses to each comment.

8. Assist with the College's submission of the annual audited financial statements to the State of Texas by January 1 of each audit year in accordance with State statutes.

9. Assist with the College's submission of the annual audited financial statements to the Board of Regents of Del Mar College District before the first Tuesday in December, of every audit year.

10. Assist with the preparation and submission of the annual Data Collection Form to the Federal Audit Clearinghouse in accordance with the Office of Management and Budget (OMB) Uniform Grant Guidance.

B. Documents included in the CAFR (subject to change audit and reporting standards). 1. Basic Financial Statements

- Management's Discussion and Analysis - Statement of Net Position - Foundation Statement of Financial Position - Statement of Revenues, Expenses and Changes in Net Position - Foundation Statement of Activities and Changes in Net Assets - Statement of Cash Flows - Notes to the Financial Statements - Required Supplementary Information

2. Schedules Required by the Texas Higher Education Coordinating Board - Schedule of Operating Revenues - Schedule of Operating Expenses by Object - Schedule of Non-Operational Revenues and Expenses - Schedule of Net Financial Position by Source and Availability

RFQ# 2019-10 5 | P a g e

3. Schedules of Federal Awards

- Schedule of Federal Findings and Questioned Costs - Schedule of Expenditures of Federal Awards - Notes to Schedule of Expenditures of Federal Awards

4. Schedules of State Awards - Schedule of State Findings and Questioned Costs - Schedule of Expenditures of State Awards - Notes to Schedule of Expenditures of State Awards

5. Summary of Reports to be issued - Independent Auditor's Report expressing an opinion on the fair presentation of the basic financial

statements, in conformity with accounting principles accepted in the United States of America. - An "in relation to" report on supplemental financial information presented in the CAFR. - A Report on Internal Control over Financial Reporting and on compliance and other matters

based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards.

- Report on Compliance with Requirements Applicable for Each Major Federal Program on Internal Control over Compliance required by the Uniform Guidance.

- Report on Compliance with Requirements Applicable for Each Major State Program on Internal Control over Compliance required by the State Texas Single Audit Circular.

- Report on Fraud, Abuse, or Illegal Act (only when observed). - Report on Compliance with Requirements Applicable to Each Major State Program and Internal

Control over Compliance in Accordance with State of Texas Single Audit Circular.

4. DEL MAR COLLEGE FOUNDATION, INC. A. The Foundation is a not-for-profit corporation chartered by the State of Texas and operated as an

adjunct entity of the College. As a separate legal entity, the Foundation requires an audit totally separate from the College's audit. The Foundation is also reported as a Component Unit in the College's financial statements.

B. The Foundation is exempt from federal income taxes under section 501 (c) (3) of the Internal Revenue Code and is not classified as a private foundation under section 509(a) of the Code.

C. For the fiscal year ending June 30, 2018, the Foundation reported net assets of $22 million dollars and total revenue of $4.5 million dollars.

D. The audit shall follow the recommendations and guidelines of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) no. 117, "Financial Statements of Not-For-Profit Organizations" which includes reports of financial position by class of net assets (per ASU 2016-14 guidelines) and a statement of cash flows.

5. SCOPE OF AUDIT SERVICES FOR THE DEL MAR COLLEGE FOUNDATION, INC. A. To perform an audit of the Foundation’s financial statements in accordance with auditing standards

generally accepted in the United States of America. B. To issue an opinion on the fair presentation, in all material respects, the financial statements in

conformity with accounting principles generally accepted in the United States of America.

RFQ# 2019-10 6 | P a g e

C. Issue a separate management letter including all control deficiencies, significant deficiencies and material weaknesses, including status of prior year findings and management’s responses to each comment.

D. Documents included in the Annual Audited Financial Report 1. Independent Auditor's Report 2. Statements of Net Financial Position and changes in Net Assets 3. Statements of Activities 4. Statements of Cash Flows 5. Notes on Financial Statements

E. Summary of Reports to be issued Independent Auditor's Report expressing an opinion on the fair presentation of the basic financial statements, in conformity with accounting principles accepted in the United States of America

F. The College prefers that the Foundation audit begin soon after the effective date of contract and end not later than October 31, 2019.

