College-raises investigation suffers a delay

Results expected next month

— A state investigation into salary increases at Northwest Arkansas Community College will not be completed until the end of the year, a state official said.

Kay Barnhill Terry, personnel administrator at the state Department of Finance and Administration, said she had planned to complete her investigation in October but needed additional documentation from the college.

Terry’s office has received the documentation but will be busy for several weeks in hearings on legislative matters, she said. The Legislature convenes Jan. 10.

Terry’s office began the investigation after a Benton County Daily Record article showed the college gave 33 pay increases despite a May 26 memorandum from state Finance Director Richard Weiss freezing state employee salaries, effective July 1.

It went to all state agencies, boards, commissions, and presidents and chancellors of state-funded colleges and universities.

The Bentonville college gave several pay increases after July 1, according to records. Terry concluded 17 of those increases were valid because they stemmed from promotions and job evaluations.

Seven of the increases are invalid, she declared, and one remains under review.

The state Department of Higher Education, which oversees salaries for nonclassified employees, such as professors, is reviewing another seven of the initial 33 pay increases, said Brandi Hinkle, communications coordinator for that department.

Terry also is reviewing the college’s entire payroll.

“No final decisions or conclusions have been made,” Hinkle said. “We are still assessing the job duties and titles.”

Hinkle and Terry said their departments are waiting for the results of a consultant’s review of the college’s records before concluding their investigations.

The college’s board of trustees voted unanimously Nov. 8 to hire a consultant to review employee titles, pay and responsibilities. Becky Paneitz, president of the community college, selected Andrew Bass of Conway. Bass previously served as the state’s legislative personnel administrator, Terry said.

Bass’ duties include helping the college resolve the state’s investigations and aligning employee job titles with those the state uses, Paneitz said.

In addition, the board has signed off on an Audit Oversight Committee to be formed by the end of the year. The committee will be responsible for holding the college president and vice presidents accountable on financial matters. It will review the college’s budget, fiscal reports, annual audits and tuition fees, Paneitz said.

Board member Johnny Haney said the consultant and audit committee are examples of how the board should be more involved in overseeing the college.

“If the trustees do not oversee the college president, who does?” Haney asked.

However, the board must be cautious not to micromanage college officials, he said.

“We want oversight, but we don’t want to get into the detail of the day-to-day,” Haney said.

Arkansas, Pages 14 on 11/24/2010

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