BENTONVILLE — A state investigation into pay increases given by NorthWest Arkansas Community College will extend beyond this week, a state official said.
Kay Terry, personnel administrator at the state Department of Finance and Administration, previously planned to have the examination of the college’s payroll wrapped up by October’s end. However, the office does not have all the information it needs from the college to complete the exam, Terry said this week.
Mark Scott, the college’s executive director of public relations, said Thursday the college has given the state everything it requested.
Terry’s office began reviewing the college’s payroll records after learning the college gave several pay increases despite a May 26 memorandum freezing state employee salaries.
AT A GLANCE
Classified And Unclassified
Classified employees who work on college campuses are typically administrative specialists, fiscal specialists, maintenance workers and those involved in public safety. Classified employee job duties, titles and pay grades are set by Act 688 of the 87th General Assembly.
College professors, vice presidents and other top administrators are considered nonclassified employees because their official titles are listed in each state agency or institution’s individual appropriation act.
Source: Department Of Finance And Administration.
State Finance Director Richard Weiss issued the memorandum, effective July 1. It went to all state agencies, boards, commissions and to the presidents and chancellors of state-funded colleges and universities.
NorthWest Arkansas Community College gave the pay increases after July 1, records show.
Terry’s office initially reviewed 32 employees identified by a Northwest Arkansas Newspaper report as receiving pay increases. She concluded 17 of those raises were valid. Those pay increases came from promotions and job evaluations.
Terry’s office later declared seven increases given to classified employees invalid. One of the 32 increases is under review.
The additional money paid to those employees since July 1 will have to be repaid to the college’s general revenue fund, Terry said.
Terry said she does not plan to release any additional information until the examination is completed. She said she could not say when that will be because she is waiting on additional paperwork from the college.
The other seven raises were given to unclassified employees. Those are under review by the state Department of Higher Education. No decision has been made on the validity of those raises.
Charlotte Moore, coordinator for institutional finance for two-year colleges at the Department of Higher Education, said she hopes to begin meeting with college officials next week about those seven unclassified positions.
The college has previously stated it will need to repay $9,809 from the invalid increases given to classified employees.
Terry said her office has not determined how much money the college will need to repay and could not verify the $9,809.
Scott said the college developed a chart detailing how much money had been paid to each classified employee who received an increase since July 1. The $9,809 was derived from that chart.
Scott has said the college will look to the NorthWest Arkansas Community College Foundation to repay the money.
Mike Luttrell, vice chairman for the foundation board, said no decision has been made on whether it will repay the money.
“There are a number of options for the foundation to consider,” Luttrell said. “We need to decide what’s the best way we can do this. If the foundation board decides (repaying the money) is the best way to support the college, then that’s OK with me.”
Scott said the college has learned from its mistakes and is ready to move on.
“We’ve acknowledged mistakes were made. We’ve never hidden from that. We have processes in place to make sure those mistakes do not happen again,” Scott said, noting the process involves better communication.
“We need to pick up the phone and ask questions instead of making assumptions,” Scott said.
Legislators recently recommended the college receive an additional $1 million starting with the new fiscal year in July 2011 and an additional $1.4 million in 2012.
Steve Gates, the college’s executive vice president for advancement, told legislators at a budget hearing in Little Rock on Tuesday the money will be used for faculty needs and enrollment initiatives.
State Rep. Tim Summers, R-Bentonville, attended the meeting and said he will support the measure when it is called to a vote before the Joint Budget Committee of the Arkansas General Assembly next year.
Gates began his presentation to legislators by telling them about the pay increases, according to a college news release.
“We made mistakes, and we have taken full responsibility for those mistakes,” Gates said in a college news release.
Summers said Thursday he believed Gates.
“I’m confident that the correct thing will be done, and I’m also confident that they’ve learned well from their mistake,” Summers said.