6. SERVICES AND INFORMATION APPLICABLE TO EITHER AUDIT A. The College will provide the auditor with reasonable workspace, desks, and chairs. The auditor

will be provided with access to telephone lines, photocopying facilities, and fax machines. B. The audit firm shall be available prior to the close of the fiscal year for interim or preliminary audit

work and compliance testing. (This requirement is not applicable for the FY 2019 audit of the Foundation).

C. Prior to submission of a completed audit report, the staff of the audit firm must review a draft of the proposed report and management letter with the College administration.

D. The audit firm will be required to present verbal reports at a meeting of the Board of Regents. E. The College intends to meet the requirements to receive the Government Finance Officers

Association's Certificate of Achievement for Excellence in Financial Reporting. The auditor will assist the College with implementing comments and suggestions provided to the College with Summary of Grading Results on the Certificate of Achievement Program for its Comprehensive Annual Financial Report and review the required responses to the GFOA.

F. The College's accounting staff will be available to answer questions, locate documents, and assist in preparing letters, confirmations, etc. Audit working papers, schedules, analysis, and statements may be prepared for the auditor by the College's staff with prior approval of the John Johnson, Comptroller.

G. The audit firm must retain audit working papers for a period of not less than five years after the date of the auditor's opinion or until notified that all cognizant agency reviews have been completed. The working papers shall be made available for review by the federal and state audit agencies, by Del Mar College, and by designated representatives thereof.

H. The primary contact person for matters of a contractual nature will be Raul Garcia, Vice President and Chief Financial Officer, or designee.

7. FORMAT FOR RESPONSE The Statement of Qualifications should be limited to about twenty (20) pages and include the following sections, A through G, in that order. Provide information in the order listed: A. Cover Letter and Executive Summary:

RFQ# 2019-10 7 | P a g e

1. Provide a signed cover letter that references this RFQ and confirms that all elements of this RFQ have been reviewed and understood.

2. Identify your primary point of contact for this effort and the preferred method the College should use in contacting this person.

3. Discuss your understanding of the work to be done and a commitment to perform the work within the time period stated.

4. Briefly profile the reasons why Respondent is best suited to fulfill the College's needs and objectives.

5. Provide names and titles of individuals authorized to make representation for Respondent and how to contact them.

6. The cover letter must be signed by an individual who is authorized to bind Respondent contractually.

B. Background and prior experience in auditing 501 (c) (3) corporations and Texas public community colleges or universities. 1. List current or past public school (K-12) districts, community college or university auditing

assignments in Texas. Give the length of engagement and scope of work currently being or previously performed. Provide similar information for audits of 501 (c) (3) corporations.

2. Discuss your familiarity with guidelines issued by the Texas Higher Education Coordinating Board for financial reporting requirements applicable to Texas Public Community and Junior Colleges.

3. The publication of the Texas Higher Education Coordinating Board "Annual Financial Reporting Requirements for Texas Public Community and Junior Colleges" may be found at http://www.thecb.state.tx.us/finance/afrmanual.pd£

4. Discuss your experience in fund accounting and governmental audits. 5. Discuss your experience and knowledge of federal student financial aid programs. 6. Discuss your familiarity with the Colleague Financial Records System (a product of Ellucian

Inc. formerly known as Datatel Corporation) and MS Dynamics. This is the accounting software used by the College/Foundation. Proposers unfamiliar with the accounting system and computer hardware and software at the College/Foundation are encouraged to arrange a time to review the systems in detail. Appointments should be arranged by calling John Johnson, Del Mar College Comptroller at 361-698-1269 (College) and/or Joel Soliz, Assistant Director Foundation Services (Foundation), at 361-698-1047.

7. Discuss experience in preparing audit in the CAFR format. C. Identification of direct and support staff.

1. Specifically identify by name the entire audit team to be assigned to the College and the Foundation audits. For each team member; a. Years of experience with performing audits of Colleges and Universities and Foundations, b. years of compliance with related federal and state requirements, c. the resumes of each team member d. Continuing education credits relating to colleges and universities, and the foundation. e. Provide evidence with CPE requirements relating to Government Auditing Standards.

