Audit reveals community colleges granted excessive paid holidays

Auditor Investigation Report


The Office of the State Auditor received an allegation through its Hotline that Central Carolina Community College (College) gave its staff additional paid holidays in excess of the standard 12 paid holidays provided to state employees. The key finding was that the College’s Board approved extra holidays resulting in almost $900,000 in payments to employees for days they did not work.

Central Carolina Community College operates campuses in Chatham, Harnett, and Lee counties. The College receives aid from the State and county appropriations. The College served almost 10,000 students during both the fall 2016 and the spring 2017 semesters.

AUDITOR’S KEY RECOMMENDATIONS
• The State Board of Community Colleges should adopt a new rule requiring all community colleges to conform with the OSHR holiday policy
• The Community College System Office should ensure that all community colleges comply with the new rule to be adopted by the State Board of Community Colleges
• The Central Carolina Community College Board of Trustees should adopt a holiday policy that conforms to the new State Board holiday policy

Central Carolina Community College (College) paid employees for 11 more holidays than commonly recognized by other state and county government entities during the 2017 fiscal year. As a result, the College paid employees $862,424 for days they did not work. The Board of Trustees (Board) approved the holiday calendar with an excess number of holidays as an employee benefit and recruiting tool.

The Community College System Office (System Office) Chief of Staff explained that the State Board does not have a formal policy that explicitly specifies holidays although the State Board does have other human resource policies. Employees of state agencies, surrounding counties, universities, and public schools all receive 12 paid holidays each year.

College Granted Employees 11 Extra Holidays
During fiscal year 2017, the Board approved a holiday calendar that recognized a total of 23 paid holidays, 11 more paid holidays than those received by state and county employees.

The College provided extra holidays as follows:
• July 5, 2016 (extra day after Independence Day)
• November 8, 2016 (Election Day)
• November 23, 2016 (extra day before Thanksgiving)
• December 19, 2016 through December 22, 2016 and December 28, 2016 through
December 30, 2016 (seven extra days during Winter Break)
• April 17, 2017 (Easter Monday)
Resulted in Paying Employees $862,424 for Days They Did Not Work

The President of the North Carolina Association of Community College Presidents sent all community college presidents a memorandum supporting all 3 recommendations.