SECTION 1: ACCOUNTING STANDARDS AND CONTROLS
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Basis of Accounting The fiscal records of the College shall be maintained in accordance with requirements established by the Governmental Accounting Standards Board (GASB) and guidelines published by the American Institute of Certified Public Accountants (AICPA) and the National Association of College and University Business Officers (NACUBO). The College is also subject to the provisions of the Commonwealth of Pennsylvania’s Community College Act of 1963, amended 1993. Subsequent to the 1993 amendments, the PA Dept. of Education issued its “Policies on Issues Arising from Audits of Pennsylvania’s Community Colleges.” The provisions of this document are applicable beginning with the 1998-99 fiscal year. Fiscal Control There shall be performed an annual audit of the GAAP financial statements of the College by a certified public accounting firm to determine for the Board whether those statements, given the underlying system of internal controls, fairly present the financial condition of the College. The President shall be responsible for determining the appropriate processes and systems to achieve the intent of this policy. Chart of Accounts The College Controller will develop and maintain a comprehensive chart of accounts for the College, consistent with the requirements of generally accepted accounting procedures for institutions of higher education in the public sector. To the extent possible, the chart of accounts will be made consistent with the system recommended by the National Association of College and University Business Officers. Recording of Revenue Revenue will be recorded when earned. Tuition revenue is assumed to be earned for this purpose at the time of registration. Ultimately, however, tuition revenue is not earned until the first class meeting has been held. Registered students may drop classes prior to the start of classes without financial penalty, provided the drop is made according to College procedures. Recording of Expenses Expenses will be recorded when invoiced. Incurred expenses as of the end of the fiscal year will be accrued via the closing process if no invoice has been received
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