2. Provide information about the size, structure and location of the office that will be principally supporting the College and the Foundation audits.

http://www.thecb.state.tx.us/finance/afrmanual.pd%C2%A3

RFQ# 2019-10 8 | P a g e

a. Provide a list of the total number of employees in the office stratified by partners, managers, senior and staff accountant, and the like.

b. Provide a list of audit clients of higher institutions and foundations. c. Describe the resources that your firm can provide on an as-required basis to address

technical issues that may arise during the course of the College audit. d. Describe your company policy with respect to rotation of staff assigned to an audit of the

same organization from one year to the next. D. Audit approach (philosophy).

3. Discuss or describe Respondent's general philosophy for audits of public institutions such as the College and 501 (c) (3) corporations such as the Foundation.

4. State that the examination will be in accordance with generally accepted auditing standards and that the audit opinion is subject to inherent risks and errors or irregularities that may exist, or if any other circumstances are encountered that require extended services, the auditor will promptly advise the College.

5. State that no extended services will be performed unless approved, in advance, by the College.

E. Provide references including contact names and phone numbers of audits clients preferably of institutions of higher education and related foundation.

F. Peer Review and Disciplinary Actions: 1. State whether Respondent has received a peer or quality review. Provide a copy of the latest

Peer Review. 2. Provide information about any disciplinary actions undertaken against Respondent.

G. Proposed Staffing 1. Categories of audit staff proposed. 2. Planning hours of audit firm staff time. Submit a work plan giving time estimates and staff

level assigned for each significant segment for the College audit. 3. Total estimated hours by category of audit staff. 4. Itemize types of out-of-pocket expenditures.

8. SELECTION PROCESS

A. Contractor selection will be made to a Respondent who, in the opinion of the Evaluation Team and the Board of Regents, best demonstrates the competence and qualifications necessary to perform the services required and with whom the College is able to negotiate a fair and reasonable price for same.

B. An evaluation committee will review the Statements of Qualifications received. At the College's option, any Statement of Qualification may be eliminated from consideration if it does not follow the requirements of this RFQ or does not meet the minimum content or quality standards. Statements of Qualifications will be reviewed by the committee to determine competence and qualifications to perform the services required.

C. At the discretion of the College, any or all of the following interviews with any Respondent may occur at times and locations of the College's choice. 1. Interview(s) with the evaluation team, if desired. 2. Interview(s) with the President and key administrative staff, if desired.

RFQ# 2019-10 9 | P a g e

3. Interview(s) with the Board of Regents, if desired, required and will determine which Respondents will be invited to appear before the Committee to present and discuss their qualifications.

9. EVALUATION CRITERIA A. Team members experience with financial and compliance audit experience.

1. Preference will be given to staffs experience with institutions of higher education; compliance audit in accordance with The State of Texas Single Audit Circular; compliance described in the U.S. Office of Management and Budget's OMB Compliance Supplement with a focus on Title IV Student Financial Aid programs; and foundations.

B. Respondent's familiarity with the financial accounting software used by the College and Foundation.

C. Other staff available to provide technical guidance D. Respondent's approach or general philosophy for audits of public institutions such as the College

and 501 (c) (3) corporations such as the Foundation. E. Content of the most recent peer review. F. The quality of responses from client references. Preference shall be given to audit clients of

institutions of higher education or foundation. G. Our perception of respondent's ability to perform the audit within the timelines required as stated

in this Request for Qualifications. H. College accessibility to the respondent and the respondent's accessibility to the College. I. Results of the interview(s) with evaluation committee members, the College President or key

administrative staff and/or the Board of Regents. J. Level of assistance to the College in its efforts for obtaining the GFOA Certificate of

Achievement for Excellence in Financial Report.

10. GENERAL TERMS AND CONDITIONS A. RFQ/SOQ Errors and Omissions

1. If a Respondent discovers any ambiguity, conflict, discrepancy, omission or other error in this RFQ, any of its attachments or any addendum, it shall immediately notify the College's Director of Purchasing and Business Services of such error in writing and request modification or clarification of the document. Approved modifications, deletions and additions will be made by addendum. Clarification will be given by written notice to all parties who have been furnished an RFQ Package and have advised the College of their interest to respond.

2. If a Respondent fails to notify the College prior to the date fixed for SOQ submissions of an error in this RFQ known to them, or an error that reasonably should have been known them, it shall submit a Statement of Qualifications at their own risk, and if it is awarded the Contract, it shall not be entitled to additional compensation or time extension by reason of the error or its later correction.

