NORTH CAROLINA COMMUNITY COLLEGE SYSTEM

Dr. William S. Carver, II

Interim President

May 24, 2023

Mr. Jim Morton, President

Cape Fear Community College
411 North Front Street
Wilmington, NC 28401-3993

Dear President Morton:

Enclosed is the final report of findings from the compliance review conducted FY 2022-23 at
Cape Fear Community College pursuant to North Carolina General Statute § 115D-5(m). The
college response dated March 21, 2023, provided additional information; therefore, a finding
was noted in the area of college and career readiness related to the processes, procedures,
classes, and programs reviewed.

Please send an email to Amanda Tolar, Director of Compliance Services,

tolara@nccommunitycolleges.edu to acknowledge receipt of this report.

Thank you for cooperating with the North Carolina Community College System Compliance
Services staff during the performance of the compliance review.

Sincerely,

Dr. Kimberly Gold

Chief of Staff

Att.
c: Bill Cherry, Chair, Cape Fear CC Board of Trustees
Beth Wood, NC State Auditor
Dr. Lisa Mabe Eads, Associate Vice President of Academic Programs
Sandra Thompson, Assistant State Director, Title II
Amanda Tolar, Director of Compliance Services
Susan Miller, Compliance Examiner
Cape Fear Community College
FY 2022-2023 Compliance Review Findings
Page 1

North Community College System

Compliance Review Final Report for Cape Fear Community College

Review Conducted: Fiscal Year 2022-23
Records Reviewed: Reporting Period Summer Semester 2021 – Spring Semester 2022
METHODOLOGY

A compliance review was conducted at Cape Fear Community College by the North Carolina
Community College System (NCCCS) Compliance Services staff to ensure data used to allocate State
funds across community colleges was reported accurately for the Summer Semester 2021 – Spring
Semester 2022 reporting period. The review was conducted on a selected sample of data relevant
to this period.

If disagreement exists, the college may appeal the compliance review findings to the State
Board of Community Colleges (SBCC). The request to appeal and grounds for appealing the
report findings must be submitted in writing within thirty (30) days of receipt of the Compliance
Review Final Report. The Board’s Accountability and Audit Committee will hear the appeal and
make its recommendation to the full State Board.

The major components of the compliance review conducted during FY 2022-23 were outlined in
SBCC Numbered Memo CC22-036 FY 2022-23 Compliance Services Updates and Review
Procedures. Additional information may be requested for clarification or to provide a clearly
defined way to ensure compliance with North Carolina General Statute § 115D-5 and Title 1 of the
State Board of Community Colleges Code.

FINDINGS SUMMARY

Based on the site review, a material finding is noted in the area of college and career readiness and
is discussed on the pages that follow.
Cape Fear Community College
FY 2022-2023 Compliance Review Findings
Page 2

FINAL COMPLIANCE REVIEW FINDINGS

COLLEGE AND CAREER READINESS

The review of college and career readiness records yielded documentation showing a material
finding with non-compliant hours reported for budget FTE exceeding 5% of the total number of
hours included in the college and career readiness sample of classes reviewed. In exceeding the
5% threshold, the material finding warrants a reversion of funds. Material findings are written
based on information provided in SBCC Numbered Memo CC15-036 Compliance Services
Update and Review Procedures. The related classes included in the finding are listed in the
attached Summary of Findings of the Compliance Review.

For references listed, the URL for the State Board Code.

Instructional Pay
During a review of classes included in the sample, it was noted that instructional pay could not
be verified for the classes listed on the Summary of Findings attachment. Per documentation in
the class files, these sections were affiliated with other class sections and there was no
instructional pay for these sections. This resulted in over-reporting 2,224 hours.

References
1G SBCCC 100.99 Budget FTE Funding
1G SBCCC 200.94 Reporting of Student Hours in Membership for Continuing Education Course
Sections

Material Finding: A total of 2,224 hours was identified for the finding which equals 17.9% of
the total number of college and career readiness course hours included in the sample.

Recommendation: Staff should make certain internal controls are in place to ensure classes are
set up correctly and class hours are reported per the reference in Title 1 of the State Board of
Community Colleges Code.

Staff should review all records for which class hours were reported for regular budget FTE since
Spring Semester 2022 and make any necessary adjustments which can be made based on the
three-semester grace period, if applicable.

Findings are written based on information provided in SBCC Numbered Memo CC15-036
Compliance Services Update and Review Procedures.

For references included in this letter, see SBCC Code.