3. As a function of the negotiation process, the College reserves the right to remedy technical errors in response to this RFQ and/or modify the published scope of services. Should the College determine that specific expertise is lacking in the audit team, the College will reserve the right to request specific consultants with specific expertise to be added to the team.

B. Addenda to RFQ

RFQ# 2019-10 10 | P a g e

The College may modify this RFQ, any of its action dates, or any of its attachments, prior to the date fixed for submission of SOQs, by issuance of an addendum to all parties who have been furnished this RFQ and have advised the College of their interest to respond. Addenda will be numbered consecutively.

C. Respondent's Cost All Respondent costs relating in any way to this RFQ and Respondents SOQs are entirely the responsibility of the Respondent and shall not be chargeable to or paid by the College.

D. Rejection of Statement of Qualifications The College may reject any or all Statements of Qualifications and may waive any deviation related to this RFQ and any SOQ. The College's waiver of any such deviation shall in no way modify this RFQ document or excuse the Respondent from full compliance with its requirements if the Respondent is awarded the Contract. Statement of Qualifications referring to terms and conditions other than the College's terms and conditions may be rejected as being nonresponsive.

E. Cancellation While it is the intent of the College to proceed with the Project, this solicitation does not obligate the College to enter into a Contract. The College reserves the right to cancel this RFQ at any time with no obligation to any Respondent. No obligation either expressed or implied, exists on the part of the College to make an award or to pay any costs incurred in the preparation or submission of a Statement of Qualifications.

F. Execution of the Contract 1. If the College tentatively selects a Respondent for this Project and requests in writing that such

Respondent execute the College's completed Contract, such request will be considered withdrawn if the Contract is not signed by the Respondent and returned, along with the required documents, to the College within seven (7) working days. The period for execution may be changed by the College.

2. Contracts are of no force or effect until approved by the appropriate College officials. Any work performed prior to receipt of a fully executed Contract shall be at Respondent's sole risk. Failure to execute the Contract within the time identified above shall be sufficient cause for voiding the award. Failure to comply with other requirements within the set time shall constitute failure to execute the Contract. If the selected Respondent refuses or fails to execute the Contract, the College may award the Contract to the next qualified highest ranked Respondent.

G. Proprietary Information Respondent should be aware that the contents of all submitted Statements of Qualifications become the property of the College upon receipt and are subject to public review and disclosure, after a contract has been awarded, under the terms of the Texas Public Information Act. All information submitted with your proposal will be considered public information unless Respondent identifies all proprietary information in the Proposal by clearly marking on the top of each page so considered Proprietary Information. A final determination of what constitutes proprietary information or trade secrets is made by the Texas Attorney General under the Texas Public Information Act, Chapter 551, Texas Government Code. While Del Mar College will endeavor to maintain all submitted information deemed proprietary within Del Mar College, Del Mar College will not be liable for the release of such information.

RFQ# 2019-10 11 | P a g e

H. Insurance The Contractor shall, at its expense, purchase and maintain in full force and effect, for the duration of the Contract, such primary insurance as will protect itself and the College and Foundation from and against liability, loss, damage, expense, cost (including without limitation to costs and fees of litigation) out of or in connection with the performance of the work hereunder whether such work is performed by the Contractor, any sub consultant, by anyone directly or indirectly employed by any of them, or by anyone for whose acts any of them may be held liable.

11. SUBMISSION OF PROPOSAL A. Respondents are asked to provide 1 Original, (5) copies, 1 Digital CD or Flash drive of the

Statement of Qualifications (SOQ) in sealed envelopes or containers. The exterior of each envelope or container must be plainly marked, RFQ2019-10 Annual Financial Audit Services. SOQ responses are due on or before the time and date set forth on page 1 of this RFQ.

B. Proposals may be delivered directly to the office of the Director of Purchasing and Business Services, Del Mar College, Multiservice Building, 3001 Ayers, Corpus Christi, TX 78404.

C. Proposals may be mailed to: Del Mar College, Attn: David Davila, Director of Purchasing & Business Services, 101 Baldwin Blvd., Corpus Christi, TX 78404- 3897.

D. The Respondent is solely responsible for ensuring delivery of the SOQ no later than the date and time specified. Use of the U.S. Postal Service, campus mail system, express or overnight delivery, or any other service which might result in delayed delivery shall not relieve the Respondent from the conditions of the specified deadline. Annual Financial Audit Services