The cooperation of the president and staff during the compliance review was appreciated.
Cape Fear Community College
FY 2022-2023 Compliance Review Findings
Page 3

Submitted By: Amanda Tolar, Director of Compliance Services

Susan Miller, Compliance Examiner

Dates of Compliance Review: January 9-20, 2023

 FTE Reversion Summary
Cape Fear Community College
Compliance Review Conducted: FY 2022-23

COLLEGE AND CAREER READINESS (CCR): A total of 2,224 CCR hours were cited that require a
financial adjustment.
CCR Reversion
Tier Hours Divisor CCR FTE Value (Rounded)
3 2,224 /512= 4.34 $4,233.88 $18,375.04
TOTAL CCR TIER 3 $18,375.00

TOTAL FTE REVERSION *

Curriculum Reversion $0.00

Continuing Education Reversion $0.00
College and Career Readiness Reversion $18,375.00
TOTAL REVERSION $18,375.00
*This finding FTE reversion has been posted to decrease the college’s available budget by
$18,375.00. This material finding reversion must be posted to the college budget prior to
submitting next month’s files.
NORTH CAROLINA COMMUNITY COLLEGE SYSTEM
Dr. William S. Carver, II
Interim President

February 22, 2023

Mr. Jim Morton, President

Cape Fear Community College
411 North Front Street
Wilmington, NC 28401-3993

Dear President Morton:

SUBJECT: Coaching Opportunities Related to Risk Factors Identified During the

FY 2022-23 Compliance Review (2021-22 Reporting Period)

During the FY 2022-23 Compliance Review conducted at Cape Fear Community College, risk
areas related to class hours reported for budget FTE were identified. These areas were
discussed with college staff along with recommendations for improvement. The factors noted
in this letter provide the college with information to proactively address areas which pose a
potential risk for a finding in future compliance reviews.

It is recommended that college staff review internal procedures and workflows to ensure staff
involved in verifying and reporting class hours are familiar with the below listed references. The
process should ensure class hours reported for budget FTE are in compliance with State Board
of Community Colleges Code (SBCCC).

For references included in this letter, see SBCC Code.

Curriculum

Recommendation CU 1.1 Basic Law Enforcement (BLET) Review

During the review of all regularly scheduled CJC 110 classes included in the sample, it was noted
the census dates were miscalculated. When setting up the classes in the Colleague system, an
inaccurate census date was calculated because the actual meeting times and dates were not
entered into the system. To mitigate the risk of future findings, the census date for BLET classes
should be manually calculated based on the final class calendar and all documentation should
be consistent. This issue did not result in the incorrect reporting of BLET hours for the time
period reviewed.

Mailing Address: 5001 Mail Service Center | Raleigh, NC | 27699-5001

Street Address: 200 West Jones | Raleigh, NC 27603 | Phone: 919-807-7100
www.nccommunitycolleges.edu
AN EQUAL OPPORTUNITY EMPLOYER
Mr. Jim Morton, President
Cape Fear Community College, FY 2022-23 Coaching Letter
Page 2

It was also noted during the review of CJC 110 N15, offered Summer Semester 2021, that the
sponsorship letter for one student was dated two days after the beginning date of the class.
Basic law enforcement training courses must obtain a letter of sponsorship from a state,
county, or municipal law enforcement agency that is effective as of the first day of the course
section to be eligible for a tuition fee waiver.

References
1E SBCCC 800 Waivers
1G SBCCC 200.93 Reporting of Student Hours in Membership for Curriculum Classes

If you have questions, please contact me at goldk@nccommunitycolleges.edu or at 919-807-

7096. Thank you for cooperating with the North Carolina Community College System
Compliance Services staff during the review.

Sincerely,

Dr. Kimberly Gold

Chief of Staff

c: Dr. Levy Brown, Senior Vice President/Chief Academic Officer

Dr. Lisa Mabe Eads, Associate Vice President of Academic Programs
Tracy McPherson, Director, Public Safety Training Programs
Amanda Tolar, Director of Compliance Services
Susan Miller, Compliance Examiner
Institutional Effectiveness, Planning, and Compliance
FTE Compliance Review

James (Jim) Morton

President

Michael Cobb
Vice President,
Institutional
Effectiveness, Planning,
and Compliance

VACANT Dominique (Dom) VACANT VACANT

Assistant Vice Friant Institutional Researcher
Director, Grant
President, Instructional Systems Specialist, & Addreditation
Operations Assistant Development
Student Services

08-29-2023
 James (Jim) Morton
President

Student Services:
Registrar

Sabrina Terry
Vice President,
Student Services
and Enrollment
Management

Jeannie Jordan
Sr. Executive
Jeremy Gibbons
Assistant, VP
Dean, Enrollment
Student Services &
Services
Enrollment
Management

Angela Murphy
Registrar

Peggy Peoples
Anastasia Ramirez
Assistant Registrar -
Assistant Registrar
Downtown

Christina Rizzo Wendolyn (Wendy)

Katherine Niessner Mary Doyle Dino Medler
Coordinator, VACANT Kitchen VACANT
Enrollment Services Student Records Graduation
Transcript Records Specialist Student Records Records Specialist
Specialist Specialist-Registrar Specialist
Evaluation Coordinator

08-29-2023